DRAM giant Nanya Technology held its shareholder meeting earlier today, during which Chairman Chia-Chau Wu reported on the company’s operations. According to a report from UDN, He mentioned that despite challenges such as unfavorable market conditions, geopolitical tensions, and the US-China trade conflict, Nanya Technology experienced a transition from profit to loss last year.

Nevertheless, the company continues to possess strong technological capabilities. This year, Nanya plans to introduce more products using the 10nm 1B process. Additionally, the 10nm 1C process is set to complete its first product design by the end of this year and begin trial production early next year. In 2026, Nanya will introduce new facilities, and by integrating miniaturization and Through-Silicon Via (TSV) processes, it will enter the high-capacity DRAM module market to meet the demand from the server market.

Wu emphasized that the 1B process products are Nanya Technology’s key expansion focus this year. In addition to promoting 8Gb/4Gb DDR4 to the personal computer and bare die application markets, the 16Gb DDR5 will initially target mainstream markets, including personal computers and servers.

Wu further highlighted that Nanya Technology continues to invest in research and development during the industry’s adjustment period to strengthen its future competitiveness.

Currently, in addition to developing three products under the second-generation 10nm (1B) process, Nanya Technology is also developing four other products: 16Gb DDR5 and miniaturized versions, 16Gb LPDDR4, 16Gb LPDDR5, and 4Gb DDR3, which will also gradually enter trial production.

He added that this year, Nanya Technology will simultaneously develop Through-Silicon Via (TSV) process technology. In the future, by combining the miniaturized DDR5 with the TSV process, Nanya aims to produce high-capacity DRAM modules to meet the demand of the server market.

Furthermore, the third-generation 10nm (1C) process technology is on track, with the design of the first 16Gb DDR5 product expected to be completed by the end of the year and trial production beginning early next year.

To support the transition to the 1B process and the construction of new facilities, Nanya Technology’s capital expenditure for this year is approximately TWD 26 billion (roughly USD 805.2 million), with less than half of the budget allocated to production equipment.

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• [News] Apple Reportedly Releases Supply Chain List, Nanya Technology, Lotes, and Novatek Not Included

(Photo credit: Nanya Technology)

As reported by the South Korean tech media outlet TheElec, South Korean smartphone giant Samsung is said to be planning to increase the production of phones manufactured by joint development manufacturers (JDM) in China from 4.4 million to 6.7 million units this year. The increased output from its JDM partners indicates that outsourced orders will account for 25% of Samsung’s smartphone production target for the year.

Reportedly, its JDM partners typically handles the production of low-end smartphones, being responsible for design and component procurement while Samsung provides the brand. For the past couple of years, the company has used JDM partners like Wintech to reduce its production cost for smartphones.

Furthermore, collaborating with JDM partners also enables Samsung to leverage the local manufacturers’ expertise in understanding trends. For instance, with the assistance of JDM partnerships, the Galaxy C55 was optimized locally for the Chinese market.

The number of Samsung smartphones produced by these JDM partners has also been steadily increasing in recent years. Data indicates that in 2019, JDM-produced phones accounted for less than 7% of Samsung’s smartphone output, but this year, that proportion has risen to 25%.

Regarding the current smartphone market in China, the China Academy of Information and Communications Technology (CAICT) has released its April 2024 analysis of the Chinese mobile phone market, showing a year-on-year increase of 28.8% in mobile phone shipments to 24.071 million units during the period.

According to the data from CAICT, in terms of brands, local brands dominated with 85.5% of the shipments, approximately 20.576 million units, while overseas brands, including Apple, accounted for nearly 3.5 million units.

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• [News] Continued Slump in iPhone Demand in China – February Shipments Reportedly Plunge by 33%

(Photo credit: Samsung)

Samsung’ Foundry Business Division is set to host a Foundry and SAFE Forum in Silicon Valley, U.S., on June 12-13. According to Business Korea, the tech giant would reveal its latest technology roadmap, reportedly moving up its 1nm mass production schedule from 2027 to 2026.

Samsung’s SF1.4 process, which is said to compete with TSMC’s 1.4nm, originally targets to start mass production in 2027. Now the company seems to make an update and move the schedule ahead.

As per Samsung’s previous roadmap, the 2-nanometer SF2 process is set to debut in 2025. Compared to the second-generation 3GAP process at 3 nanometers, it offers a 25% improvement in power efficiency at the same frequency and complexity, as well as a 12% performance boost at the same power consumption and complexity, while reducing chip area by 5%.

In a previous report, Business Korea noted that Samsung had already secured the first batch of orders for 2nm AI chips, which goes to Japanese AI startup Preferred Networks.

On the other hand, TSMC, the leading semiconductor foundry, has also reportedly secured its 2nm order, as its 2nm process in on track for mass production in 2025.

Industry sources indicated that Apple’s Chief Operating Officer, Jeff Williams, made a visit to TSMC in May to secure the latter’s advanced manufacturing capacity, potentially 2nm process, booked for Apple’s in-house AI-chips, according to a report by Economic Daily News.

TSMC plans to reach the A16 node (1.6nm) in 2027. According to a previous report by TechNews, citing foreign media, TSMC is expected to start mass production for 1.4nm around 2027-2028. Recent reports from Economic Daily News indicated that TSMC intends to establish a factory in the Science Park of Taibao City, Chiayi County in central Taiwan to produce 1nm chips.

▲The advanced technology roadmap of TSMC, as shown in the 2024 Technology Symposium (Source: TSMC)

(Photo credit: Samsung)

According to a report from Reuters, Malaysian Prime Minister Anwar Ibrahim announced the National Semiconductor Strategy on May 28th, which includes providing at least USD 5.3 billion in financial support and training 60,000 semiconductor engineers, aiming to make Malaysia a global chip hub.

Over the next 5 to 10 years, at least MYR 25 billion (roughly USD 5.33 billion) will be allocated to cultivate chip talent and strengthen local businesses, with funding from Malaysia’s sovereign wealth funds such as Khazanah Nasional.

As per the semiconductor strategy, Malaysia plans to train 60,000 talents covering all aspects of chip manufacturing, including IC design, packaging, and testing. Universities and enterprises will participate in the training, and the government will also support local engineers in engaging in chip design IP.

Prime Minister Anwar revealed that Malaysia intends to establish at least 10 local  companies in design and advanced packaging for chips. If Malaysia wants to attract investment from global chip giants, cultivating more local semiconductor talent is crucial, especially as the country aims to enhance its advanced chip manufacturing capabilities.

The Malaysian government aims to attract at least MYR 500 billion (roughly USD 106.5 billion) in funds through domestic direct investment (DDI) and foreign direct investment (FDI) into fields such as chip design, advanced packaging, and manufacturing equipment.

Amidst the U.S.-China rivalry and other geopolitical tensions, global companies are seeking to diversify their supply chains. Facing competition between the U.S. and China, Malaysia is reportedly keen to maintain a neutral position in the semiconductor supply chain landscape.

Malaysia began engaging in the semiconductor industry over 50 years ago. According to the Malaysian Investment Development Authority (MIDA), the country currently provides 13% of global testing and packaging.

In December 2021, U.S. chip giant Intel announced an investment of over USD 7 billion to build a chip packaging and testing plant in Malaysia, expected to start production this year. Last year, German semiconductor giant Infineon announced an investment of EUR 5 billion to establish the world’s largest 200mm silicon carbide power chip plant in Malaysia over the next five years.

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• [News] Overseas Expansion of Testing and Packaging Facilities – Japan, Malaysia, and Singapore Emerge as Top Choices
• [News] Nikkei Highlights Japan’s Chip Subsidies Exceeding GDP Ratio of US, Germany, and France

(Photo credit: ASE Group)

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)