Growth Research: "AI Semiconductor Supply Chain Restructuring Toward Direct Manufacturing Systems Like 'Terafab'"

“If the Trend Toward Securing Manufacturing Capacity Continues,
Semiconductor Equipment Firms will Benefit”

On July 27, the independent research firm Growth Research stated in a report on the semiconductor industry that the AI semiconductor supply chain is undergoing a structural shift — moving beyond chip design to direct manufacturing system construction — similar to the ‘Terafab’ project being pursued by Elon Musk, CEO of Tesla and SpaceX.

According to the report, Terafab is a massive project aimed at independently producing the AI semiconductor requirements of Tesla, SpaceX, and xAI. The plan is to establish a pilot fab (factory) in Texas, United States, and then invest $119 billion (about 175 trillion won) to build a full-scale production facility.

Growth Research analyzed that the core objective of this project is not cost reduction, but rather securing control over the supply chain. This is due to the fact that advanced foundry capabilities, high-bandwidth memory (HBM), and advanced packaging capacity required for AI semiconductor production are concentrated among a handful of companies, creating a structure in which even large customers must secure production volume over the long term.

Collaboration with Intel was also identified as a key variable. The report predicted that Terafab is highly likely to utilize Intel’s next-generation 1.4-nanometer process, known as ‘14A’, and to apply EMIB-based advanced packaging technology in the back-end process. It was anticipated that HBM would initially be sourced from existing memory companies such as Samsung Electronics, SK hynix, and Micron.

The report projected that the most direct beneficiaries of this shift will be companies in the semiconductor equipment sector. As the new manufacturing system is being established, there is a high likelihood that equipment verified for performance and yield in the pilot line will be repeatedly adopted in the initial mass production line and the final fab.

Yonghee Han, a researcher at Growth Research, commented, “If the move by global big tech to directly secure manufacturing capabilities continues to spread, semiconductor equipment companies are likely to be the first to benefit,” adding, “However, securing yield with the Intel 14A process and the mass production stability of EMIB will be key variables that determine the project’s success.”

He went on to say, “After equipment investment, the scope of beneficiaries is likely to expand to include materials, components, and HBM. In Korea, companies such as HPSP, Hanmi Semiconductor, Park Systems, and PSK are noteworthy in the process of supply chain expansion, and if manufacturing system construction gains momentum, investment opportunities across the value chain will also expand.”

This content was produced with the assistance of AI translation services.