Rumors have been circulating for a while that China’s tech giants are capable of manufacturing chips in advanced nodes even without the need for extreme ultraviolet (EUV) lithography machines by ASML, and that local foundry SMIC has reportedly produced 5nm chips for Huawei. Now there seems to be a new member joining the ranks of the elite. According to the reports by MyDrivers and Wccftech, Xiaomi has successfully taped out its first 3nm SoC.

Though more details are yet to be confirmed, Wccftech indicates that it is possible that Xiaomi will launch the 3nm chipset sometime next year.

Xiaomi, according to the reports, has been developing its own custom chipsets for years. The first product is believed to be Surge S1, which was released with the Mi 5c smartphone in 2017. The report by MyDrivers suggests that the Surge S1, built on 28nm node, is a 64-bit octa-core processor.

Following the Surge S1, Xiaomi went on to develop several chips, reportedly including the Surge C1, Surge G1, and Surge T1, according to MyDrivers.

The information of Xiaomi’s recent success in its 3nm chip tape-out is reportedly disclosed by Tang Jianguo, Chief Economist of Beijing Municipal Bureau of Economy and Information Technology, at Beijing Satellite TV, MyDrivers notes. Citing Tang’s remarks, Wccftech indicates that the achievement is described as a historic milestone for China.

Wccftech further notes that as companies like Huawei have been prohibited from doing business with TSMC or Samsung due to U.S. trade sanctions, if Xiaomi does have reached the tape-out stage for its 3nm chipset, it could enable other Chinese companies, including Huawei, to leverage this technology in their devices.

However, more details are yet to be confirmed, as there are no updates on whether the SoC will use TSMC’s N3E process or the more advanced N3P node, according to Wccftech. Additionally, details about the chipset’s CPU cluster, GPU, or whether it will feature ARM designs or a custom architecture remain unknown. Therefore, it would be better to approach this rumor with caution.

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(Photo credit: Xiaomi)

The global semiconductor market is nearing the end of its inventory cycle. With the rise of AI-related applications, new energy vehicles, 5G, high-performance computing, and other emerging sectors, industry experts estimate that the global semiconductor industry could reach a valuation of $1 trillion by around 2030.

Recently, new signals have emerged from various regions globally, including China, South Korea, and Japan. Based on the changing data, the growth in different sectors reflects shifts in supply and demand, indicating a widespread recovery trend in the semiconductor industry.

South Korea: Memory Chip Exports Surge by 60.7% YoY

On October 14, local time, data from South Korea’s Ministry of Science and ICT showed that boosted by record semiconductor sales, South Korea’s ICT (Information and Communication Technology) exports in September 2024 increased by 24% year-on-year to 22.36 billion USD(about 160 billion RMB), marking the 11th consecutive month of growth and the second-highest monthly figure on record.

In the semiconductor sector, South Korea’s semiconductor exports amounted to 13.63 billion USD (about 96.5 billion RMB) in September 2024, a historical high, with a 36.3% year-on-year increase.

Notably, memory chip exports surged 60.7% year-on-year to 8.72 billion USD, a nearly 20% increase compared to the previous month. System semiconductor exports rose 5.2% year-on-year to 4.37 billion USD. The Ministry highlighted that the demand for high-bandwidth memory (HBM) and other high-value-added products has fueled significant growth in memory semiconductor exports.

South Korea is home to two of the world’s largest memory manufacturers: Samsung Electronics and SK Hynix. According to TrendForce, Samsung and SK Hynix occupy the top two spots globally in the DRAM and NAND Flash markets, followed by Micron. Hence, South Korea’s semiconductor sector remains a focal point for the industry.

Additionally, the memory market has experienced significant fluctuations this year, with concerns about future trends.

TrendForce data indicated that before the third quarter of 2024, demand for consumer products remained weak, with AI servers driving the primary demand for memory. However, as HBM gains more market share, it is crowding out the capacity for existing DRAM products, leading suppliers to maintain certain pricing levels for contracts. Although server OEMs have maintained momentum in placing orders, smartphone brands are still cautious.

TrendForce forecasts that the growth rate of memory prices will significantly slow in the fourth quarter. Conventional DRAM prices are expected to increase by 0% to 5%, but with HBM accounting for a larger proportion of sales, the overall DRAM price is estimated to rise by 8% to 13%, marking a noticeable slowdown compared to the previous quarter.

China: Integrated Circuit Exports Grow by 22%

According to recent statistics from Chinese customs, China’s total imports and exports reached 32.33 trillion RMB in the first three quarters of 2024, up by 5.3% year-on-year. Of this, exports grew by 6.2% to 18.62 trillion RMB, and imports increased by 4.1% to 13.71 trillion RMB.

In terms of exports, China’s exports of mechanical and electrical products reached 11.03 trillion RMB in the first three quarters, an increase of 8%, accounting for 59.3% of total exports. Notably, high-end equipment exports grew by 43.4%, while exports of integrated circuits, automobiles, and household appliances rose by 22%, 22.5%, and 15.5%, respectively.

In terms of imports, China’s integrated circuit and auto parts imports grew by 13.5% and 4.6%, respectively, in the first three quarters. Consumer goods imports exceeded 1.3 trillion RMB.

Regionally, China’s trade with over 160 countries and regions has grown, indicating steady diversification. Trade with Belt and Road Initiative countries reached 15.21 trillion RMB, growing by 6.3% and accounting for 47.1% of China’s total trade. Trade with RCEP members grew by 4.5%, with ASEAN trade increasing by 9.4%. Meanwhile, trade with the EU and the U.S. grew by 0.9% and 4.2%, respectively.

Japan: Semiconductor Equipment Exports to China Surge by 61.6%

Data released by Japan’s Ministry of Finance shows that in August 2024, Japan’s semiconductor equipment exports to China surged by 61.6%, reaching 179.9 billion yen (around $1.29 billion).

The total weight of equipment exported from Japan to China in August was 6,742 tons, a 41% increase compared to the previous month. Machinery accounted for 23.2% of Japan’s total exports to China, with semiconductor equipment making up 11.9%.

These figures underscore Japan’s critical role in the global semiconductor supply chain.

Additionally, ASML, the Dutch photolithography giant, previously reported that its exports to China grew by 21% quarter-on-quarter in Q2 2024, reaching 2.3 billion euros. Earlier data showed that Asia accounted for 84% of ASML’s 2023 revenue.

(Photo credit: istock)

In September, Qualcomm was rumored to be investigating the possibility of acquiring parts of Intel’s design business to enhance its product portfolio, as it is reportedly interested in Intel’s PC business. Now a latest report by Bloomberg indicates that the smartphone chip giant might wait until after the US presidential election in November to make its decision.

Citing sources familiar with the situation, the report notes that Qualcomm hopes to seek greater clarity on the incoming president’s policies, as the new administration could significantly affect the antitrust environment and US-China relations.

The sources further note that Qualcomm may even choose to wait until after the new US president’s inauguration in January, 2025, to determine its next move regarding a potential Intel transaction due to the complexities involved.

The merger of the two tech giants would inevitably attract significant scrutiny from antitrust regulators globally, which includes China, as it is a crucial market for both, Bloomberg suggests. Therefore, it is understood that Qualcomm informally consulted with antitrust regulators in China to assess their position on any possible deal in September, though no response has been received, according to the report.

On the other hand, in the U.S. market, as Intel plays a central role in Washington’s strategy for revitalizing domestic chip manufacturing, political support would be essential for any potential deal, Bloomberg notes.

The report indicates that Intel is set to receive the largest share of funding from the 2022 Chips and Science Act, provided it proceeds with its factory construction plans. Qualcomm has been in discussions with US regulators and believes that an all-American merger could alleviate any concerns, according to sources familiar with the situation cited by the report.

It is also worth noting that submitting a bid after the election could provide Qualcomm with additional advantages, as it can wait until Intel to release its third-quarter earnings later this month, Bloomberg says. If Intel’s stock price continues to slide after its upcoming financial announcement, Qualcomm could benefit by getting a bargain.

According to the analysts’ projection quoted by Bloomberg, Intel is likely to suffer another net loss of over USD 1 billion this time around. The struggling chipmaking company reported a USD 1.6 billion net loss for the April to June quarter.

Representatives from Qualcomm and Intel declined to comment, and the State Administration for Market Regulation in China did not respond to requests for feedback, according to Bloomberg.

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(Photo credit: Qualcomm)

According to reports from the Commercial Times, the PC chip supply chain has seen a surge in activity as government subsidies in mainland China have expanded to cover major cities. This has prompted brands to increase their orders, boosting short-term demand for the current quarter. Related IC design companies are expected to benefit from this trend.

The report reveals that the supply chain is responding to the rollout of home appliance subsidies in China, which initially covered only select cities. As other regions follow suit, demand for replacement and upgrades has surged, prompting brands to increase their stock, leading to more orders for IC suppliers.

However, some IC companies remain cautious, believing that the current demand surge may simply be pulling forward orders that would have been placed in the first quarter of next year. Since the subsidies end by the close of this year, they fear this could lead to a short-lived boom.

On the other hand, more optimistic players believe that as major IC manufacturers like AMD, Qualcomm, and Intel roll out NPUs with over 40 TOPS of computing power, combined with post-pandemic replacement demand, the market will see a significant boost. These companies are also expected to launch products at various price points, making AI-powered PCs more affordable in the coming year.

The report also noted that the PC market is expected to become more competitive as both x86 and Arm architectures begin supporting new AI applications. It is understood that some companies will start purchasing Arm-based PCs next year, signifying that Arm-based PCs have successfully entered the commercial sector, which will have a positive impact on building a complete ecosystem in the future.

Industry sources cited by the Commercial Times believe Qualcomm will be the first to benefit, while MediaTek is gearing up, with its chips expected to debut in the second quarter of next year and enter mass production in the third quarter.

(Photo credit: Samsung)

Samsung’s next-generation flagship phone, the Galaxy S25 series, is set to debut in three months. According to current market rumors, the lineup will still include the S25, S25+, and S25 Ultra models. In addition, Samsung is expected to release a “lite flagship” version, the Galaxy S25 FE. As reported by SamMobile, the S25 FE will be powered by MediaTek’s Dimensity chipset and is slated for release by the end of next year.

Prior to this report, there had been widespread speculation that MediaTek’s Dimensity 9400 would be used in the Galaxy S25 series launching early next year.

However, a recent update from SamMobile, citing @Jukanlosreve on platform X, revealed that the negotiations between Samsung and MediaTek, which initially aimed to include the Dimensity chip in the Galaxy S25, have shifted to placing the Dimensity chip in the S25 FE instead.

The latest information suggests that only the S25 FE will feature the MediaTek Dimensity chipset, while the rest of the S25 series will exclusively run on Qualcomm’s Snapdragon processors.

@Jukanlosreve did not specify the exact model of the chipset for the S25 FE, but SamMobile speculates that it will be the Dimensity 9400, MediaTek’s latest fourth-generation flagship mobile chipset, built on TSMC’s 3nm process, designed to compete with Qualcomm’s new Snapdragon 8 Elite.

(Photo credit: MediaTek)