Amid concerns on its progress of advanced nodes, Samsung’s DS Division recorded an operating profit of 3.86 trillion won in the third quarter, marking a 40% decline from the previous quarter. Now it seems that the struggling giant plans to further scale down on foundry production, aiming to decrease operations to about 50% by year-end, according to South Korean media outlet the Chosun Daily.

The report notes that Samsung’s semiconductor division is temporarily closing down some production lines at its foundry facilities in response to weak orders from U.S. tech companies and Chinese fabless firms.

According to sources familiar with the situation cited by the report, Samsung has already closed more than 30% of its 4nm, 5nm, and 7nm production lines at Pyeongtaek Line 2 (P2) and Line 3 (P3). Furthermore, the company is said to be carefully keeping an eye on customer orders, and planning to gradually halt operations, possibly shutting down approximately 50% of its facilities by year-end.

Though the financials of its foundry business has not been disclosed separately, analysts project that the chipmaker’s foundry business suffered losses of around 1 trillion won in the third quarter, leading the company to implement cost-cutting measures by shutting down portions of its production lines, according to the report.

Instead of maintaining production lines at low utilization rates, sources cited by the report indicate that Samsung has opted to shut down operations to save on electricity costs more effectively.

The report attributes Samsung’s decision to weaker-than-anticipated orders from Chinese fabless firms, which had previously represented a significant share of Samsung’s 4nm and 5nm production volumes. U.S. trade restrictions on China’s semiconductor sector have led some Chinese fabless companies to postpone their projects ahead of the U.S. presidential election, the report indicates.

The move does raises concerns on whether the company’s technological gap with foundry leader TSMC may be widening. Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, observed that while Samsung seems to prioritize on memory chips, the foundry division has been sidelined, according to the report.

However, in its latest financial announcement, Samsung states that it plans to leverage the mass production on the 2 nanometer (nm) Gate-All-Around (GAA) process to win new clients. The company aims to mass produce 2nm in 2025 and 1.4nm by 2027.

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(Photo credit: Samsung)

Samsung Electronics released its third-quarter earnings on October 31, reporting a sharper-than-expected profit despite a substantial decline in profits from its flagship semiconductor business. Notably, Samsung’s senior management emphasized its continued focus on high-end chip production and disclosed progress in major supply deals. This includes a potential NVIDIA certification for its HBM3E which could boost performance in the fourth quarter.

According to reports from Commercial Times, Samsung Executive Vice President Jaejune Kim addressed analysts about high-end memory chips used in AI chipsets, stating that while they previously mentioned a delay in HBM3E’s commercialization, they have made meaningful progress in product certification with key clients. As a result, they expect HBM3E sales to improve in the fourth quarter and plan to expand sales to multiple customers.

Though Samsung did not disclose client names, analysts believe this certification likely refers to NVIDIA, which commands 80% of the global AI chip market.

According to Economic Daily News, Samsung reported significant revenue growth in high-bandwidth memory (HBM), DDR5, and server storage products, with expectations for improved performance in its semiconductor business this quarter.

Although demand for mobile and PC memory chips may decline, the growth in AI is expected to sustain robust demand. Demand for AI and data center products, including memory for both AI and traditional servers, is projected to remain strong and stable through next year.

Additionally, Kim tated that the company would flexibly reduce production of traditional DRAM and NAND chips to align with market demand and expedite the shift to advanced process nodes.

The same report from Economic Daily News indicated that Samsung plans to develop and mass-produce HBM4 in the second half of this year. Next year, its memory division will focus on HBM and server SSDs, and there are hints of potential collaboration with TSMC to meet the diverse needs of HBM clients.

(Photo credit: Samsung)

Intel posted its third-quarter earnings earlier on October 31. Recording a lackluster performance with quarterly revenue declining 6% year-over-year to USD 13.3 billion and a net loss of USD 16.99 billion, the struggling giant manages to impress the market with an upbeat guidance for the fourth quarter, with revenue expected to rise to USD 13.3 billion to USD 14.3 billion, according to its press release.

According to a report by Reuters, the better-than-expected outlook originates from the company’s optimism about its future of PC and server business.

As a leading PC chipmaker, Intel has seen a boost from the introduction of on-device AI features and a new Windows update cycle, which has rekindled demand for PCs following a prolonged slump. This has helped Intel exceed Wall Street’s modest expectations, according to Reuters.

New External 18A Design-wins; TSMC Used “Selectively” in the Future

It is worth noting that Intel highlighted the positive progress on its advanced nodes. The report, citing CEO Pat Gelsinger during a post-earnings call, notes that the high-volume production of Intel’s 18A node is scheduled to begin in the latter half of 2025, with most production dedicated to Intel’s own products. The company suggests that there are several new external Intel 18A and advanced packaging design wins.

Gelsinger also highlighted the role of TSMC as its foundry partner, adding that over the coming years, foundry revenue will largely stem from Intel’s products, with contract manufacturer TSMC being used “selectively” in the future, according to the report.

Restructuring Charges Weighs on Q3 Earnings

In the third quarter, Intel reported a loss of USD 0.46 per share on revenue of USD 13.3 billion. This represents a significant decline from the previous year, when the company posted earnings of USD 0.41 per share and revenue of USD 14.1 billion in the same quarter.

Restructuring charges meaningfully impacted Q3 profitability as the company took important steps toward its cost reduction goal, said David Zinsner, Intel CFO.

According to CNBC, in line with its cost-cutting strategy, Intel incurred USD 2.8 billion in restructuring charges this quarter, alongside USD 15.9 billion in impairment costs, partly due to accelerated depreciation of Intel 7 process node manufacturing assets and goodwill impairment within its Mobileye division. As a result, its adjusted gross margin dropped to 18%, compared with 38.7% of the previous quarter.

The report by CNBC reveals that on October 28^th, Intel disclosed in a filing that its board’s audit and finance committee approved measures to cut costs and capital expenses, including reducing its workforce by 16,500 and downsizing its real estate footprint. These job cuts, initially announced in August, are expected to be fully implemented by the fourth quarter of 2025.

Data Center Remains the Sole Growth Driver in Q3

Revenue from Intel’s Client Computing Group, which encompasses its PC chips for desktops and laptops, declined by 7% year-over-year to USD 7.3 billion.

In the data center segment, which includes AI chips, Intel reported a 9% year-over-year increase in revenue to US 3.3 billion.

Meanwhile, revenue from Intel’s contract manufacturing (foundry) business dropped to USD 4.4 billion, marking an 8% year-over-year decline.

2025 CapEx: Between USD 12 billion and USD 14 billion

On the other hand, CFO David Zinsner shared with Reuters that Intel plans USD 12 billion to USD 14 billion in capital expenditures for 2025.

In the previous earnings call, Intel has announced an over 20% reduction on its capex in 2024, bringing gross capital expenditures in 2024 to between USD 25 billion and USD 27 billion, with net capital spending in 2024 expected to fall between USD 11 billion and USD 13 billion.

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(Photo credit: Intel)

Recently, the Nuclear Safety and Environmental Engineering Technology Institute at the China National Nuclear Corporation (CNNC) has successfully mass-produced the world’s first X/γ nuclear radiation dose detection chip.

According to China National Nuclear Corporation (CNNC), the chip measures X/γ radiation dose rates ranging from 100 nSv/h (nanosieverts per hour) to 10 mSv/h (millisieverts per hour) and detects energy levels from 50 keV (kiloelectronvolts) to 2 MeV (megaelectronvolts). With dimensions of only 15mm x 15mm x 3mm, it operates within a temperature range of -20°C to 50°C and has an ultra-low power consumption of 1mW (milliwatts).

Despite its compact size, the chip’s sensitivity is comparable to that of a conventional Geiger-Müller tube used for environmental measurements.

This chip holds extensive application potential. By referring to its datasheet, users can conduct simple secondary development to apply it in radiation dose monitoring for nuclear-related workplaces, personnel, and environmental monitoring.

The chip’s standardized interface design allows it to be used as a general-purpose radiation sensor, adaptable for reflow soldering, and easily integrated into various smart devices such as smartphones, tablets, smart helmets, and drones. It can thus serve as a core component in developing intelligent terminals with radiation detection capabilities.

The research team has overcome key technological hurdles in crystal integration, packaging temperature, and mass testing, completing the entire process from chip design and wafer fabrication to integration, packaging, and testing. This has enabled stable production techniques for the chip, allowing it to be mass-produced in authorized factories with the necessary qualifications.

 
(Photo credit: China National Nuclear Corporation)

On October 30, local time, Siemens announced that the company had signed an agreement to acquire Altair Engineering, a leading software provider in the industrial simulation and analytics market. This move strengthens Siemens’ position as a leading technology company and its leadership in the industrial software field.

Siemens AG stated that the combination of Altair’s capabilities in simulation, high-performance computing, data science, and artificial intelligence with Siemens Xcelerator will create the world’s most comprehensive AI-driven design and simulation product portfolio.

This transaction is expected to increase Siemens’ digital business revenue by more than 8%, adding approximately 600 million EUR to the 7.3 billion EUR digital business revenue reported in Siemens’ fiscal year 2023.

The transaction is anticipated to close in the second half of 2025. Altair, an information technology company headquartered in Troy, Michigan, USA, was listed on the Nasdaq in 2017.

Altair primarily provides software and cloud solutions in the fields of simulation and analytics, data science, artificial intelligence (AI), and high-performance computing (HPC). Its main products include HyperWorks, a simulation platform for structural analysis, fluid dynamics, and multidisciplinary optimization; SolidThinking, an innovative solution for product design supporting industrial design and engineering analysis; and Altair Smart Learning, a tool for machine learning and AI.

Originally an engineering consulting firm, Altair gradually expanded into the EDA field, adopting an acquisition strategy similar to other major players in the EDA industry. In 2017, Altair acquired Runtime Design Automation, a company providing tools for CPU, GPU, and system-on-chip (SoC) design engineers who rely on EDA tools.

In 2022, Altair announced the acquisition of Concept Engineering, a supplier of automatic schematic generation tools and electronic circuit and harness visualization platforms. In August 2024, Altair announced the acquisition of all outstanding shares of Metrics Design Automation Inc. (Metrics), further expanding its influence in the EDA sector.

In addition to Siemens’acquisition of Altair, the well-known EDA company Cadence has made successive acquisitions of Invecas and BETA CAE Systems. Notably, another EDA giant, Synopsys, acquired Ansys for as much as 35 billion USD, setting a new record in the industry and attracting wide attention.

Meanwhile, in recent years, facing the global wave of mergers and acquisitions in the EDA industry, Chinese EDA companies have been catching up. Through mergers and acquisitions, they are accelerating their growth. According to incomplete statistics, several domestic companies, including Empyrean, Semitronix, X-EPIC, Primarius, Rigoron, and S2C, have implemented acquisition strategies to expand and enrich their technology product lines, enhancing their core competitiveness and market influence.

(Photo credit: Siemens)