Samsung and SK hynix, which have been rapidly advancing in the High-Bandwidth Memory (HBM) arena, now confirm their intention to incorporate hybrid bonding in the upcoming 3D DRAM technology, according to the latest report by The Elec.

While the current technology uses micro bump to connect DRAM modules, hybrid bonding, which could stack chips vertically by using through-silicon-via (TSV), can eliminate the need for micro bumps, significantly reducing chip thickness.

According to an earlier report by The Korean Economic Daily, currently, DRAM comprises up to 62 billion cells on a substrate with densely integrated transistors on a flat plane, posing challenges such as current leakage and interference.

In contrast, 3D DRAM stacks transistors into multiple layers, which is expected to widen the gaps between them, thereby reducing leakage and interference.

Therefore, to replace the current horizontal placement, a 3D DRAM chip triples capacity per unit area by vertically stacking cells. This also differs from HBM, which vertically connects multiple DRAM chips.

During the International Memory Workshop 2024 conference held in Seoul last week, SK hynix announced its intention to implement hybrid bonding in the production of 3D DRAM. On the other hand, Samsung plans to launch 3D DRAM in 2025, according to an earlier report by The Korean Economic Daily.

Meantime, Samsung is also exploring 4F Square DRAM and plans to integrate hybrid bonding into the production process. If successful, the tech giant could reduce die surface area by 30% compared to the currently commercialized 6F2 DRAM, according to sources cited by The Elec. Samsung is said to implement the 4F2 structure in DRAM using 10nm or finer nodes.

Read more

• [News] Samsung Considers Hybrid Bonding a Must for 16-stack HBM
• [News] The Quiet Beginning of the 3D DRAM Market Share Battle

(Photo credit: SK hynix)

According to TrendForce’s latest memory spot price trend report, neither the spot price of DRAM nor that of NAND flash shows much sign of a turnaround in the short term. It is also worth noting that the Chinese government has been cracking down on smuggling activities since the end of May, putting more pressure on the spot prices of reball DRAM chips. Details are as follows:

DRAM Spot Price:

The price trend of the spot market continues to deviate from that of the contract market, showing no signs of a turnaround. Apart from module houses carrying too much inventory, channel markets for consumer products also remain weak and have yet to see the effects of the impending peak season. Furthermore, the Chinese government has been cracking down on smuggling activities in the spot market since the end of May. As a result, spot prices of reball DRAM chips continue to drop. A rebound is not expected in the short term. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has fallen by 2.54% from US$1.881 last week to US$1.835 this week.

NAND Flash Spot Price:

Enervated market transactions and sufficient inventory among channels have prevented a revitalization in demand from happening, despite spot suppliers’ willingness in compromising on prices. This has led to an ongoing divergence between spot and contract prices. Market participants are now on the fence regarding whether the market would exhibit demand for inventory replenishment in 3Q24. 512Gb TLC wafer spots have dropped by 0.57% this week, arriving at US$3.309.

As tech heavyweights eagerly pursue more market share in the AI sector, the battle for talents in the semiconductor industry has also heated up. According to the latest report by The Chosun Daily, citing LinkedIn data as of June 18, NVIDIA has become the hottest tech talent hub, not only drawing talents from semiconductor giants, but recruiting from memory companies in full swing.

According to the report, NVIDIA employs 89 former TSMC employees, while only 12 former NVIDIA employees have joined TSMC. Moreover, comparing with the number of former NVIDIA employees now at Samsung (278), there are 515 NVIDIA employees coming from Samsung Electronics, which indicates a significant talent migration to the GPU giant.

Regarding the talent war between NVIDIA and Intel, the former has attracted as many as 2,848 employees from Intel, whereas only 544 former NVIDIA employees have joined Intel.

NVIDIA also attracts talents with its charisma in AI from other memory giants. The LinkedIn data cited by the report shows that there are 38 NVIDIA employees previously with SK hynix, with none moving in the opposite direction. In addition, NVIDIA has attracted 159 employees from Micron, whereas only 38 former NVIDIA employees have joined Micron.

Interestingly enough, though Samsung lags behind in the competition with TSMC regarding the advanced nodes, it seems to be attractive to talents from the world’s largest foundry. Data show that there are 195 TSMC employees transitioning to Samsung, while only 24 former employees have joined TSMC.

An industry insider cited by the report observed that Korean semiconductor companies are vigorously recruiting for high-performance memory positions, such as those involving HBM. Moreover, a growing number of master’s and doctoral-level semiconductor experts in South Korea are joining the industry, showing a trend where talent moves from academia to local companies and then to international firms.

(Photo credit: NVIDIA)

Samsung is reportedly mulling to update its fabrication capabilities in the Taylor fab near Austin from 4nm to 2nm, and delaying the related equipment orders, according to reports from Tom’s Hardware and Korea media outlet ETnews. The decision is said to be made in Q3 2024.

Samsung’s initial projection, announced in 2021 when the investment plan was disclosed, had anticipated the Taylor plant to start its mass production of 4nm in the second half of 2024. But afterwards, the tech giant has reportedly postponed the schedule to 2025.

Now, according to the latest reports, with the AI hardware race intensifying and Nvidia, one of Samsung’s biggest clients, keeps advancing in its GPU platforms, 4nm production may no longer suffice. Therefore, Samsung has postponed its equipment orders for the Taylor fab as it considers the upgrade from 4nm to 2nm. The plant may not begin operations until 2026, US local media MySA noted.

According to information from Samsung’s press release, the company plans to provide one-stop solution for clients to expedite their production of AI chips, while its updated 2nm node with backside power delivery is expected to enter the market in 2027. SF4U, its high-value 4nm variant that offers PPA improvements by incorporating optical shrink, plans to enter mass production in 2025.

Earlier in April, the U.S. government announced that it will provide up to USD 6.4 billion in subsidies to Samsung for expanding advanced chip production capacity at its Texas plant, while it previously approved subsidies of up to USD 8.5 billion for US chip giant Intel and USD 6.6 billion for TSMC, respectively.

Regarding major semiconductor companies’ capacity expansion plans in the U.S., TSMC’s new fab in Arizona aims to complete all preparations for mass production by the end of this year, and commences mass production using the 4-nanometer process in the first half of 2025. On the other hand, TSMC also plans to build a third fab in Arizona, which will use 2nm process or even more advanced technologies to manufacture wafers for customers, though the date for construction has yet to be disclosed.

Meanwhile, Intel plans to mass-produce its 20A and 18A nodes at its Arizona and Ohio plants in 2024 and 2025, respectively.

(Photo credit: Samsung)

According to Chinese media ChinaFund, there are reports that TSMC is increasing prices for its advanced 3nm and 5nm process nodes and advanced packaging. The report also cites a Morgan Stanley Securities prediction that Hua Hong Semiconductor may raise prices by 10% in the second half of the year.

Notably, China’s wafer foundries are showing signs of reducing domestic competition. While foundry price increases are not yet confirmed, utilization rates at major foundries have significantly improved, with many operating at full capacity or even exceeding 100%.

Industry sources cited by ChinaFund believe that the sustained increase in utilization rates and full capacity at some foundries could lead to potential price hikes in the future.

TSMC was the first to signal a price hike in the wafer foundry sector. Reports indicate that the global leader in foundry will increase prices for its advanced 3nm and 5nm nodes, with a potential 5% increase for 3nm and a 10%-20% rise for advanced packaging next year.

TSMC’s 5nm node continues to receive AI semiconductor orders, maintaining high capacity utilization.

At the same time, a recent Morgan Stanley report stated that Hua Hong Semiconductor, one of China’s leading foundries, is currently operating at over 100% capacity and may raise wafer prices by 10% in the second half of this year.

In an interview with ChinaFund, United Nova Technology CEO Michael Zhao stated that the semiconductor industry’s basic pattern of change starts with memory, then digital, and finally analog ICs. “Whether it’s a downturn or recovery, this is the sequence,” he emphasized.

“We are experiencing the same trend in the power semiconductor sector. We were at full capacity in Q4 last year and saw a significant recovery in Q1 this year.”

According to tracked data cited by ChinaFund, power semiconductor manufacturers have collectively raised prices this year. Sanliansheng increased prices by 10%-20%, Bluecolor by 10%-18%, Gaoge Microchip by 10%-20%, and Jiejie Microelectronics raised prices for its Trench MOS by 5%-10%.

For the memory sector, TrendForce forecasts that Q2 DRAM contract prices will rise by 13%-18%, and NAND Flash contract prices by 15%-20%.

Huafu Securities projects that, given the gradual increase in foundry utilization rates and rising inventory levels in consumer electronics and other fields, end-market demand will clearly drive growth across the semiconductor supply chain.

ChinaFund reports that several chip companies have recently announced price increases, with some as high as 20%. For instance, Yaxin Microelectronics, Chiplink, and iCM have all issued price hike notices.

(Photo credit: SMIC)