Kioxia is set to introduce its progress on DRAM storage-class memory (SCM) and 3D-NAND technologies at the IEEE International Electron Devices Meeting (IEDM) 2024 conference in San Francisco in December, featuring its Oxide-Semiconductor Channel Transistor DRAM (OCTRAM) technology jointly developed with Taiwan memory chipmaker Nanya Technology, as well as MRAM-based storage-class memory jointly developed with SK hynix, according to a report from Block and Files.

Kioxia will reportedly present a new type of DRAM with oxide semiconductors that reduce power consumption, MRAM suitable for larger capacities for SCM applications, and a new 3D NAND structure with superior bit density and performance.

According to the report, Kioxia has developed the DRAM with oxide semiconductors with Nanya Technology. This Oxide-Semiconductor Channel Transistor DRAM (OCTRAM) features a gate-all-round InGaZnO (Indium Gallium Zinc Oxide) vertical transistor with the oxide that can reduce current leakage to an “extremely low” level. According to Kioxia’s press release, the technology has the potential to reduce power consumption across various applications, such as AI, post-5G communication systems, and IoT devices.

The MRAM-based storage-class memory is developed with SK hynix. According to Kioxia’s press release, the companies have achieved cell read/write operation at the smallest-ever scale of cell half-pitch of 20.5 nanometers for MRAM. The press release pointed out that memory reliability tends to degrade as cells are miniaturized. The companies develop a new read/write method that can reduce the unwanted capacitance that occurs in the readout circuits.  According to Kioxia’s press release, this technology has practical applications for AI and big data processing.

Last, Kioxia developed a new 3D NAND structure, aiming to enhance reliability and prevent the performance degradation of NAND-type cell. In conventional structures, degradation of performance typically occurs when the number of stacked layers increases. Compared to the conventional structure that stacks NAND-type cells vertically, the new structure arranges NAND-type cells horizontally. The press release indicated that this new structure makes it possible to develop 3D flash memory with high bit density and reliability at low cost.

(Photo credit: Kioxia)

SK hynix Inc announced today that it recorded 17.5731 trillion won in revenues, 7.03 trillion won in operating profit (with an operating margin of 40%), and 5.7534 trillion won in net profit (with a net margin of 33%) in the third quarter this year.

According to the third-quarter financial report released today by SK hynix, the company posted record-breaking figures, including revenues of 17.5731 trillion won, an operating profit of 7.03 trillion won (with an operating margin of 40%), and a net profit of 5.7534 trillion won (with a net margin of 33%) for the third quarter of this year.

SK hynix’s financial report shows that quarterly revenues hit an all-time high, exceeding the previous record of 16.4233 trillion won in the second quarter of this year by over 1 trillion won. Both operating profit and net profit also surpassed the records set during the semiconductor boom in the third quarter of 2018, which were 6.4724 trillion won and 4.6922 trillion won, respectively.

SK hynix emphasized that the demand for AI memory continued to be strong centered on data center customers, and the company marked its highest revenue since its foundation by expanding sales of premium products such as HBM and eSSD. In particular, HBM sales showed excellent growth, up more than 70% from the previous quarter and more than 330% from the same period last year.

As sales increased mainly on highly profitable premium products, the average selling price (ASP) of both DRAM and NAND rose in the mid 10% range compared to the previous quarter, which made the company mark the highest operating profit.

While the demand of memory for AI servers such as HBM and eSSD has grown noticeably this year, SK hynix predicts that this trend will continue next year. This is because generative AI is developing into a multi-modal1 form and global big tech companies continue to invest to develop artificial general intelligence (AGI).

SK hynix also forecasts that the PC and mobile product markets, which had been slow to recover demand compared to memory for AI servers, will be on a steady growth path as well next year as AI memories optimized for each device are released.

As a result, the company will continue to focus on profitability by increasing sales centered on high value-added products based on its world-leading technology in AI memory.

In the DRAM area, SK hynix is continuing the rapid transition from existing HBM3 to 8-layer HBM3E products. The company also plans to start supplying 12-layer HBM3E products, which were mass-produced last month, in the fourth quarter as scheduled. This makes HBM sales, which accounted for 30% of total DRAM revenues in the third quarter, expected to reach 40% in the fourth quarter.

For NAND, the company plans to expand sales of high-capacity eSSD, which is rapidly increasing market demand, while focusing on investment efficiency and production optimization.

“SK hynix has solidified its position as the world’s No.1 AI memory company by achieving the highest business performance ever in the third quarter of this year.” said Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK hynix. “We will continue to maximize profitability while securing stable revenues by taking flexible product and supply strategies in line with market demand.”

(Photo credit: SK hynix)

Ahead of SK hynix’s Q3 earnings announcement on October 24^th, the market expects it may see a surge in quarterly operating profit driven by HBM, potentially leading the company to outperform Samsung’s semiconductor division. Therefore, there is growing interest in SK hynix’s next move.

In order to maintain its leadership in the memory sector amid heated competition from China, SK hynix is reportedly shifting its focus to high-value technologies such as HBM4 and Compute Express Link (CXL), according to Korean media outlet Pinpoint News and Tom’s Hardware.

This shift is motivated by a highly competitive memory market, where Chinese firms are ramping up their production capabilities and adopting aggressive pricing strategies to gain share, Tom’s Hardware notes.

For instance, a previous report by ZDNet mentions that Chinese memory manufacturers like CXMT (Changxin Memory Technologies) are aggressively expanding production, which could negatively affect profitability in the traditional DRAM market. Established in 2016, CXMT has become China’s largest DRAM producer with government backing.

Both Samsung and SK hynix are said to be closely monitoring these developments, and counting on high-valued technologies like HBM4 and CXL to unlock a new wave of growth momentum.

It is worth noting that both memory giants have teamed up with TSMC on HBM4, as they attempt to incorporate customized features requested by major clients, counting on TSMC to manufacture more powerful logic dies, the component that functions as the brain of an HBM chip.

Per SK hynix’s product roadmap, the company plans to launch 12-layer stacked HBM4 in the second half of 2025 and 16-layer in 2026.

Samsung, which is struggling with the 12-Hi HBM3e verification with NVIDIA, also aims high for HBM4 to turn the tide. A previous report by The Elec indicates that Samsung targets to tape out HBM4 by year-end, while eyeing the mass production by the end of 2025.

On the other hand, CXL is a next-generation interface that efficiently connects CPUs, GPUs, and memory in high-performance computing systems. According to Pinpoint News, by applying CXL to existing memory modules, capacities can be expanded by more than ten times, makes it extremely suited for the demand of the AI era.

SK hynix is also focusing on CXL memory, which is gaining attention as the next-generation AI memory following HBM. Citing SK hynix CEO Kwak Noh-Jung’s remarks, a report by ZDNet suggests that the memory giant plans to launch products like CXL and LPCAMM tailored to customers’ needs, as the results will begin to materialize around next year.

In the meantime, Samsung reportedly aims to begin mass production of a 256GB CMM-D, compatible with the CXL 2.0 protocol, by the end of 2024, according to Tom’s Hardware. In its own words, Samsung’s CMM-D is a memory expander built with next-generation CXL technology, which seamlessly connects multiple processors and devices, increasing memory capacity thus optimizing memory management.

Read more

• [News] Samsung’s Next Move? Early HBM4 Mass-production and 2nm Foundry Solutions Could Be the Cure
• [News] SK hynix Reportedly to Tape-out HBM4 in October, Paving the Way for NVIDIA’s Rubin

(Photo credit: SK hynix)

According to TrendForce’s latest memory spot price trend report, regarding DRAM, spot prices for DDR5 products have finally stabilized this week as contract prices have room for further hikes. As for NAND flash, the story seems to be different as the wave of price slashes is only going to become even more apparent as China’s Double 11 shopping festival approaches. Details are as follows:

DRAM Spot Price:

Regarding DDR5 products, spot prices have stabilized this week as contract prices have room for further hikes, and there have also been occasional small price hikes in spot transactions. As for DDR4 products, spot prices show signs of stabilization but have experienced the same kind of increase as DDR5. Overall, demand remains weak for consumer products, suggesting further price drops are possible. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has fallen by 0.31% from US$1.911 last week to US$1.905 this week.

NAND Flash Spot Price:

The reduction of inventory has become the priority for the spot market that is currently experiencing sluggishness in demand and purchase sentiment, seeing how truncations have been frequently happening among retail and channel markets, where several module houses of a larger scale are even selling their client SSD at a loss just to get rid of existing inventory. This wave of price slashes is only going to become even more apparent as China’s Double 11 shopping festival approaches. Spot market prices are thus expected to remain on the downward trajectory. 512Gb TLC wafers have dropped by 0.08% this week, arriving at US$2.493.

While Samsung is struggling to catch up with SK hynix on its HBM3e progress, it would also be one of the company’s top priorities to retain talent. According to the report by Korean media outlet The Elec, around 200 Samsung employees have been flocking to apply for three job openings posted by SK hynix.

Citing sources familiar with the matter, the report indicates that a recent SK hynix job posting seeking three experienced etching engineers attracted applications from around 200 Samsung employees.

As the majority of Samsung’s qualified fab engineers applied for the position, this high number of Samsung applicants has drawn attention across the industry, as it is highly unusual for so many to apply for such a role, the report notes.

Previously open to those with less than three years of experience, the program of SK hynix, known as Junior Talent, has expanded its criteria to include engineers with up to five years of experience, counting Master’s and PhD studies as part of their professional background. The adjustment has attracted Samsung engineers with limited experience, according to the report.

Following the program’s expansion, the number of applicants from Samsung significantly increased, sources revealed.

To provide additional background information, the report points out that the number of Samsung semiconductor engineers leaving for competitors or government-backed research institutes seems to be growing.

For instance, the Korea Electronics Technology Institute (KETI) recently posted a job opening for three research positions, and attracted around 50 PhD-level engineers from Samsung’s semiconductor division, the report suggests. Sources cited by the report also note that all eight of KETI’s recent hires had previously worked at Samsung.

It is worth observing that whether this is a long-term employee mass “exodus” or it is merely a temporary trend within a company already known for higher turnover compared to other domestic firms, the report notes.

A former Samsung Semiconductor employee told The Elec that while Samsung once offered the highest salaries in the industry, its compensation today only slightly exceeds that of competitors, and only when factoring in bonuses.

On the other hand, for Samsung employees, the jobs in jeopardy may not simply be those mid-level positions. After reporting disappointing third-quarter earnings forecast, a report by the Korea Economic Daily notes that the company is set to significantly reduce its chip executive positions and reorganize its semiconductor-related operations.

According to the information cited by the report, as of the second quarter, Samsung’s DS division had 438 executives, making up 38% of the company’s total 1,164 executives. Notably, this number is more than double that of the current HBM leader, SK hynix, which has 199 executives.

Read more

• [News] Lagging behind SK hynix in HBM, Samsung Plans Significant Year-end Cuts to Chip Executives

(Photo credit: Samsung)