New regulations for chip origin certification, STMicroelectronics reshapes its layout

1. The China Association for Market Regulation (CAAC) has issued a notice on the rules for determining the origin of semiconductors
According to the WeChat official account of the China Semiconductor Industry Association, the China Semiconductor Industry Association issued an emergency notice on the rules for determining the "origin" of semiconductor products on April 11. The full text is as follows:

Each member unit:
According to the relevant regulations of the General Administration of Customs, the origin of "integrated circuits" is determined based on the principle of changing the four digit tariff code, that is, the place of production is recognized as the origin. Please be sure to pay attention!
Please prepare the PO proof materials for customs verification when declaring!
For specific regulations, please carefully study the content of the General Administration of Customs Order No. 122 on substantial changes to standards in non preferential rules of origin. Please feel free to contact us if you have any questions!
Suggestion: Regardless of whether the "integrated circuit" is packaged or not, the place of origin for import customs declaration should be based on the location of the "wafer assembly plant".
China Semiconductor Industry Association
April 11, 2025

2.STMicroelectronics launches restructuring, focusing on manufacturing business optimization and layoffs
On April 10th local time, STMicroelectronics (ST) announced that it will reshape its manufacturing layout by adjusting it and optimizing its cost structure to ensure the long-term sustainability of ST as an IDM.
In terms of manufacturing, ST will focus on investing in 300mm silicon wafers and 200mm silicon carbide wafer factories to achieve large-scale production and improve the production efficiency of mature technologies for 150mm and 200mm. Introduce more AI and automation technologies in technology research and development, manufacturing, reliability, and certification processes to improve efficiency and focus on sustainability.
The 300mm wafer fab in Crolles, France will become the core of digital products, with plans to increase production capacity to 14000 wafers per week by 2027. Agrate's 300mm wafer fab in Italy will become the flagship manufacturing facility for intelligent power and mixed signal technology, with plans to increase production capacity to 4000 wafers per week by 2027. The Singapore wafer fab focuses on high-yield manufacturing of mature technologies and integrates global 150mm silicon wafer capabilities.
Factories such as Rousset in France, Tours, and Kirkop in Malta will optimize production capacity and functionality based on market demand. Catania, Italy will continue to be a center of excellence for power and wide bandgap semiconductor devices. The development of a new silicon carbide park is proceeding as planned, and the production of 200mm wafers will begin in the fourth quarter of 2025. Currently, resources for 150mm and EWS capabilities will be refocused on the production of 200mm silicon carbide and silicon power semiconductors, including GaN on silicon.
With the advancement of advanced manufacturing, the role of employees will shift from traditional manual tasks to process control, automation, and design. ST will implement a voluntary resignation plan and expects up to 2800 employees to voluntarily resign by 2027 to optimize the global cost structure.

3.SEMI: Global semiconductor equipment shipments soar to $117 billion in 2024
The International Semiconductor Industry Association (SEMI) recently released a report stating that the global shipment of semiconductor manufacturing equipment will reach $117.1 billion in 2024, an increase of 10% compared to $106.3 billion in 2023. From a regional perspective, Chinese Mainland, South Korea and Taiwan, China are still the top three markets for semiconductor equipment spending, accounting for 74% of the global market.
In 2024, the global front-end semiconductor equipment market achieved significant growth, with sales of wafer processing equipment increasing by 9% and sales of other front-end segments increasing by 5%. This growth is mainly due to increased investment in advanced logic, mature logic, advanced packaging, and HBM capacity expansion, as well as a significant increase in Chinese investment.
After two consecutive years of decline, the backend device segment is experiencing a strong recovery in 2024, mainly due to the increasingly complex demands of artificial intelligence and HBM manufacturing. Sales of packaging and testing equipment increased by 25% and 20% respectively, reflecting the industry's efforts in supporting advanced technology.

4. The construction of TSMC's Kumamoto Plant 2 is delayed, and resources are tilted towards the new plant in the United States
According to IT Home, citing Taiwan, China's "Economic Daily", when TSMC was accelerating the construction of new factories in the United States, the source pointed out that the progress of the second Kumamoto wafer factory of TSMC's Japanese subsidiary JASM would be delayed.
It is reported that the construction of TSMC's Japanese subsidiary JASM's second wafer fab in Kumamoto was originally scheduled to begin in the first quarter of this year. However, sources pointed out that the corresponding project will be postponed until "within this year". Although the construction project has been delayed, it does not mean that TSMC's Japanese subsidiary JASM will give up building this new wafer fab.
Industry analysis shows that due to the influence of US government policies and the fact that Japanese factories mainly produce chip products for the automotive industry, their terminal demand is relatively low. At the same time, many automotive brand customers supplied by TSMC have recently shown a willingness to expand their investment and production in the United States. Therefore, this may lead TSMC to prioritize concentrating its resources on new factories in the United States.