Currently, the issue of low power consumption remains a key concern in the industry. According to a recent report by the International Energy Agency (IEA), given that an average Google search requires 0.3Wh and each request to OpenAI’s ChatGPT consumes 2.9Wh, the 9 billion searches conducted daily would require an additional 10 terawatt-hours (TWh) of electricity annually. Based on the projected sales of AI servers, AI industry might see exponential growth in 2026, with power consumption needs at least ten times that of last year.

Ahmad Bahai, CTO of Texas Instruments, per a previous report from Business Korea, stated that recently, in addition to the cloud, AI services have also shifted to mobile and PC devices, leading to a surge in power consumption, and hence, this will be a hot topic.

In response to market demands, the industry is actively developing semiconductors with lower power consumption. On memory products, the development of LPDDR and related products such as Low Power Compression Attached Memory Module (LPCAMM) is accelerating. These products are particularly suitable for achieving energy conservation in mobile devices with limited battery capacity. Additionally, the expansion of AI applications in server and automotive fields is driving the increased use of LPDDR to reduce power consumption.

In terms of major companies, Micron, Samsung Electronics, and SK Hynix are speeding up the development of the next generation of LPDDR. Recently, Micron announced the launch of Crucial LPCAMM2. Compared to existing modules, this product is 64% smaller and 58% more power-efficient. As a low-power dedicated packaging module that includes several latest LPDDR products (LPDDR5X), it is a type of LPCAMM. LPCAMM was first introduced by Samsung Electronics last year, and it is expected to enjoy significant market growth this year.

Currently, the Joint Electron Device Engineering Council (JEDEC) plans to complete the development of LPDDR6 specifications within this year. According to industry news cited by the Korean media BusinessKorea, LPDDR6 is expected to start commercialization next year. The industry predicts that LPDDR6’s bandwidth may more than double that of previous generation.

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• [News] South Korea Reportedly Unveils USD 19 Billion Semiconductor Subsidy to Boost R&D and Infrastructure Investment
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: SK Hynix)

Samsung’s HBM, according to a report from TechNews, has yet to pass certification by GPU giant NVIDIA, causing it to fall behind its competitor SK Hynix. As a result, the head of Samsung’s semiconductor division was replaced. Although Samsung denies any issues with their HBM and emphasizes close collaboration with partners, TechNews, citing market sources, indicates that Samsung has indeed suffered a setback.

Samsung invested early in HBM development and collaborated with NVIDIA on HBM and HBM2, but sales were modest. Eventually, the HBM team, according to TechNews’ report, moved to SK Hynix to develop HBM products. Unexpectedly, the surge in generative AI led to a sharp increase in HBM demand, and SK Hynix, benefitting from the trend, seized the opportunity with the help of the team.

Yet, in response to the rumors about changes in the HBM team, SK Hynix has denied the claims that SK Hynix developed HBM with the help of the Samsung team and also denied the information that Samsung’s HBM team transferred to SK Hynix. SK Hynix further emphasized the fact that SK Hynix’s HBM was developed solely by its own engineers.

Samsung’s misfortune is evident; despite years of effort, they faced setbacks just as the market took off. Samsung must now find alternative ways to catch up. The market still needs Samsung, as noted by Wallace C. Kou, President of memory IC design giant Silicon Motion.

Kou reportedly stated that Samsung remains the largest memory producer, and as NVIDIA faces a supply shortage for AI chips, the GPU giant is keen to cooperate with more suppliers. Therefore, it’s only a matter of time before Samsung supplies HBM to NVIDIA.

Furthermore, Samsung also indicated in a recent statement, addressing that they are conducting HBM tests with multiple partners to ensure quality and reliability.

In the statement, Samsung indicates that it is in the process of optimizing their products through close collaboration with its customers, with testing proceeding smoothly and as planned. As HBM is a customized memory product, it requires optimization processes in line with customers’ needs.

Samsung also states that it is currently partnering closely with various companies to continuously test technology and performance, and to thoroughly verify the quality and performance of its HBM.

On the other hand, NVIDIA has various GPUs adopting HBM3e, including H200, B200, B100, and GB200. Although all of them require HBM3e stacking, their power consumption and heat dissipation requirements differ. Samsung’s HBM3e may be more suitable for H200, B200, and AMD Instinct MI350X.

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• [News] Reasons for Samsung’s HBM Chips Failing Nvidia Tests Revealed, Reportedly Due to Heat and Power Consumption Issues
• [News] HBM Boom May Lead to DRAM Shortages in the Second Half of the Year

(Photo credit: SK Hynix)

Sales of semiconductor manufacturing equipment in Japan have been reportedly strong, with April 2024 witnessing the largest increase in sales in 17 months, continuing to surpass the JPY 300 billion mark and setting a new record for the highest monthly sales. The sales volume for the period from January to April also reached a historical high for the same period.

The Semiconductor Equipment Association of Japan (SEAJ) announced on May 27th that the sales of Japanese-made semiconductor equipment in April 2024 (three-month moving average, including exports) reached JPY 389.106 billion, an increase of 15.7% compared to the same month last year. This marks the fourth consecutive month of growth, showing the largest increase in 17 months (since November 2022), with a remarkable growth rate of 19.1%.

Monthly sales have exceeded JPY 300 billion for the sixth consecutive month, surpassing the previous record of JPY 380.929 billion in September 2022, setting a new historical high for single-month sales.

Compared to the previous month (March 2024), sales grew by 6.4%, marking the sixth consecutive month of month-on-month growth.

The cumulative sales of Japanese semiconductor equipment from January to April 2024 reached JPY 1.387079 trillion, a 9.4% increase compared to the same period last year, setting a new historical high for this period.

Japan’s global market share of semiconductor equipment (calculated based on sales) stands at 30%, making it the second-largest in the world, following the United States.

In a financial report press release on May 10, Japanese chip equipment giant Tokyo Electron (TEL) indicated that the increased demand for DDR5 and HBM from the second half of this year is expected to drive a recovery in investment in the leading-edge DRAM.

As a result, the global market size for front-end chip manufacturing equipment (Wafer Fab Equipment; WFE) in 2024 is projected to grow by 5% year-on-year to approximately 100 billion USD, matching the current historical high recorded in 2022 (around USD 100 billion). Additionally, with continued growth in AI servers and a recovery in demand for PCs and smartphones, the WFE market is anticipated to see a double-digit increase (over 10%) in 2025 compared to 2024.

In a financial report press release on May 9, semiconductor equipment company Screen Holdings stated that due to investments in mature processes in China and investments in the most advanced processes in Taiwan, the WFE market is expected to grow in 2024, with an estimated annual increase of about 5%.

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• [News] Micron Reportedly Set to Build New DRAM Plant in Hiroshima, Japan, Operational Expected by End of 2027
• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition

(Photo credit: TEL)

According to a report from a Japanese media outlet The Daily Industrial News, it reported that Micron Technology plans to build a new plant in Hiroshima Prefecture, Japan, for the production of DRAM chips, aiming to begin operations as early as the end of 2027.

The report estimates the total investment to be between JPY 600 billion and 800 billion (roughly USD 5.1 billion). Construction of the new plant is scheduled to begin in early 2026, with the installation of extreme ultraviolet (EUV) lithography equipment.

The Japanese government has approved subsidies of up to JPY 192 billion (roughly USD 1.3 billion) to support Micron’s production of next-generation chips at its Hiroshima plant. The Ministry of Economy, Trade and Industry stated last year that this funding would help Micron incorporate ASML’s EUV equipment, with these chips being crucial for powering generative AI, data centers, and autonomous driving technology.

Micron initially planned to have the new plant operational by 2024, but this schedule has evidently been adjusted due to unfavorable market conditions. Micron, which acquired Japanese DRAM giant Elpida in 2013, employs over 4,000 engineers and technicians in Japan.

Beyond 2025, Japan is set to witness the emergence of several new plants, including Micron Technology’s new 1-gamma (1γ) DRAM production facility in Hiroshima Prefecture.

JSMC, a foundry subsidiary of Powerchip Semiconductor Manufacturing Corporation (PSMC), is collaborating with Japan’s financial group SBI to complete construction by 2027 and begin chip production thereafter.

Additionally, Japanese semiconductor startup Rapidus plans to commence production of 2-nanometer chips in Hokkaido by 2027.

Japan’s resurgence in the semiconductor arena is palpable, with the Ministry of Economy, Trade, and Industry fostering multi-faceted collaborations with the private sector. With a favorable exchange rate policy aiding factory construction and investments, the future looks bright for exports.

However, the looming shortage of semiconductor talent in Japan is a concern. In response, there are generous subsidy programs for talent development.

Read more

• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)

According to foreign media reports on May 25, Russia’s first lithography machine has been completed and is currently undergoing testing. Vasily Shpak, Deputy Minister of Industry and Trade of the Russian Federation, pointed out that this equipment can ensure the production of 350nm (0.35μm) chips.

350nm chip is said to be relatively lagging by modern standards, but it can still apply to various industries such as automotive, energy, and telecommunications. The successful development of this lithography machine represents a milestone for Russia in achieving self-sufficient chip production in the future.

Currently, the global lithography machine market is still dominated by ASML, Nikon, and Canon.

According to publicly available information from foreign media, Russia has two main wafer fabs at present, Mikron and Angstrem. Mikron provides 65-250nm chip manufacturing capabilities, while Angstrem, which went bankrupt and reorganized in 2019, provides 90-250nm chip manufacturing with an 8-inch wafer fab. Both companies mainly offer chips for military, aerospace, and industrial applications. Therefore, the new home-made lithography equipment is expected to be supplied to these two companies.

Down the road, Russia aims to manufacture a lithography machine that can support the 130nm process by 2026. Previously, Russia announced the plans to achieve a 65nm chip node process by 2026, 28nm chip manufacturing domestically by 2027, and 14nm domestic chip manufacturing by 2030.

(Photo credit: TASS)