Any suggestions for Samsung to get out of the rut? The remedy for its slow transformation may be hidden in the experience of Japanese peers. According to reports by Nikkei and Korea media outlet edaily, Samsung has begun researching Japanese companies, led by its Future Business Planning Division.

Citing Nikkei’s report on October 16^th, edaily notes that Samsung’s Future Business Planning Division, which is directly under the charge of Chairman Jay Y. Lee himself, plans to analyze the operations of 110 Japanese companies to study the decline and revival of the Japanese electronics industry. The main objective of the initiative is to identify and nurture business opportunities for Samsung, the reports suggest.

Notably, the research is said to include major tech firms such as Sony Group, which has gradually shifted its focus from hardware to content-oriented businesses like gaming, music, and film, edaily notes. Hitachi, a paradigm of downsizing its original business empire to focus on key growth areas instead, is rumored to be another research subject.

The reports indicate that Samsung’s Future Business Planning Division is gathering not only top employees from various divisions of the group but also individuals with business experience from outside, as it tries to “seek answers from the past for the future.”

Interestingly though, Samsung seems to be in the same shoes as its Japanese rivals a few years ago. Nikkei states that the South Korean tech giant surpassed Japanese companies in the semiconductor and television sectors, but now has found itself in a defensive position when being gradually caught up by Chinese companies, much like the situation Japanese firms used to get stuck in.

Samsung reported its third-quarter earnings last week. The company’s operating profit was initially expected to exceed 10 trillion won, but the actual performance fell short of that target. In terms of chip making business, it is lagging behind foundry giant TSMC due to unstable 3nm yield rates. Regarding memory business, SK hynix is claiming the throne of HBM amid AI boom.

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• [News] Lagging behind SK hynix in HBM, Samsung Plans Significant Year-end Cuts to Chip Executives
• [News] Samsung Foundry Faces Yield Struggles and Client Losses, External Push for Spinoff and U.S. Listing

(Photo credit: Samsung)

The AI wave continues to fuel surging demand for AI chips. Following reports of HBM sellouts and manufacturers ramping up production to meet demand, recent news reveals that Nvidia’s Blackwell architecture GPUs are also in short supply.

Nvidia’s Blackwell GPUs Sold Out for the Next 12 Months

Although Nvidia’s Blackwell architecture GPUs are delayed until Q4 of this year, it hasn’t dampened orders.

According to Tom’s Hardware, Morgan Stanley recently held a three-day meeting in New York with Nvidia CEO Jensen Huang, CFO Colette Kress, and other members of the chipmaker’s management team.

Morgan Stanley reported that Nvidia stated that orders for Blackwell architecture GPUs are sold out for the next 12 months, and new customers placing orders now won’t receive products until the end of 2025.

Existing customers, including AWS, CoreWeave, Google, Meta, Microsoft, and Oracle, have already purchased all of the Blackwell architecture GPUs that Nvidia and its partner TSMC can produce in the coming quarters.

The industry points out that the demand for high-performance GPUs and the AI chip market behind them remains frenetic, and the competition between major AI chip manufacturers such as Nvidia, AMD, and Intel will become increasingly fierce.

Three Memory Giants Seize HBM3e Opportunities, Highlighting the Importance of 12hi Products

Driven by the continuous iteration of high-performance AI chips and the expansion of HBM capacity per system, the demand for HBM bits continues to grow.

At the same time, with the iteration of mainstream GPU products from Nvidia and AMD, as well as changes in HBM specifications, the market will gradually upgrade from HBM3 to HBM3e. The three major memory manufacturers will actively seize HBM3e opportunities.

According to TrendForce, the annual growth rate of HBM demand bits will be close to 200% in 2024 and will double again in 2025.

TrendForce estimates that driven by the active adoption of new-generation HBM products by AI platforms, more than 80% of HBM demand bits will be for HBM3e generation products in 2025, of which 12-hi will account for more than half, becoming the mainstream product that major AI manufacturers will compete for in the second half of next year, followed by 8-hi.

Samsung, SK Hynix, and Micron have submitted their first batches of HBM3e 12-hi samples in the first half of 2024 and the third quarter, respectively, and are currently in the continuous verification stage. Among them, SK Hynix and Micron are progressing faster and are expected to complete verification by the end of this year.

(Photo credit:  Nvidia)

On October 15th, Intel and AMD announced the formation of an x86 Ecosystem Advisory Group. According to the press release, these two tech giants established this group to enhance architectural interoperability and simplify software development for the x86 system.

Other members of this x86 Ecosystem Advisory group include industry leaders from Broadcom, Dell, Google, Hewlett Packard Enterprise, HP Inc., Lenovo, Meta, Microsoft, Oracle, and Red Hat.

The press release stated that for over forty years, x86 has served as the foundation of modern computing, establishing itself as the preferred architecture in data centers and PCs worldwide.

According to a report from Forbes, x86 has long been the dominant architecture in both datacenters and PCs, while Arm has a strong presence in smartphones and IoT. However, Arm has recently started to encroach on x86’s territory, as seen in its increasing adoption within hyperscale datacenters and its emerging role in Microsoft’s Copilot+ PC initiative.

A report from Reuters stated that Intel and AMD have formed this group in response to the challenges posed by the rise of Arm Holdings, which is increasingly adopted by tech giants including Apple, Qualcomm, Amazon, Microsoft, and Alphabet.

According to the report from Reuters, one of the main reason behind Arm’s success is that Arm has indicated in its contracts that all Arm chips should be able to run all Arm software, regardless of who made the chip.

The report noted that, in contrast, while Intel and AMD use the same foundational x86 technology in their chips, software may require adjustments to function properly across their products.

To address this issue, one of the main objectives of the x86 Ecosystem Advisory Group is to identify “new ways to expand the x86 ecosystem by enabling compatibility across platforms,” as stated in the press release.

Intel and AMD have a rich history of both competition and collaboration within the industry, which makes this partnership quite interesting. In the past decade, Intel’s dominance in the laptop processors has gradually declined. In some sectors, AMD even caught up and overtook Intel’s throne.

Amid Intel’s efforts for restructuring, previous rumors even indicate that AMD could be a potential buyer of Intel’s Field Programmable Gate Array (FPGA) unit Altera.

On the other hand, the two companies’  joint efforts have played a crucial role in developing key technologies such as PCI, PCIe, and the Advanced Configuration and Power Interface (ACPI).

Additionally, both companies have been crucial in the development of USB, an essential connectivity standard for all computers, regardless of the processor.

This advisory group aims to elevate their collaborative efforts further, benefiting the entire computing ecosystem and serving as a catalyst for product innovation.

Read more

• [News] AMD Could Emerge as a Prospective Buyer for Intel’s Potential Sale of Altera
• [News] Intel Shifts to TSMC for Chip Production: A Looming Threat for AMD?

(Photo credit: Intel)

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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• [News] A Quick Roundup of Intel’s Five Core Businesses: Key Moves to Watch Next
• [News] Arm’s Request of Acquiring Intel’s Product Division Has Been Reportedly Rejected

(Photo credit: Qualcomm)

As ASML accidentally released its financial report nearly a day ahead of its schedule due to a “technical error,” the Dutch semiconductor giant’s Q3 performance and its forecast for 2025 have also startled all by reporting orders at half of what the market predicted, raising concerns on the lackluster outlook of semiconductors despite strong demand for AI-related chips, according to the reports by Bloomberg and Reuters.

The result is regarded as a warning signal, as it might imply the weak performance for ASML’s major clients, such as tech heavyweights Intel and Samsung, the reports note. TSMC, another of ASML’s client, will release its Q3 earnings results tomorrow.

ASML shares plummeted 16%, marking their largest drop since June, 1998, the reports by Reuters and Bloomberg state.

Lackluster Q3 Bookings and 2025 Outlook as Customers Remain Cautious

ASML, known for producing the world’s most advanced chipmaking equipment such as High-NA EUV machines, posted a net profit of 2.1 billion euros on revenue of 7.5 billion euros (USD 8.2 billion) in Q3. However, it reported third-quarter bookings of €2.6 billion (USD 2.8 billion), falling short of the average estimate of €5.39 billion from analysts surveyed, according to Bloomberg.

According to its press release, ASML revised its 2025 total net sales forecast to a range of €30 billion to €35 billion, down from its previous estimate of up to €40 billion.

For next year, the company anticipates a gross margin between 51% and 53%, lower than the prior projection of 54% to 56%, mainly due to delays in the rollout of its high-end extreme ultraviolet machines.

According to a statement by ASML Chief Executive Officer Christophe Fouquet cited by the reports, the recovery of the semiconductor industry is progressing more slowly than anticipated, and this cautious outlook is expected to persist into 2025, leading to more conservative behavior from customers.

Key Clients in Trouble while Chip War Remains an Issue

It is worth noting that according to Reuters, ASML indicates that despite strong demand for AI-related chips, other segments of the semiconductor market are facing prolonged weakness. This has caused logic chip manufacturers to postpone orders, while memory chip companies are only planning “limited” expansions in new capacity.

According to a report from South Korean media outlet Business Korea, Samsung is said to mull to reduce its procurement of ASML’s next-generation EUV lithography equipment. Reportedly, Samsung initially planned to purchase more than three units of the next versions, EXE:5200, EXE:5400, and EXE:5600, over the next ten years. However, the company has now decided to introduce only the EXE:5200.

On the other hand, another struggling semiconductor giant, Intel, has secured five units of High-NA EUV machines from ASML to ensure its progress with the 2nm node, according to a previous report by TheElec. However, as the company has been doing its best to reduce expenses through restructuring and delaying overseas expansion, whether it will stick to the original purchase plan remains to be seen.

The report by Bloomberg also warns that while China was ASML’s largest market, the demand from China may slow in the coming periods, as Washington’s ongoing chip war with Beijing remains a persistent long-term concern for ASML.

Read more

• [News] Intel Completes Assembly of Second High-NA EUV System, ASML Confirms
• [News] Samsung Reportedly Reduces Procurement of ASML’s Next-Generation EUV Lithography Equipment

(Photo credit: ASML)