According to South Korean media The Elec’s report, due to strong demand from Chinese chip manufacturers and wafer foundries, the shortage of photomasks in the market has not eased, and it is anticipated that prices will rise in 2024.

The report notes that most photomask manufacturers, including Japan’s Toppan, DaiNippon Printing, and the U.S.’s Photronics, are currently operating at full capacity with a utilization rate of 100%. Some Chinese chip companies are even willing to pay additional fees to expedite delivery schedules.

In the field of integrated circuits, the function of a photomask is similar to the “film” in a traditional camera. With the collaboration of exposure and development processes in photolithography machines and photoresist, the pre-designed patterns on the photomask are transferred to the photoresist on the substrate, enabling mass production through image replication.

Photomasks play an indispensable role in the semiconductor chip manufacturing process, especially in advanced processes where more intricate circuit patterns require multiple layers of photomasks to aid production. For example, mature processes may require around 30 photomasks, while the latest advanced processes might demand as many as 70 to 80 photomasks to handle.

Currently, Chinese foundry giant SMIC employs Deep Ultraviolet (DUV) technology to produce 7nm chips. Compared to Extreme Ultraviolet (EUV), DUV requires more photomasks for the fabrication of multiple circuit patterns.

Toppan Printing, in its latest quarterly financial report covering July to September, anticipates a continual increase in demand for photomasks throughout 2023. DaiNippon Printing expressed agreement with this assessment in its half-year financial report for the period from April to September.

The graphic dimensions, precision, and manufacturing technology requirements of semiconductor photomasks continue to increase, with only a 3% domestication rate for high-end photomask versions in China. In the preparation of photomasks, the Chinese semiconductor photomask industry faces a situation where high-end equipment and materials are dominated by foreign manufacturers.

In the photomask industry chain, the upstream sector primarily involves equipment, substrates, light-blocking films, and chemical reagents; the midstream sector is photomask manufacturing, and the downstream sector includes chips, flat panel displays, touchscreens, circuit boards, and more.

The urgent demand for domestic substitutes for photomask versions is apparent, and the revenue scale of Chinese photomask manufacturers still has a considerable gap compared to leading overseas manufacturers.

(Photo credit: Toppan)

India could see at least three more semiconductor fabrication units coming up in the next few months with cumulative investments to the tune of USD 8-12 billion, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Tuesday.

India is working hard to get big semiconductor companies to build chip plants in the country with its $10 billion semiconductor program. Global semiconductor giants are considering making factories in India driven by the need to diversify supply chains beyond China and the big demand for tech talents in India.

According to Deccan Herald’s report. At the unveiling of AMD’s global design center in Bengaluru on November 28th, Ashwini Vaishnaw, Union Cabinet Minister for Railways, Telecommunications, Electronics and Information Technology of India, briefed journalists on ongoing negotiations with several local governments to determine precise locations in the following months.

AMD’s global design center plans to host around 3,000 AMD engineers in the coming years, focused on the design and development of semiconductor technology including 3D stacking, artificial intelligence, machine learning, and more. Vaishnaw pointed out that AMD setting up its biggest design center is strong evidence of how much global companies trust India. Besides, Vaishnaw highlighted the achievement of Micron’s semiconductor plant project, which was revealed in June and started construction in September. He said the success of Micron’s initial facility in India has boosted confidence globally.

Apart from global giants’ investment in India, the minister also told about the Semiconductor Lab (SCL) progress in Mohali, mentioned significant headway in the Expression of Interest (EoI) process. He anticipates finalizing matters within the next 5-6 months. The lab is planned to serve as both a research and semi-commercial facility.

The Indian government asserts that a comprehensive microprocessor chip manufacturing initiative is on the horizon in the country. Anil Agarwal, Chairman of Vedanta, anticipates the launch of “Vedanta chips made in India” by 2025, reported by icbank on weixin.

The government envisions establishing a “semiconductor city” in Dholera, Gujarat, covering an area equivalent to Singapore, with Prime Minister Modi expressing confidence in attracting both domestic and international giants to set up manufacturing plants despite the remote location.

The tech hub in Bangalore has played a pivotal role in India’s ascent as a global participant in the semiconductor network, primarily through chip design. Over the past two years, substantial government subsidies have transformed India into a hub for electronic product manufacturing.

India’s Challenges abound in the Actual Chips Manufacture

Despite initiatives like the “production-linked incentive measures” encouraging mobile assembly in India since 2020, chip manufacturing remains a formidable task.

Presently, nearly all cutting-edge chips are produced in Taiwan, with China’s chip investments surpassing those of India. Vedanta Group’s Agarwal plans to kickstart chip manufacturing within two and a half years, extending invitations to global chip manufacturing experts.

While today’s cutting-edge chips are predominantly manufactured in Taiwan, TSMC has even established a fab in Arizona with the assistance of the U.S. “Chip Act.”

India lacks a historical presence in chip manufacturing and faces a shortage of highly skilled engineers and equipment. Nevertheless, the government aims to achieve what companies like TSMC took decades to accomplish through substantial spending and capital investment promotion. However, China’s significant investments in domestic chip manufacturers, following the U.S. ban tightening China’s semiconductor development last October, far exceed India’s investments in local companies.

With the goal of establishing India’s inaugural semiconductor foundry, Mr. Agarwal of Vedanta Group aims to commence chip manufacturing within two and a half years, extending invitations to international talents like David Reed and Texas Instruments.

Agarwal aspires to attract around 300 foreign experts from East Asia and Europe to Gujarat. The manufacturing of microchips also necessitates a significant amount of customized infrastructure, with Vrishno, the responsible official, indicating that India’s largest chemical plant near Dholera can produce the specialized gases and liquids required for any chip factory’s operation.
(Image: AMD India)

On November 28, CXMT made a highlight in the Chinese market by unveiling its latest DRAM LPDDR5. It becomes the first company in China to self-develop and manufacture such DRAMs. CXMT said it has already received validation from major Chinese smartphone brands like Xiaomi and Transsion, signaling plans for swift market commercialization.

This launch not only improves the quality and cost-effectiveness of applications in personal and business sectors but also accelerates the industrialization of the Chinese DRAM industry, positioning CXMT at the forefront of the LPDDR5 era.

Latest Developments in CXMT’s LPDDR5 Strategy

The “LP” in LPDDR stands for Low Power, representing a type of Synchronous Dynamic Random Access Memory (SDRAM) product with lower power consumption compared to DDR. The JEDEC(Solid State Technology Association) categorizes DRAM into three kinds based on different application needs: Standard DDR, LPDDR, and GDDR. DDR is primarily used in servers and PCs, LPDDR in mobile phones and consumer electronics, and GDDR in image processing.

LPDDR5, the fifth generation of low-power double data rate synchronous dynamic random access memory, is the latest focus for CXMT. The company officially launched its LPDDR5 series, including 12Gb LPDDR5 chips, 12GB LPDDR5 chips with package on package (PoP) packaging, and 6GB LPDDR5 chips with die stacking chip (DSC) packaging.

CXMT’s LPDDR5 chips incorporate robust RAS (Reliability, Availability, and Serviceability) features, utilizing on-die error correction code (ECC) technology for real-time error correction, minimizing system failures, ensuring data security, and enhancing stability.

International Memory Giants Vying for Market Share

In September 2023, Samsung announced the development of a series of Low-Power Compressed Additional Memory Modules (LPCAMM), utilizing LPDDR5X memory. During the “2023 Investor Forum” held in Hong Kong in November, Samsung revealed plans to prepare new memory solutions for the automotive sector, including the new LPDDR5X.

SK Hynix officially supplied customers with 16GB capacity LPDDR5T (Low Power Double Data Rate 5 Turbo) products in November, marking the fastest mobile DRAM product with a transmission speed of up to 9.6Gbps.

Micron introduced LPDDR5X DRAM in 2022, with its LPDDR5X-9600 utilizing the latest 1β process technology. With a maximum capacity of 16GB, its speed is 12% higher than the previously fastest LPDDR5X-8533.

Promising Future for LPDDR5 Market

From the current DRAM market share perspective, TrendForce’s statistics on industry revenue from the second quarter show that Samsung has a market share of 39.6%, SK Hynix has 30.1%, and Micron (25.8%), together accounting for over 95% of the market share. Including Nanya Technology (2%) and Winbond Electronics (0.9%), the top five companies account for 98.4%.

Although industry points out that, compared to global giants, China-produced LPDDR5 currently has certain gaps in terms of capacity, speed, and other aspects, it is essential to note that LPDDR5 is trending towards becoming the mainstream in smartphone products. CXMT’s entry into this field coincides with the boom in LPDDR5 development.

TrendForce’s recent research on LPDDR indicates that LPDDR4X remains predominant in the mainstream market, with LPDDR5(X) focus on the high-end market for smartphones. However, with the introduction of Intel’s new Alder lake platform, LPDDR5(X) is gaining prominence in the laptop sector. It is estimated that the market share of LPDDR5(X) will exceed 25% in 2023.

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• Q4 DRAM Contract Prices Set to Rise, with Estimated Quarterly Increase of 3-8%, Says TrendForce
• [News] CXMT Launches First Domestic LPDDR5, Collaborating with Industry Partners for Market Expansion

According to the South Korean media The Korea Economic Daily’s report, Samsung Electronics has established a new business unit dedicated to developing next-generation chip processing technology. The aim is to secure a leading position in the field of AI chips and foundry services.

The report indicates that the recently formed research team at Samsung will be led by Hyun Sang-jin, who was promoted to the position of general manager on November 29. He has been assigned the responsibility of ensuring a competitive advantage against competitors like TSMC in the technology landscape.

The team will be placed under Samsung’s chip research center within its Device Solutions (DS) division, which oversees its semiconductor business, as mentioned in the report.

Reportedly, insiders claim that Samsung aims for the latest technology developed by the team to lead the industry for the next decade or two, similar to the gate-all-around (GAA) transistor technology introduced by Samsung last year.

Samsung has previously stated that compared to the previous generation process, the 3-nanometer GAA process can deliver a 30% improvement in performance, a 50% reduction in power consumption, and a 45% reduction in chip size. In the report, Samsung also claimed that it is more energy-efficient compared to FinFET technology, which is utilized by the TSMC’s 3-nanometer process.

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• [News] IC Design Companies Seek Advanced Process Second Source, Overview of Competition Between TSMC and Samsung

(Photo credit: Samsung)

On the 28th, Amazon unveiled two AWS-designed chips, Graviton4, a CPU propelling its AWS cloud services, and the second-gen AI chip Trainium2, tailored for large language models. Both chips boast substantial performance upgrades. With a positive market outlook, Amazon is intensifying its competition with Microsoft and Google for dominance in the AI cloud market. The demand for in-house chips is surging, leading to increased orders for key players like the wafer foundry TSMC and the silicon design and production services company ALCHIP, reported by UDN News.

According to reports, Amazon AWS CEO Adam Selipsky presented the fourth AWS-Designed custom CPU chip, Graviton4, at the AWS re:Invent 2023 in Las Vegas. It claims a 30% improvement in computing performance compared to the current Graviton3, with a 75% increase in memory bandwidth. Computers equipped with this processor are slated to go live in the coming months.

Trainium2, the second-gen chip for AI system training, boasts a computing speed three times faster than its predecessor and doubled energy efficiency. Selipsky announced that AWS will commence offering this new training chip next year.

AWS is accelerating the development of chips, maintaining its lead over Microsoft Azure and Google Cloud platforms. Amazon reports that over 50,000 AWS customers are currently utilizing Graviton chips.

Notably, Amazon’s in-house chip development heavily relies on the Taiwan supply chain, TSMC and ALchip. To produce Amazon’s chips, Alchip primarily provides application-specific integrated circuit (ASIC) design services, and TSMC manufactures with advanced processes.

TSMC consistently refrains from commenting on products for individual customers. Analysts estimate that TSMC has recently indirectly secured numerous orders from Cloud Service Providers (CSPs), mainly through ASIC design service providers assisting CSP giants in launching new in-house AI chips. This is expected to significantly contribute to TSMC’s high utilization for the 5nm family.

In recent years, TSMC has introduced successive technologies such as N4, N4P, N4X, and N5A to strengthen its 5nm family. The N4P, announced at 2023 Technology Symposium, is projected to drive increased demand from 2024 onwards. The expected uptick in demand is mainly attributed to AI, network, and automotive products.

(Image: Amazon)