Following the Singles’ Day Sale in China, demands are relatively cooled down. While for DRAM spot prices, market experiences fluctuations due to subdued demand and increased supply of used chips. In contrast, NAND spot price remains relatively strong under the ongoing reduction in supply.

DRAM Spot Market

Following the Singles’ Day promotional events in China, demand has cooled down compared with the previous few weeks. Looking at DRAM spot prices, prices for chips from suppliers have remained steady, but there has been an influx of used chips stripped from decommissioned modules. Spot prices of used DDR4 chips have now fallen to US$1.05, significantly lower than the spot price of around US$1.75 for new chips from suppliers. Spot prices of DDR5 chips, on the other hand, have remained relatively stable. However, Kingston has not raised module prices, making it difficult to sustain the upward momentum. The average spot price of mainstream chips (DDR4 1Gx8 2666MT/s) rose by 1.54% from US$1.683 last week to US$1.709 this week.

NAND Flash Spot Market

Demand from the spot market has become even more enervated after China’s Double 11 shopping festival when compared to that of several weeks ago. In terms of spot prices, the mainstream 512Gb wafer is supported by suppliers’ ongoing diminishment of wafer provision, and continues to march towards US$2.7-US$2.9 at a relatively robust tendency in comparison with DRAM spots, despite poor demand. 512Gb TLC wafer spots have risen by 11.54% this week, arriving at US$2.862.

On November 28, CXMT revealed its latest DRAM product, LPDDR5. As the first Chinese brand to independently develop and manufacture LPDDR5 products, CXMT marks a breakthrough in the Chinese market and broadens its product reach in the mobile terminal market, reported by MooreNews.

CXMT’s LPDDR5, the fifth generation of low-power double data rate synchronous dynamic random access memory, boasts a 50% increase in single-die density and speed compared to LPDDR4X, respectively reaching 12Gb and 6400Mbps. Notably, power consumption is reduced by 30%. Featuring robust RAS features, including on-die error correction code (ECC) for real-time error correction, LPDDR5 enable data security and system stability. The 12GB LPDDR5 chip from CXMT is the first product adopting Package on Package (PoP) stacking for the company.

The launch of LPDDR5 by CXMT enhances the quality and reduces costs for personal and business applications, further expanding its footprint in the mobile market. As the first company in launching independently developed and manufactured LPDDR5 products in China, CXMT accelerates the industrialization of the DRAM industry, spearheading the Chinese DRAM industry into the LPDDR5 era.

LPDDR5 chips bring faster speeds and lower power consumption to mobile electronic devices, significantly improving overall product performance. According to CXMT’s website, LPDDR5 products have already received validation from major Chinese smartphone brands such as Xiaomi and Transsion, with plans to expedite overall market commercialization.

In its product lineup, CXMT specializes in DRAM design, with DDR4, LPDDR4X, and DDR4 modules catering to diverse storage needs in terms of performance, capacity, and usage. Collaborating through joint research and development with leading customer companies, CXMT delivers highly customized integrated solutions, effectively meeting the varied demands of the market. The introduction of LPDDR5 further solidifies CXMT’s position in the mobile market.
(Image: CXMT)

Loongson Technology Corp Ltd, unveiled its latest domestic CPU, Loongson 3A6000, on November 28th in Beijing, China. Notably, this CPU is entirely based on Chinese in-house design, free from reliance on any foreign licensed technology. During the product launch, Weiwu Hu, the chairman of Loongson, announced that next phase will utilize mature processes to achieve performance comparable to Intel’s advanced process, reported by CTEE.

Loongson 3A6000 adopts a China domestic instruction set architecture(ISA), showcasing China’s capability to self-develop a new generation CPU, as reported by CCTV News. This CPU can run various cross-platform applications, catering to the needs of diverse large and complex desktop scenarios.

The release of the Loongson 3A6000 signifies a pivotal milestone, highlighting China’s achievement in self sufficiency and product performance, bringing it on par with international mainstream products.

According to Mydrivers.com, test results indicate that the overall performance of the Loongson 3A6000 processor is comparable to Intel’s 10^th Gen Core quad-core processor launched in 2020. Notably, the Loongson 3A6000 is built on the self-developed ISA “LoongArch,” showcasing complete independence from foreign licensing, from top-level structure to ISA and application binary interface (ABI) standards.

In terms of core performance, the Loongson 3A6000 boasts a main frequency of 2.5GHz, supports 128-bit vector extension (Loongson SIMD eXtension, LSX), and 256-bit advanced vector extension (Loongson Advanced SIMD eXtension, LASX). It also supports simultaneous multi-threading technology (SMT2), featuring a total of 8 logical cores on the entire chip.

Hu highlighted that the 3A6000 has charted a path based on mature processes, optimizing performance through design. This achievement marks comparable performance with Intel and AMD under relatively weaker process conditions. The next step involves continuing to use mature processes to achieve performance levels on par with Intel’s advanced technology.

Regarding the upcoming Loongson 3B6000, Hu mentioned during the third-quarter earnings briefing that Loongson is strategically focused on enhancing efficiency, aiming to reach or approach the performance level of Apple’s CPU for each GHz.
(Image: Jiwei)

China is actively investing in chips with a mature process of 20nm and above. According to Chosun Ilbo, some insiders signal a potential shift of over 50% of global mature-node chips production to China within the next 2 to 3 years. As semiconductors focusing on mature process account for 75% of overall chip demand, China’s growing influence in this sector raises significant security concerns.

During the APEC SME Technology Conference and Fair in Qingdao on the 9th of this month, Wei Li, former Vice President of SMIC, emphasized the necessity for China to prioritize the localization of semiconductors with a 20nm process and above. This category includes semiconductors focusing on mature process, where Li acknowledged China’s technology lags behind international counterparts by more than 5 years.

Despite China’s efforts for independent development, the semiconductor industry faces comprehensive restrictions from the United States, heavily relying on imports for materials, equipment, and design software, with only about 10% being domestically produced. China, holding over 1/3 of the global chip market, struggles with a self-sufficiency rate below 15%, hindering its industrial progress, especially with foreign countries imposing export controls on advanced process and equipment.

According to South Korean media reports, concerns have arisen within the industry about the potential impact on the global semiconductor supply chain as China expands its mature processes. Despite the recent surge in demand for advanced chips like AI chips and servers, semiconductors focusing on mature process still constitute 75% of overall demand. These chips are crucial not only in autonomous vehicles, automobiles, and home appliances but also in military applications. If China monopolizes this market, it could lead to a severe security crisis.

China is rapidly increasing its market share in the mature-node chips sector, with the government offering up to a 10-year corporate tax exemption for new domestic semiconductor plants. Last year, SMIC invested USD 8.9 billion in Shanghai to build a 28nm plant.

Data from TrendForce indicates that China plans to construct 32 semiconductor plants by 2024, surpassing Taiwan’s 19 and the United States’ 12.

China’s Wafer Fabs Hits 44 with Future Expansion 32, Mainly Targeting on The Mature Process

China’s Expansion into the mature process market poses big challenges for Korean enterprises. Chinese companies are gaining ground in various sectors, including the image sensor market, encompassing DDI semiconductors used in OLED panels. Beyond manufacturing capabilities, China has achieved noteworthy levels of design expertise in semiconductor technologies.

On the other hand, in previous press release, TrendForce predicted China’s mature process capacity to grow from 29% this year to 33% by 2027. Leading the charge are giants like SMIC, Hua Hong Group, and Nexchip, while Taiwan’s share is estimated to consolidate from 49% down to 42%.

TSMC, UMC, and Samsung are the frontrunners in this technology currently. Yet, Chinese players like SMIC and Nexchip are hot on their heels, swiftly closing the gap. SMIC’s 28HV and Nexchip’s 40HV are gearing up for mass production in 4Q23 and 1H24, respectively—narrowing their technological gap with other foundries.

China’s Share in Mature Process Capacity Predicted to Hit 29% in 2023, Climbing to 33% by 2027, Says TrendForce

As China enhances its influence over mature-node chips, both the U.S. and the EU are contemplating countermeasures. Despite months of discussions, there are still no concrete results regarding these potential measures.
(Image: SMIC)

The semiconductor industry in China is gradually recovering in response to shifts in downstream demand in the end of November. This positive trend is reflected in the industry’s dynamics of investment and financing.

There have been nearly 40 financing events in the semiconductor industry. Sectors such as storage chips, MEMS, automotive-grade chips, third-generation semiconductors, and semiconductor materials/equipment are particularly attracting capital. Companies in the spotlight include SCY, Sinopack, YT Micro, Oritek, Analogysemi, Konsemi, and UniSiC.

SCY: Advancing Core Storage Technology 

Shenzhen-based SCY has successfully concluded Series B strategic financing, led by Xiaomi Industry Fund and joined by several upstream and downstream companies. The funds raised will be dedicated to enhancing core storage technology, research and development, furthering global strategies. SCY aims to establish its own storage brands, SCY and WeIC, in the terminal market. The company has achieved a breakthrough in the second-generation Flip Chip advanced packaging technology, with the full-scale production of its self-developed 512GB UFS3.1 storage chip. The expectation is to achieve mass production of 1TB capacity UFS3.1 next year.

Sinopack: Advancements in Ceramic Packaging 

Sinopack has completed Series B strategic financing, earmarking the capital for production line construction and research and development to stimulate the company’s second growth curve. Established in 2009, Sinopack focuses on ceramic packaging applied in optical communication, wireless communication, and other fields. The company has successfully developed precision ceramic components with core materials such as aluminum oxide and aluminum nitride. Sales revenue in the first half of 2023 has already surpassed the entire year of 2022.

YT Micro: Driving Automotive-grade Chip Innovation

Jiangsu-based YT Micro has successfully secured Series B1 round financing. The company specializes in automotive-grade chips design. With deep collaborations with numerous automotive OEMs  and automotive component companies, YT Micro has executed 300+ specified projects, resulting in millions of shipments. Future plans include increased investment in the research and development and mass production of high-performance automotive processor chips, expanding industrial ecological cooperation, and strengthening strategic business collaborations with OEMs and Tier1.

Oritek: Pioneering Intelligent Automotive Solutions

Oritek stands as China’s first provider focusing on the third generation of intelligent automotive E/E architecture. The company’s Longquan series chips cater to smart automotive terminal-side intelligent components, smart local processing unit, and integrated central computing units for parking and charging in 2023. The Longquan 560 chip was unveiled in 2023.

Analogysemi: Advancing Analog and Mixed-signal Chips

Founded in 2018, Analogysemi concentrates on analog and mixed-signal chips, applied across various markets like industrial, communication, medical, and automotive. The company has successfully entered the automotive electronics field, achieving mass production of products such as automotive-grade DC brushed motor drivers, widely used in automotive electronic components.

Konsemi: Elevating Embedded Storage Solutions

Established in November 2018, Konsemi focuses on the research and development of embedded storage controller chips and modules. It stands among the few Chinese manufacturers independently designing a complete range of embedded storage chips. With applications spanning smart TVs, set-top boxes, mobile devices, smart wearables, communication devices, drones, industrial robots, and new energy vehicles, Konsemi’s self-developed eMMC product has received certifications from mainstream manufacturers and is integrated into the supply chain of renowned brands, with sales reaching millions.

UniSiC: Leading in Power Semiconductor Device Testing

UniSiC has successfully concluded a billion-yuan strategic financing, earmarked for forward-looking product research and development and global expansion. Established in 2020, the company focuses on power semiconductor device testing and high-frequency power electronic applications. With successful developments in silicon carbide technology and securing multiple orders, UniSiC’s SiC ATE product has commenced overseas installations.