According to a report from Korean media ZDNet Korea, Chinese memory manufacturers like CXMT (Changxin Memory Technologies) are aggressively expanding production, which could negatively affect profitability in the traditional DRAM market. Both Samsung and SK hynix are said to be closely monitoring these developments.

Established in 2016, CXMT has become China’s largest DRAM producer with government backing, focusing on traditional DRAM and preparing to enter the HBM market.

Reportedly, CXMT has rapidly increased its DRAM production capacity, from 70,000 wafers per month in 2022 to 120,000 in 2023, and is projected to reach 200,000 wafers this year.

CXMT’s main products include 17nm and 18nm DDR4 and LPDDR4, with its latest offerings being 12nm DDR5 and LPDDR5X, which the company is also developing. Its aggressive DRAM expansion could negatively impact sales and profits for Korean memory manufacturers.

According to TrendForce’s data, the spot price of 16Gb DDR4 increased from $3 in the second half of 2023 to $3.50 in the first half of this year, before falling back to $3.30 in the second half of 2024.

For DDR5, prices have increased from $4.20 in October 2023 to over $4.50 in the first half of this year, approaching $5 in the second half.

By the end of August, the price premium of DDR5 over DDR4 had surged to 53.9%, up significantly from 36.9% six months earlier.

Per a recent report from Nomura Securities cited by ZDNet Korea, the rapid expansion of Chinese companies is expected to negatively impact the memory industry’s profitability, necessitating preparations for potential disruptions. CXMT’s production now accounts for about 5% of the market, potentially influencing prices.

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(Photo credit: CXMT)

No eternal allies. No perpetual enemies. The old proverb seems so true when it comes to the semiconductor industry, when the world’s top foundry, TSMC, announced the collaboration with its rival Samsung, the second largest foundry globally, on the development of HBM4, according to the reports by Korean media outlets the Korea Economic Daily and Business Korea. According to analysts cited by the Korea Economic Daily, it would mark their first partnership in the AI chip sector.

Citing the remarks of Lee Jung-bae, Head of the Memory Business Division at Samsung Electronics at SEMICON Taiwan, the reports note that in order to advance in HBM, Samsung is preparing over 20 customized solutions in collaboration with various foundry partners. However, Lee declined to comment on which specific foundry they were partnering with.

The answer has been revealed when on September 5^th, Dan Kochpatcharin, Head of Ecosystem and Alliance Management at TSMC, confirmed that the two companies are working together on developing a buffer-less HBM4 chip.

According to Business Korea, buffer-less HBM is a product that eliminates the buffer used to prevent electrical issues and manage voltage distribution, which Samsung targets to introduce with HBM4. The innovation is expected to enhance power efficiency by 40% and reduce latency by 10% compared to existing models.

The reports note that the main consideration Samsung chooses to team up with TSMC would be the attempt to incorporate customized features requested by major clients like NVIDIA and Google.

Although Samsung can offer a full range of HBM4 services, including memory production, foundry, and advanced packaging, the company aims to utilize TSMC’s technology to attract more clients, according to sources cited by the reports.

The manufacturing process for HBM4 differs from previous generations, with the logic die, the component that functions as the brain of an HBM chip, may now be produced by foundry companies rather than memory manufacturers.

Earlier in April, SK hynix, the current HBM leader as well as Samsung’s biggest rival on memory, announced the partnership with TSMC on HBM4 development and next-generation packaging technology.

Though months later than SK hynix and Micron, Samsung’s 8-layer HBM3e has reportedly started shipments to NVIDIA. It targets to gain a competitive edge with its rival in HBM4, eyeing to enter mass production by late 2025.

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• [News] Samsung Signals Will to Collaborate with Other Foundries on Basedie
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(Photo credit: Samsung)

At the SEMICON Taiwan 2024, Samsung’s Head of Memory Business, Jung Bae Lee, stated that as the industry enters the HBM4 era, collaboration between memory makers, foundries, and customers is becoming increasingly crucial.

Reportedly, Samsung is prepared with turnkey solutions while maintaining flexibility, allowing customers to design their own basedie (foundation die) and not restricting production to Samsung’s foundries.

As per anue, Samsung will actively collaborate with others, with speculation suggesting this may involve outsourcing orders to TSMC.

Citing sources, anue reported that SK hynix has signed a memorandum of understanding with TSMC in response to changes in the HBM4 architecture. TSMC will handle the production of SK hynix’s basedie using its 12nm process.

This move helps SK hynix maintain its leadership while also ensuring a close relationship with NVIDIA.

Jung Bae Lee further noted that in the AI era, memory faces challenges of high performance and low energy consumption, such as increasing I/O counts and faster transmission speeds. One solution is to outsource the basedie to foundries using logic processes, then integrate it with memory through Through-Silicon Via (TSV) technology to create customized HBM.

Lee anticipates that this shift will occur after HBM4, signifying increasingly close collaboration between memory makers, foundries, and customers. With Samsung’s expertise in both memory and foundry services, the company is prepared with turnkey solutions, offering customers end-to-end production services.

Still, Jung Bae Lee emphasized that Samsung’s memory division has also developed an IP solution for basedie, enabling customers to design their own chips. Samsung is committed to providing flexible foundry services, with future collaborations not limited to Samsung’s foundries, and plans to actively partner with others to drive industry transformation.

Reportedly, Samsung is optimistic about the HBM market, projecting it to reach 1.6 billion Gb this year—double the combined figure from 2016 to 2023—highlighting HBM’s explosive growth.

Address the matter, TrendForce further notes that for the HBM4 generation base die, SK hynix plans to use TSMC’s 12nm and 5nm foundry services. Meanwhile, Samsung will employ its own 4nm foundry, and Micron is expected to produce in-house using a planar process. These plans are largely finalized.

For the HBM4e generation, TrendForce anticipates that both Samsung and Micron will be more inclined to outsource the production of their base dies to TSMC. This shift is primarily driven by the need to boost chip performance and support custom designs, making further process miniaturization more critical.

Moreover, the increased integration of CoWoS packaging with HBM further strengthens TSMC’s position as it is the main provider of CoWoS services.

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(Photo credit: TechNews)

SK hynix President Justin Kim shared insights on SK hynix’s current memory products and HBM-related offerings in a speech titled “Unleashing the Possibilities of AI Memory Technology.” Per a report from TechNews, he announced at Semicon Taiwan that the company would begin mass production of 12-stack HBM3e by the end of this month, marking a pivotal moment in the HBM battlefield.

He also stated that AI development is only at its first stage, with future growth expected to reach a fifth stage, where AI will interact with humans through intellect and emotion. Kim outlined AI’s key challenges, including power, heat dissipation, and memory bandwidth requirements.

The biggest challenge currently, according to Kim, is power shortages, with data centers expected to need twice the power they do now. Relying solely on renewable energy will not meet this demand, and increased power use will also generate more heat, requiring more efficient heat dissipation solutions.

Thus, SK hynix is working on AI memory that is more energy-efficient, lower in power consumption, and has greater capacity, while also offering solutions tailored to different applications.

Kim then shared the latest progress on HBM3e, noting that SK Hynix was the first supplier to produce 8-layer HBM3e and will begin mass production of 12-layer HBM3e by the end of the month. Additionally, SK Hynix introduced its latest products in DIMM, enterprise SSDs (QLC eSSD), LPDDR5T, LPDDR6, and GDDR7 as well.

Regarding technology development, Kim highlighted that HBM4 will be the first product based on a base die, combining SK hynix’s advanced HBM technology with TSMC’s cutting-edge manufacturing to achieve unparalleled performance. Mass production schedules will be aligned with customer demands.

On a global scale, Kim announced the establishment of a new facility in Yongin, South Korea, with plans to begin mass production in 2027, positioning Yongin as one of the largest and most advanced semiconductor hubs.

Moreover, SK hynix will invest in Indiana, USA, expected to start operations at a new plant in 2028, focusing on advanced HBM packaging.

Eventually, Kim stated that SK hynix will concentrate on AI business, looking to build AI infrastructure with SK Group. This includes integrating power, software, glass substrates, and immersion cooling technology, and working to become a core player in the ecosystem, overcoming challenges with partners to achieve goals in the AI era.

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As Samsung plans to unveil its next-gen flagship smartphone, Galaxy S25 series, in early 2025, more details regarding the product have surfaced. Months ahead of the launch, Samsung is said to abandon the dual-processor strategy and equip the entire series with Qualcomm’s new Snapdragon 8 Gen 4 processor. The latest rumor, however, may be related to the yield issue in its 1b DRAM intended to be used in the Galaxy S25 series.

According to a report by Korean media outlet ZDNet, the tech giant might be facing difficulties in its cutting-edge mobile DRAM, the 1b DRAM (5^th-generation 10nm-class DRAM). Last month, Samsung Electronics’ Mobile eXperience (MX) Division reportedly raised concerns with the Device Solutions (DS) Division about delays in the delivery of 1b-based LPDDR (low-power DRAM) samples.

Samsung has been developing 1b DRAM for a period of time, as the company is said to begin mass production of the 16Gb 1b DDR5 DRAM in May last year, ZDNet notes. Afterwards, Samsung started to develop the 32Gb 1b DRAM in September, targeting the high-performance computing (HPC) market, the report states.

Meanwhile, it has been working on developing 1b LPDDR products for mobile devices, primarily targeting the Galaxy S25 series.

However, recent issues seem to have disrupted these plans, the report suggests. It notes that while the DS Division was expected to deliver 1b LPDDR samples in various capacities, including 12Gb and 16Gb, to the MX Division by last month, they were unable to provide the necessary quantities due to yield problems.

Industry experts cited by the report indicate that semiconductors generally require a yield rate above 80% to support stable and cost-effective mass production and supply. While the exact yield rate of Samsung’s mobile 1b DRAM hasn’t been revealed, it is likely to fall well below the target, which prompts Samsung’s MX Division to reevaluate the schedule and the DRAM adoption plan, the report suggests.

According to a previous report by TheElec, though concerns have been raised regarding its 1b DRAM manufacturing, being ambitious on its HBM development, Samsung targets to tape out HBM4 by the end of this year, while it intends to adopt the 10nm 6th-generation (1c) DRAM to manufacture the memory chip.

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(Photo credit: Samsung)