As the US-China conflict continues to intensify, Samsung Electronics' NAND Flash plant in Xi'an, China, is increasingly stuck in a process upgrade dilemma. On the one hand, with the semiconductor market evolving, the plant should adopt more advanced process equipment to meet market demand, but on the other hand, Samsung is hesitant to make new investments in the fab due to US semiconductor sanctions against China.
Semiconductor manufacturers worldwide are projected to increase 200mm fab capacity by 14% from 2023 through 2026, adding 12 new 200mm fabs as the industry reaches a record high of more than 7.7 million wafers per month, according to SEMI.
Memory makers continue to see end-market demand trail behind supply, but a recent surge in spot prices has prompted channel distributors and retailers to stockpile in anticipation of a bullish pricing trend, according to sources at memory module makers.
NAND wafer prices have been on the rise since the start of the third quarter, and NAND flash suppliers are expected to initiate price increases starting in the fourth quarter thanks to the clearer effects of their production cuts. DRAM prices are also expected to pick up in the next quarter, but likely at only a moderate pace as a clear recovery in end-market demand is not in sight, according to industry sources.
Alberto Sangiovanni-Vincentelli, professor and Edgar L. and Harold H. Buttner Chair of Electrical Engineering and Computer Science Department at the University of California, Berkeley, sat down to an exclusive interview with DIGITIMES Asia at the sidelines of SEMICON Taiwan 2023 on September 8. As a legend who created two of the world's most prominent electronic design automation (EDA) companies and who has accumulated decades of knowledge and experience in the semiconductor industry, Professor Sangiovanni-Vincentelli shed light on how far generative AI can go as a tool to advance the semiconductor industry. He also shared his thoughts on the solution of geopolitical tensions surrounding the semiconductor supply chain. Here is part one of the interview:
NAND flash memory made using mature processes is reportedly in tight supply as a result of Apple's decision to adopt older generation NAND for its iPhone 15, which caught its memory supplier off guard, according to industry sources .
In 2023, global spending on fab equipment for front-end facilities is projected to decrease by 15% before rebounding with a 15% year-over-year increase in 2024, according to a recent SEMI report.
The new iPhone 15 series does not include 2TB of storage, and initial sales projections are less optimistic, causing memory manufacturers to be cautious about customer shipment pull-ins in the second half of this year despite it being prime season, according to industry sources.
Following the semiconductor partnership between the US and Vietnam and US-based GlobalFoundries' opening of a new plant in Singapore, the US is looking to build a more diversified semiconductor supply chain, with South and Southeast Asian countries expected to emerge.
A recent supply-driven rally in NAND flash prices will allow memory module manufacturers to profit from previously accumulated low-price inventory, according to industry sources.
Partly attributable to the influence of generative AI, the semiconductor sector has stabilized after its decline. Nonetheless, the industry continues to anticipate a complete rebound as both the smartphone and PC industries remain in their downturns.
Samsung Electronics and SK Hynix are trying to dominate the rapidly growing high-bandwidth memory (HBM) market both through expanding capacities and revolutionizing the next-generation processing technology.
Samsung Electronics has stepped up its NAND flash memory production reduction, which is expected to reach 50% by the end of 2023, according to industry sources.
According to Korean media Money S, the South Korean government and major semiconductor firms have signed a "Semiconductor Advanced Packaging Technology Cooperation Development Agreement" to collaborate in advanced IC packaging technology research and development (R&D), so to secure South Korea's competitiveness in next-generation technologies.
After five consecutive quarters of declining revenue, the semiconductor industry reversed course in the second quarter of 2023, according to Omdia. Nvidia led the turnaround.
Advanced packaging and testing have become the hottest topics in the semiconductor industry in 2023, with TSMC's CoWoS packaging technology experiencing extremely high demand due to the surge in orders for AI GPU chips, creating a rare supply shortage situation in the post-pandemic era. And the just-ended SEMICON Taiwan 2023 was highlighted by a spate of forums on latest advanced packaging and heterogeneous integration technology developments, and it appears clear that 3D chiplets will become the next advanced packaging trend.
TSMC saw its August revenue increase 6.2% to reach a 7-month high, while revenue at fellow company United Microelectronics (UMC) slipped 0.6% on month halting a 5-month streak of sequential increases.
Memory chipmaker Macronix International has reported August revenue increased 19.2% sequentially to a four-month high of NT$2.6 billion (US$81.1 million), buoyed mainly by a pick-up in ROM chip orders from its Japan-based ROM customer.
Memory module manufacturers' reluctance to sell existing NAND flash inventories at low prices has driven up spot market prices since the end of August, according to industry sources.
SK Hynix Inc. has opened an investigation into the use of its chips in the latest phone from Huawei Technologies Co., after a teardown of the device revealed its memory and flash storage inside.
The inaugural Quantum Taiwan Forum, held on the opening day of SEMICON Taiwan 2023 running September 6–8 at the Taipei Nangang Exhibition Center, gathered experts from Fujitsu, IBM, IonQ, and the Quantum Computing Research Center under Hon Hai Research Institute to deliver keynote speeches, unveiling their latest technology applications and future development pathways. As this was the first time SEMICON Taiwan held a quantum forum in the country, the venue was tightly packed with attendees.
