According to TrendForce’s latest memory spot price trend report, DRAM spot prices have finally stabilized as Samsung is committed to propping them up. Spot prices of DDR4 products, in particular, continue the momentum. As for NAND flash, demand for a small extent of inventory replenishment remains possible for 3Q24, which may help the sales performance from the spot market to improve from that of 2Q24. Details are as follows:

DRAM Spot Price:

DRAM spot prices, which had experienced a long period of decline, have finally stabilized as Samsung is committed to propping them up. Spot prices of DDR4 products, in particular, have risen slightly. Additionally, since spot prices are currently lower than contract prices for both DDR4 and DDR5 products, module houses and other buyers prefer spot trading. This, in turn, has helped stabilize spot prices. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has increased by 0.81% from US$1.979 last week to US$1.995 this week.

NAND Flash Spot Price:

Spot prices have started to stabilize recently as a result of reluctance in truncation from spot traders and module houses, as well as the consideration on how the growth of demand has been exceedingly confined by the drop of prices. Demand for a small extent of inventory replenishment remains possible for 3Q24, when sales performance from the spot market is expected to improve from that of 2Q24. On the whole, spot prices would first maintain equilibrium whilst awaiting for the final development of suppliers’ contract prices and the market status for 3Q24, before deciding on subsequent actions. Spot prices of 512Gb TLC wafers have dropped by 0.58% this week, arriving at US$3.272.

As Samsung actively expands its high-bandwidth memory (HBM) capabilities, it is also striving to enhance the penetration rate of its existing memory products in mobile devices such as smartphones. On July 16, Samsung announced that it has completed verification of its latest LPDDR5X DRAM, which can be paired with MediaTek’s next-generation smartphone chips.

Since MediaTek has yet to release its next-generation 5G flagship chip, the Dimensity 9400, Samsung’s announcement has drawn greater attention to the upcoming release date of the Dimensity 9400.

Samsung’s LPDDR5X DRAM boasts a 25% performance improvement over the previous generation, with increased execution speed, and will be compatible with the Dimensity 9400 chip set to be released in the fourth quarter. Industry sources cited by Economic Daily News further note that this means smartphone brands that choose the Dimensity 9400 as their main chip can also opt for Samsung’s LPDDR5X DRAM as the mobile memory solution for their new devices.

Samsung’s latest LPDDR5X DRAM claims to extend the battery life of mobile devices and enhance the speed of AI functions within the device, such as voice-to-text generation, without the need for server or cloud access.

According per another report by the Korea Economic Daily, JC Hsu, General Manager of MediaTek’s Wireless Communication Business Unit, stated that Samsung’s LPDDR5X DRAM, with an execution speed of up to 10.7 Gbps, will leverage more AI capabilities and performance of MediaTek’s upcoming products.

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(Photo credit: Samsung)

According to a report by Yonhap News Agency, data released by Korea’s Ministry of Science and information and communication technology ICT on July 15 shows that in the first half of this year, Korea’s ICT industry exports grew by 28.2% YoY to USD 108.85 billion, setting the second-highest record for the same period in history.

Fueled by demands in the AI, IT information technology, and telecommunications equipment markets, semiconductor exports, one of Korea’s main export products, surged by 49.9% YoY, reaching USD 65.83 billion.

On a market segment basis, Korea’s memory exports in the first half of the year saw a hike of 88.7% YoY, driven by increased exports of products like high bandwidth memory (HBM).

Due to increased investment in server and data center as well as increased demand for personal computer and other devices, exports of computers and peripheral devices rose by 35.6% YoY; instead, mobile phone exports decreased by 2.8% YoY to USD 5.58 billion.

In June, ICT exports grew by 31.1% YoY, reaching USD 21.05 billion, the highest value for the same month in history. Semiconductor exports were USD 13.44 billion, also setting a record high for the same month. Notably, memory chip exports soared by 85.2% YoY, reaching USD 8.83 billion.

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(Photo credit: SK Hynix)

As per a report from Korea Economic Daily citing unnamed sources on July 15th, Samsung Electronics is preparing to mass-produce the logic die for HBM4 using its advanced 4nm process.

The logic die, situated at the bottom of the chip stack, is a core component of HBM. Memory manufacturers are already capable of producing logic dies for existing products like HBM3e. However, regarding HBM4, the sixth-generation model, with its custom features demanded by customers, requires additional wafer processing steps.

Reportedly, Samsung’s 4nm process, which boasts is said boasting a yield rate exceeding 70%, is one of their flagship technologies. This advanced process is also used in producing the Exynos 2400 processor for their flagship AI smartphone, the Galaxy S24.

An industry source cited by the report further stated that the 4nm process is much costlier than the 7nm and 8nm but significantly better in terms of chip performance and power consumption. Reportedly, Samsung, which manufactures HBM3e with the 10nm process, is looking to take the throne in the HBM sector by applying the 4nm process.

On the other hand, SK Hynix announced its collaboration with TSMC in April 2024. In a statement released on April 19th, SK Hynix stated that the two semiconductor giants will collaborate on developing the 6th generation HBM4 chips, with production scheduled for 2026.

The same report from the Korean Economic Daily also addressed that, Samsung has reportedly deployed employees from its System LSI division to the newly established HBM research team. In response to Samsung’s actions, SK Hynix and TSMC have decided to add the 5nm process in addition to the originally planned 12nm process for producing the logic die of HBM4.

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• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4
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(Photo credit: Samsung)

According to a report from Commercial Times, with expectations that tensions between the U.S. and China remain unresolved for the time being, and China’s continued production in mature process semiconductor foundries and communication equipment, the trend of decoupling from China is likely to expand.

The U.S.-China trade war has continued for several years, with the U.S. announcing in May an additional tariff on Chinese imports, including a substantial 50% tariff on semiconductor products manufactured in China by 2025. This move has further intensified the trade conflict between the two superpowers.

Thus, as per the same report, as concerns over overcapacity in various industrial products in China heighten this year, coupling with the unresolved U.S.-China relations, Taiwanese foundries including UMC, VIS, Powerchip, and networking companies such as WNC, SERCOM and Arcadyan may be benefited from the potential increased outsourcing orders.

Consequently, despite aggressive pricing competition from Chinese mature process foundries, the average selling price (ASP) and overall operational performance of Taiwan’s major mature process foundries have exceeded expectations in the first half of this year.

TrendForce previously indicated that, the supply chain’s order-shifting has become more proactive with the imposition of US tariffs. Qualcomm, which began cooperation discussions with Vanguard in 2021, has made its production plans more aggressive this year. This has prompted Vanguard to expand the first-phase capacity of its new Fab5 plant by 3Q24 and to complete cross-plant validation for Qualcomm’s PMIC to meet demand. Since 2022, MPS has also started shifting orders, including plans with both Vanguard and PSMC.

In recent years, the limitations on Chinese companies’ expansion in the U.S. have also allowed Taiwanese networking companies to capture significant American infrastructure opportunities. WNC covers optical fiber, 5G FWA, and enterprise networking businesses, with over 60% of its revenue from the Americas. SERCOMM Corporation has penetrated the North American optical fiber broadband upgrade market, securing key North American telecom operators. Meanwhile, Arcadyan Technologys’ optical fiber products have entered top-tier North American telecom operators.

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(Photo credit: iStock)