As Jiwei reported, AMD, although trailing NVIDIA in AI, has recently clinched significant deals, earning the trust of two major clients, Oracle and IBM. Oracle plans to integrate AMD’s Instinct MI300X AI chips into their cloud services, complemented by HPC GPUs. Additionally, as per insights from Ming-Chi Kuo, TF International Securities analyst, IBM is set to leverage AMD’s Xilinx FPGA solutions to handle artificial intelligence workloads.

Oracle’s extensive cloud computing infrastructure faces challenges due to a shortage of NVIDIA GPUs. Nonetheless, Oracle maintains an optimistic outlook. They aim to expand the deployment of the H100 chip by 2024 while considering AMD’s Instinct MI300X as a viable alternative. Oracle has decided to postpone the application of their in-house chips, a project with a multi-year timeline. Instead, they are shifting their focus to AMD’s high-performance AI chip, the MI300X, well-regarded for its impressive capabilities.

Reports indicate that Oracle intends to introduce these processor chips into their infrastructure in early 2024.

Similarly, IBM is exploring chip options beyond NVIDIA. Their new AI inference platform relies on NeuReality’s NR1 chip, manufactured on TSMC’s 7nm process. AMD plays a pivotal role in NeuReality’s AI solution by providing the essential FPGA chips. Foxconn is gearing up for AI server production using this technology in the Q4 2023.

Guo also pointed out that, although Nvidia remains the dominant AI chip manufacturer in 2024, AMD strengthens partnerships with platform service providers/CSPs like Microsoft and Amazon while acquiring companies like Nod.ai. This positions AMD to potentially narrow the AI gap with Nvidia starting in 2025. This collaboration also affirms that AMD remains unaffected by the updated U.S. ban on shipping AI chips to China.

(Image: AMD)

As reported by Nikkei Asia on October 23rd, three inside sources have indicated that Vanguard International Semiconductor(VIS), a prominent semiconductor foundry, is gearing up to construct its first 12-inch wafer plant in Singapore, aiming to meet the surging demand for automotive chips.

It’s important to note that TSMC, the parent company of VIS, holds a significant 28.3% stake in the company. When approached for comments, VIS stated they remain open to various possibilities but are currently observing a quiet period preceding an earnings call, which restricts them to provide further details.

VIS’s Growth and Singapore Expansion

In 2019, VIS acquired a Singaporean 200mm wafer facility from GlobalFoundries for $236 million. Since then, they diversified into producing various sensors and gained a reputation in display driver ICs and power management chips. VIS operated only 200mm wafer plants in Taiwan and Singapore. Recent reports suggest their investment in a 12-inch wafer plant in Singapore is nearing approval, per Nikkei.

The new VIS plant in Tampines, Singapore, is strategically located, a 10-minute drive from their existing 200mm facility and near NXP and SSMC, TSMC’s joint venture. UMC is investing $5 billion in a nearby plant. Expansions by GlobalFoundries and Applied Materials in Singapore bolster the city-state’s semiconductor industry.

Chairman Leuh Fang cited increased demand from U.S., European, and Asian customers who aim to mitigate geopolitical risks tied to chips manufactured in China. His prior role as Deputy General Manager of SSMC in Singapore underscores the importance of this move.

Global Giants Expand Abroad to Meet Clients’ Demand

In line with its global expansion strategy, VIS is not the only player. TSMC is processing its global factory construction as well. Of particular note, the new facility in Arizona, US. The German plant is on schedule for production in 2027. In Japan, the Kumamoto plant is advancing rapidly, and production is anticipated to commence by the end of 2024. Besides, PSMC is planning to establish a 12-inch wafer plant in Japan, becomes the second Taiwanese semiconductor giant to set up shop in Japan after this move, expanding its global presence.

(Image: VIS)

Read more:

• [News] TSMC’s Global Expansion: Progress in New US, German, and Japanese Fabs
• [Insights] Quanta, Wiwynn, and Major Manufacturers Scale Up to Meet Rising Demand for AI Servers
• [News] PSMC’s Japanese Venture in Mie Prefecture Awaits Local Support

In October 2023, Quanta revealed plans to open three new factories in California, USA, with the goal of creating state-of-the-art assembly lines for AI servers. Around the same time, Wiwynn shared its intentions to launch a server cabinet assembly plant in Johor, Malaysia, featuring advanced liquid cooling technology. Additionally, server contract manufacturing giants, Foxconn and Inventec, are strategically positioning their AI server manufacturing facilities both domestically and internationally to meet the expected demand for AI server orders in the 2024 market.

 TrendForce’s Insights:

1. Wiwynn and Quanta Open New AI Server Facilities, Enhancing Orders from Major U.S. Cloud Service Providers

Both Wiwynn and Quanta are contract manufacturers for cloud service giants such as Meta, Microsoft, and AWS. These three cloud service providers accounted for nearly 50% of the global server procurement in 2023. They’re doing this to keep up with the growing demand for AI servers, especially in the latter part of 2023, driven by applications like ChatGPT. Big cloud service providers, have allocated a significant chunk of their global server orders to these manufacturers, giving AI servers a top spot over regular servers.

Wiwynn, in particular, has set up shop in Malaysia to meet the surging demand for AI servers. Due to factors like the trade tensions between China and the U.S. and tariff avoidance measures, they are shifting their manufacturing capacity and equipment from their Guangdong factory in China to locations in Taiwan and Malaysia. This transition is expected to be completed between the end of 2023 and early 2024, making it easier to manage resources on a global scale.

Quanta’s smart move to open new assembly fabs near major U.S. cloud service providers allows them to deliver quickly to data centers in Europe and the U.S., saving on transportation costs and ensuring speedy deliveries. Both major Taiwanese manufacturers are optimistic about their orders for AI servers. This optimism allows them to expand their manufacturing capabilities in existing and new locations to strengthen partnerships with the big cloud players.

2. Leading Taiwanese Server Manufacturers Expand Production at Home and Abroad, Anticipating a Multi-Fold Growth in AI Server Shipments by 2024

Major companies like Foxconn and Inventec are actively expanding their production facilities, both in their home country and abroad, to prepare for the expected increase in orders for AI servers from leading cloud service providers in 2024.

Fii and Ingrasys Inc., two important subsidiaries of Foxconn, dedicated to handling orders and manufacturing for servers. They have their own server assembly plants in various locations, including China, the United States, Europe, Vietnam, and Taiwan. They follow an integrated supply chain model, starting from producing motherboards to assembling complete server cabinets. Once the assembly is done, they ship the products to the data centers of cloud service providers. To meet the anticipated high-end AI server orders in 2024, Ingrasys Inc. added new production lines in the second quarter of 2023 to meet the demands of AI server manufacturers.

Inventec, a manufacturer that specializes in making server motherboards, expects a steady demand for AI servers in 2024-2025. With this expectation, they started construction at their factory in Thailand in Q3 of 2023. By Q4 of 2024, the factory will undergo production line testing, and mass production could begin as early as the first quarter of 2025 to meet the needs of major manufacturers. The new factory in Mexico is expected to match the production capacity of their Chinese facility. It has already started limited production and is expected to be in full operation by Q4 of 2024.

The four major contract manufacturers in Taiwan, specializing in server production, are either adding new production lines to their existing facilities or building new factories overseas between Q2 to Q4 of 2023. This undoubtedly shows their positive attitude to AI server shipments in 2024. As the use of AI servers continues to grow, market demand is expected to significantly increase year by year, which is likely to bring substantial revenue, profit, and production advantages to these contract manufacturers.

This year’s COMPUTEX successfully attracted global attention, with the participation of 1,000 exhibitors and nearly 50,000 technology experts, startups, professional buyers, and international media. Building on the success of this year’s exhibition, COMPUTEX 2024 will revolve around Artificial Intelligence (AI) and is scheduled to take place from June 4 to 7 at the Nangang Exhibition Center, Halls 1 and 2. The organizer cordially invites interested exhibitors to register and join this global technology extravaganza.

COMPUTEX 2024: Building an AI Technology Ecosystem

According to market research firm IDC’s predictions, global spending on AI system-related software, hardware, and services is expected to exceed $300 billion by 2026. Additionally, the compound annual growth rate (CAGR) for 2022 to 2026 is projected to reach 26.5%. Given the continued expansion of the global AI computing trend into various industries, COMPUTEX 2024 focuses on six major themes: AI Computing, Advanced Connectivity, Future Mobility, Immersive Reality, Innovations, and Sustainability. New additions to the event include exhibition areas with forward-looking development potential, such as AI Computing and System Integration, Components and Battery Energy Storage, and Smart Mobility. We invite global technology enterprises to join us in co-creating the AI technology ecosystem.

InnoVEX, the innovation and startup exhibition area, stands as COMPUTEX’s international benchmark platform for startups. It provides startup companies with opportunities to find manufacturing partners and international sales channels while hosting startup competitions and product presentations to increase visibility and garner support from international investors.

Diverse and Rich Exhibition Activities Receive Support from Technology Leaders

This year, COMPUTEX Keynotes & Forums made a significant impact by featuring heavyweight tech CEO speakers. The event created quite a buzz in the industry, drawing an attendance of 7,000 people on-site and an impressive 2.5 million online views. In 2024, the organizers will continue to host these speaking engagements, inviting tech giants and high-level executives to share their profound insights into future technology trends. These discussions delve deep into areas such as AI, system integration, data science, IoT, and more, fostering cross-disciplinary exchanges and knowledge sharing.

Throughout the exhibition, there will be additional events, including international press conferences, opening ceremonies, procurement meetings, themed guided tours, Happy Hour, and more. These activities are designed to enhance communication and interaction among exhibitors, international media, international buyers, and domestic industry professionals.

COMPUTEX 2024: Registration to Exhibit is Now Open for this Global Business Opportunity Event

Registration for COMPUTEX 2024 is now officially open; an outstanding platform for businesses interested in expanding international markets, staying updated on the latest industry trends, and identifying potential supply chain partners. We warmly welcome participants in today’s tech, especially the fields of AI technology, system integration solutions, smart technology, and startups.

(Image: COMPUTEX)

DB HiTek, a Specialty IC foundry in South Korea, is intensifying its research efforts in the Silicon Carbide (SiC) and Gallium Nitride (GaN) semiconductor domains to support future business growth, Jiwei reported.

DB HiTek’s recent investments aim to bolster its 8-inch wafer manufacturing capabilities. Nevertheless, due to a slow market recovery, reports suggest that the operation of the 8-inch wafer foundry may face challenges, and the transition to a 12-inch wafer foundry operation remains a question mark. In light of this situation, DB HiTek’s future development will pivot towards new power semiconductors such as GaN and SiC.

The company has reportedly initiated investments in essential equipment for next-generation GaN and SiC power semiconductors, a move set to expedite their research and development.

It is reported that DB HiTek, housing an 8-inch wafer foundry, is gearing up to venture into the SiC market, while the 6-inch wafer foundry remains the norm in this sector. As part of government policy initiatives, this specialized foundry is collaborating with Busan Techno Park for Silicon Carbide development.

In GaN semiconductor manufacturing, DB HiTek is partnering with the fabless company A-PRO Semicon to fine-tune their foundry processes.

As per the company’s website, DB HiTek operates two wafer foundries, producing ICs across a range of manufacturing nodes from 350nm to 90nm. Fab 1 in Bucheon City, Gyeonggi-do, offers chip solutions within the 150nm to 350nm nodes, including mixed-signal, power, and analog chips. Fab 2 in Eumseong County, Chungcheongbuk-do, provides solutions suitable for the 90nm to 180nm process nodes, including mixed-signal and CMOS image sensors (CIS), among other applications.
(Image: DB HiTek)

Read more:

• [News] Strategic Shift in Samsung’s Personnel Focuses on SiC