Foundryecosystem Report: Terafab; capacity, EUV, GaN - Semiecosystem

The semiconductor industry is facing a significant capacity crunch, particularly at leading-edge nodes such as 3nm and 2nm, driven by surging demand for AI chips. TSMC, the dominant player in advanced... Read original →

TSMC’s decision to delay high-NA EUV adoption isn’t just about cost—it reveals a critical gap in the scaling roadmap beyond 2nm. This forces key clients like NVIDIA and Apple to stretch current EUV processes, intensifying reliance on advanced packaging like CoWoS, now the true bottleneck in AI chip ramp. The $119B Terafab initiative reflects U.S. desperation to rebuild domestic capacity but lacks a supporting ecosystem to challenge TSMC’s HPC dominance soon. India’s GaN fab targets power electronics but risks distorting mature-node allocation globally. Over the next 18 months, OSATs such as SPIL and Amkor will leverage FOEB and chiplet integration to erode traditional foundry-IDM boundaries. With geopolitical mandates fueling irrational capex surges, capital efficiency—not scale—will determine who survives the coming consolidation wave.