To revitalize its domestic semiconductor chip industry, Japan has launched several measures in recent years, including financial subsidies. According to Japanese media reports, many Japanese companies will invest JPY 5 trillion (Around USD 30.96 billion) to develop the semiconductor business.

Nikkei Asia reported on July 8 that eight Japanese companies, including Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric, will invest JPY 5 trillion in the semiconductor field by 2029, driven by the promising prospects of AI, EV, and carbon reduction markets.

As per Nikkei News, based on the capital investment plans from the fiscal 2021 to 2029 of these manufacturers, in order to rejuvenate Japan’s domestic chip industry, these companies will increase their investments in power semiconductor, sensor, and logic chip fields, which are seen as core technologies to the burgeoning sectors such as AI, decarbonization, and EV.

Among these, Sony plans to invest about JPY 1.6 trillion from fiscal 2021 to 2026 to ramp up its CMOS image sensor production capacity. Sony is a globally renowned image sensor manufacturer, and its chip business head, Terushi Shimizu, previously predicted that Sony’s market share in the global image sensor market would reach 60% by the new fiscal year starting April 2025.

In December 2023, Sony held a completion ceremony for the expansion project at its Nagasaki Technology Center (Isahaya City, Nagasaki Prefecture), which produces image sensors. Sony also announced the plan to build a new image sensor production plant in Kumamoto Prefecture, matching the need to expand the Nagasaki plant to improve its supply system. Nikkei News reported in 2022 that Sony planed to invest several hundred billion yen in the new Kumamoto plant to produce smartphone image sensors, with construction expected to start as early as 2024 and production in 2025.

Toshiba and Rohm, positive about the expanding demand for AI data center and the EV market, project to jointly invest about JPY 380 billion to increase the production of silicon (Si) and silicon carbide (SiC) power semiconductors.

In December 2023, Toshiba announced that it had reached an agreement with Rohm to collaborate on manufacturing power devices. Both companies are expected to make efficiency investment totaling JPY 388.3 billion in silicon (Si) and silicon carbide (SiC) power devices fields, aiming to significantly strengthen their supply capacity and complement each other’s production capabilities.

Rohm plans to build a new plant in Miyazaki Prefecture on Kyushu Island and will allocate JPY 289.2 billion in silicon carbide wafer production. Toshiba will invest nearly JPY 100 billion to set up a cutting-edge 300mm wafer manufacturing plant in Ishikawa Prefecture, central Japan.

Mitsubishi Electric plans to invest JPY 100 billion to build a new factory in Kumamoto Prefecture to produce silicon carbide power semiconductor, expected to commence operation in April 2026. Mitsubishi Electric aims to increase its SiC power semiconductor production capacity to five times the 2022 level by 2026. Mitsubishi Electric President Kei Urishima stated, “We will establish a system capable of rival global leader Infineon.”

In 2022, Renesas announced a plan to invest JPY 90 billion to convert its previously closed Kofu factory into a 12-inch wafer plant to meet the growing demand in the power semiconductor field. On April 11 this year, the factory officially resumed operations. Renesas previously estimated that the factory would start mass-producing IGBT and power MOSFET devices in 2025, doubling the company’s overall power semiconductor production capacity.

As to logic semiconductor industry, Japan’s new semiconductor player Rapidus plans to produce 2nm chip in Hokkaido, with a total investment of JPY 2 trillion, of which the Japanese government decided to subsidize JPY 920 billion. Rapidus plans to start trial production of 2nm logic chip in April 2025 and achieve large-scale mass production by 2027.

According to a report from Tom’s Hardware, it’s reported that one of GPU giant NVIDIA’s key advantages in data centers is not only its leading GPUs for AI and HPC computing but also its effective scaling of data center processors using its own hardware and software. To compete with NVIDIA’s CUDA, Chinese GPU manufacturer Moore Threads has developed networking technology aimed at achieving the same horizontal scaling of GPU compute power with its related clusters, addressing market demands.

Moore Threads was founded in 2020 by former senior executives from NVIDIA China. After being blacklisted due to U.S. export restrictions, they were unable to access advanced manufacturing processes but continued to develop gaming GPUs.

Per another report from South China Morning Post, Moore Threads has upgraded the AI KUAE data center servers, with a single cluster connecting up to 10,000 GPUs. The KUAE data center server integrates eight MTT S4000 GPUs, designed for training and running large language models and interconnected using MTLink network technology, similar to NVIDIA’s NVLink.

These GPUs use the MUSA architecture, featuring 128 tensor cores and 48GB of GDDR6 memory with a bandwidth of 768GB/s. A cluster with 10,000 GPUs can have 1,280,000 tensor cores, though the actual performance depends on various factors.

However, Moore Threads’ products still lag behind NVIDIA’s GPUs in performance. Even NVIDIA’s 2020 A100 80GB GPU significantly outperforms the MTT S4000 in computing power.

Moore Threads has established strategic partnerships with major telecommunications companies like China Mobile and China Unicom, as well as with China Energy Engineering Group and Big Data Technology Co., Ltd., to develop three new computing clusters aimed at boosting China’s AI development.

Recently, Moore Threads completed a new round of financing, raising CNY 2.5 billion (roughly USD 343.7 million) to support its expansion plans and technological development. However, the inability to access advanced processes from TSMC, Intel, and Samsung presents significant challenges for developing next-generation GPUs.

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• [News] ASML Former CEO Predicts Chip War Between China and the US May Persist for Decades
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(Photo credit: Moore Threads)

Recently, Intel, AMD, Samsung, LG Innotek, and SKC’s US subsidiary Absolics have all highly focused on glass substrate technology for advanced packaging. Due to its excellent performance, glass substrate technology has become a rising star in the field of advanced packaging.

In September 2023, Intel announced the so-called “next-generation advanced packaging glass substrate technology,” claiming it could revolutionize the entire chip packaging field. Glass substrate refers to the replacement of organic materials in organic packaging with glass, rather than replacing the entire substrate. Therefore, Intel will not mount chips on pure glass; instead, the core material of the substrate will be made of glass.

Intel stated that glass substrates could lay the foundation for achieving an astounding one trillion transistors on a single package within the next decade. Based on its promising prospect, rumors surface recently that Intel plans to mass-produce glass substrates as early as 2026. Intel has invested approximately a decade in glass substrate technology and currently has a fully integrated glass research line in Arizona, USA. The company stated that the production line costs over USD 1 billion and requires collaboration with equipment and material partners to establish a complete ecosystem. Currently, only a few companies in the industry can afford such an investment, and Intel seems to be the only company so far to successfully develop glass substrate.

Apart from Intel, SKC’s US subsidiary Absolics, AMD, and Samsung also see the broad development prospect of glass substrate.

In 2022, SKC’s US subsidiary Absolics invested around KRW 300 billion to establish the first factory dedicated to producing glass substrate in Covington, Georgia, USA. Recently, the company announced that the factory has been completed and has begun mass production of prototype products. Industry analysts believe this marks a critical moment for the global glass substrate market.

Samsung has formed an alliance composed of Samsung Electro-Mechanics, Samsung Electronics, and Samsung Display to develop glass substrate, aiming to start large-scale mass production in 2026 and commercialize the technology faster than Intel. It’s reported that Samsung Electro-Mechanics plans to install all necessary equipment on a pilot production line by September this year and commence operations in the fourth quarter.

AMD plans to launch glass substrate between 2025 and 2026 and to collaborate with global component companies to maintain its leading position. According to Korean media reports, AMD is conducting performance evaluation tests on glass substrate samples from several major global semiconductor substrate companies, intending to introduce this advanced substrate technology into semiconductor manufacturing.

Currently, with the emergence of new companies like SCHMID and the participation of laser equipment suppliers, display manufacturers, and chemical suppliers, the industry is gradually forming some new supply chains around glass core substrate, and create a diversified ecosystem.

Read more

• [News] Samsung Bullish on Glass Substrate Applications, Setting Up Production Line for Mass Production Starting in 2026

(Photo credit: Intel)

According to TrendForce’s latest memory spot price trend report, prices of DDR4 chips have risen noticeably. Though inventory levels are still high for DDR4, buyers prefer DDR4 over DDR5 due to the price discount. On the other hand, the NAND Flash spot market remains lethargic in transactions. Details are as follows:

DRAM Spot Price:

Recent developments in the spot market show that prices of DDR4 chips have risen noticeably. Even though inventory levels are still high for DDR4 products at this moment, buyers prefer DDR4 over DDR5 due to the price discount. Moreover, DRAM suppliers intend to stabilize spot prices of DDR4 products and halt the ongoing decline. Hence, there has been an improvement with respect to the price trend. Nevertheless, further monitoring of inventory levels is necessary in order to determine whether this rally will continue for a longer while. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has risen by 2.92% from US$1.918 last week to US$1.974 this week.

NAND Flash Spot Price:

The NAND Flash spot market remains lethargic in transactions, and various products are starting to experience a drop in prices after the mainstream 512Gb TLC wafer dipped below the US$3 threshold last week. With that said, buyers are still showing hesitation towards price inquiries despite slowed down decrement of spot prices, thus leaving no room for optimism on transactions. 512Gb TLC wafer spots remain unchanged in prices this week at US$3.291.

Starting from July 8^th, Samsung Electronics’ labor union, comprising over 28,000 workers, has initiated a three-day strike. However, as the dispute with Samsung escalates, the union declared earlier today that the workers plan to go on an indefinite strike, according to reports from Bloomberg and BBC.

On Monday, thousands of workers gathered outside Samsung’s chipmaking facilities south of Seoul to begin what was initially a three-day walkout aimed at securing improved pay. This marks the largest organized labor action in the conglomerate’s fifty-year history.

As the two parties are unable to reach a consensus, the three-day strike seems to further prolong. According to Bloomberg, the union announced on its website that as the management has shown no willingness to engage in dialogue, they have identified clear disruptions in production, and the company will regret this stance.

However, Samsung has challenged the assertion, saying that it will take necessary steps to prevent any disruptions in production lines. The company remains dedicated to conducting negotiations with the union in good faith, according to BBC’s report.

Regarding the impact of the Samsung strike, TrendForce analyzed that because semiconductor factories rely on automated production with low actual manpower requirements, the strike did not affect Samsung’s production. Even if the strike is extended, the current assessment is that there will still be no significant impact.

The strike does come at a sensitive time, though, as the tech giant has a busy schedule ahead. It is going to unpack its latest Galaxy lineup in Paris soon, while the company is also working on the qualification of its HBM3e products with NVIDIA.

Read more

• [News] Samsung, SK Hynix and Micron Ramp Up HBM Production, Reportedly Doubling Output Next Year
• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor

(Photo credit: Samsung)