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The changing role of the foundry

August 20, 2026 -

by Neil Tyler, newelectronics.co.uk

Semiconductor manufacturing is entering a new phase of innovation, driven not by a single breakthrough but by a convergence of technological shifts. As demand for computing power accelerates so chipmakers are being forced to rethink both how chips are designed and how they are produced.

Three key developments are defining this transformation: advanced process scaling, heterogeneous integration through packaging, and AI-driven optimisation across design and fabrication.

For decades, semiconductor progress was defined by Moore’s Law and while that continues to be the case, it does so with increasing complexity. As manufacturers move into 3nm and plan for 2nm and beyond, traditional transistor designs are reaching their physical limits.  To maintain performance gains, the industry now is shifting towards new architectures such as gate-all-around (GAA) transistors.

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