Samsung, as per a report from the global media outlet wccftech, has decided to enter the next generation of packaging technology by commencing R&D works for the adoption of “Glass Substrate” by 2026.

The report further indicates that Samsung’s preparation to enter the glass substrate industry for advanced packaging is not actually a new endeavor. As several years ago, competitor Intel had already made strides in this area. The commencement of significant production is expected to begin around 2030. In preparation for large-scale production, Intel has already begun establishing production lines in Arizona, investing USD 1 billion.

To address the current market’s capacity gap, Samsung has also initiated plans to commence glass substrate production.

Currently, under the Samsung Group umbrella, Samsung Electronics is in the process of implementing construction plans for production lines and is also conducting research and development on the application of glass substrates in the field of AI chips.

Additionally, Samsung Group is coordinating various departments within its conglomerate, such as Samsung Display, to further ensure the smooth completion of research and development as well as production efforts related to glass substrates.

The report indicates that through the application of advanced packaging technology using glass substrates, there are several advantages over traditional organic substrate packaging techniques, and it can overcome more technical bottlenecks.

For instance, glass substrates can offer higher strength, ensuring greater durability and reliability, as well as higher interconnectivity. Moreover, glass substrates are thinner than typical organic substrates, enabling the linking of more small chips in advanced packaging technology.

Previously, Intel also elaborated on the glass-based substrate packaging technology. According to Intel’s previous press release, glass substrates can tolerate higher temperatures, offer 50% less pattern distortion, and have ultra-low flatness for improved depth of focus for lithography, and have the dimensional stability needed for extremely tight layer-to-layer interconnect overlay. As a result of these distinctive properties, a 10x increase in interconnect density is possible on glass substrates. Further, improved mechanical properties of glass enable ultra-large form-factor packages with very high assembly yields.

However, despite the many application advantages of glass substrates in the current market, the R&D efforts of various companies have encountered difficulties, impacting the market’s application status.

Currently, Samsung Electronics expects to mass-produce glass substrate products in 2026. Whether it can replace traditional organic substrates and advance packaging technology development will be a focal point of market attention.

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• [News] Glass Substrates in Advanced Packaging With Intel Leads, TSMC Quietly Innovates

(Photo credit: Intel)

As the pressure from the United States to strengthen export controls on semiconductor manufacturing equipment to China continues to grow, as per a report from Yonhap News Agency (YNA), the United States has reportedly urged allies such as Japan, the Netherlands, Germany, and South Korea to join forces and expand the scope of their containment measures, extending to equipment, raw materials, optical components, and other areas.

While countries like the Netherlands, Japan, and Germany have yet to make their positions known, the same report indicates that the South Korean government, in efforts to maintain stability in its relationship with the United States, is considering cooperation with U.S. efforts to impose export controls on semiconductor equipment to China.

YNA’s report has indicated that, since October 2022, when the U.S. government announced a ban on American companies exporting equipment and technology essential for advanced semiconductor manufacturing to China, it has continuously urged its allies to implement similar levels of export controls on exports to China.

Sources cited by the report indicate that initially, the Netherlands and Japan, which have high levels of semiconductor technology, were the primary targets of U.S. pressure. However, starting from the second half of 2023, the pressure from the United States on South Korea has intensified, even directly naming specific South Korean companies.

In February this year, the U.S. Department of Commerce and the South Korean Ministry of Trade, Industry, and Energy reportedly held negotiations on this issue. Sources cited in YNA’s report revealed that the U.S. side is concerned that South Korea could become a loophole in its export controls on semiconductor technology to China, and South Korea is working to address U.S. concerns.

The same sources stated that although the South Korean government has not yet made a decision on this matter, considering national interests and taking into account the U.S. position, it is at least inclined to “partially” meet U.S. demands.

Per the same report, the South Korean government is also concerned that measures related to export controls on China will adversely affect the competitiveness of the South Korean semiconductor industry. South Korean companies’ semiconductor equipment technology is already inferior to that of the United States, Japan, and the Netherlands. If exports to China, particularly crucial ones, are further restricted, it will undoubtedly worsen the situation for the semiconductor industry in South Korea.

Yeo Han-koo, a senior researcher at the Peterson Institute for International Economics (PIIE) who formerly served as Director-General of Trade Negotiations at the South Korean Ministry of Trade, Industry, and Energy, noted that considering the recent dynamics in U.S.-China relations and international geopolitical factors, South Korea faces challenges in completely disengaging. However, South Korea aims to minimize losses for its companies to the greatest extent possible and is committed to exploring reasonable compromise solutions with the United States.

On the other hand, as per TrendForce’s previous report, China is focusing aggressively on mature process technologies (28nm and older), particularly in response to export controls on advanced equipment by the US, Japan, and the Netherlands. By 2027, China’s share in mature process capacity is expected to reach 39%, with room for further growth if equipment procurement proceeds smoothly.

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(Photo credit: iStock)

There are market rumors suggesting that Samsung Electronics plans to switch to the chip manufacturing technology used by SK Hynix in an effort to catch up with competitors in the increasingly heated competition of high-bandwidth memory (HBM).

As per Reuters’ report on March 13th, demand for HBM has surged due to the popularity of Generative AI. However, while SK Hynix and Micron Technology have successively finalized supply agreements with NVIDIA Corp., Samsung unexpectedly missed out. It is reported that Samsung’s HBM3 has yet to pass NVIDIA’s quality tests.

Reuters report further cited sources indicating that one of the reasons for Samsung’s lagging progress is its insistence on using Non-Conductive Film (NCF) technology, which has led to some production issues. In contrast, SK Hynix has taken the lead by switching to mass reflow molded underfill (MR-MUF) technology, addressing the weaknesses of NCF and becoming the first supplier of HBM3 chips to NVIDIA.

The report states that Samsung is in talks with several material suppliers, including Nagase Corporation from Japan, in hopes of purchasing MUF materials. It is revealed that Samsung intends to utilize both NCF and MUF technologies in its latest HBM chips.

Regarding the matter, both of NVIDIA and Nagase declined to comment.

As for the current landscape of the HBM market, starting in 2024, the market’s attention will shift from HBM3 to HBM3e, with expectations for a gradual ramp-up in production through the second half of the year, positioning HBM3e as the new mainstream in the HBM market.

According to TrendForce’s latest report, SK hynix led the way with its HBM3e validation in the first quarter, closely followed by Micron, which plans to start distributing its HBM3e products toward the end of the first quarter, in alignment with NVIDIA’s planned H200 deployment by the end of the second quarter.

Samsung, slightly behind in sample submissions, is expected to complete its HBM3e validation by the end of the first quarter, with shipments rolling out in the second quarter. With Samsung having already made significant strides in HBM3 and its HBM3e validation expected to be completed soon, the company is poised to significantly narrow the market share gap with SK hynix by the end of the year, reshaping the competitive dynamics in the HBM market.

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(Photo credit: SK Hynix)

In recent years, influenced by complex international dynamics and the need to safeguard supply chain security, Southeast Asian countries such as Singapore, Malaysia, and Vietnam have become prime locations for numerous semiconductor giants to establish overseas operations. Now, the Philippines may join the ranks of these nations.

Recently, U.S. Secretary of Commerce Gina Raimondo addressed her desire to assist the Philippines in doubling its semiconductor facilities to lessen the geographic concentration of the global chip supply chain.

Previously, according to the press release of the U.S. Department of Commerce, Raimondo has announced the plan to invest USD 1 Billion in Philippines.

“The Indo-Pacific includes some of the most dynamic economies in the world. It was an honor to lead the first-ever trade mission of this nature to the Philippines and to underscore the immense potential, which is evident in the more than $1 billion of investments from this mission alone,” said Raimondo.

According to Taiwantrade’s Data, it has indicated that the semiconductor and electronics industry is the top-performing sector among the Philippines’ export commodities, accounting for approximately 60% of total commodity exports.

The semiconductor industry in the Philippines primarily focuses on the assembly and testing sector. With a high literacy rate and a young workforce proficient in English, the Philippines has become a significant assembly and testing hub for global semiconductor giants such as Amkor, Intel, ADI, and TI (Texas Instruments).

Geographically, the semiconductor industry in the Philippines is concentrated in four main regions: Manila, Calabarzon, Northern/Central Luzon, and Cebu. Among these regions, Manila stands out as the primary hub, hosting assembly and testing facilities for globally renowned companies like Amkor, Onsemi, as well as Toshiba’s hard drive assembly plant.

Currently, the Philippines has 13 semiconductor assembly, testing, and packaging facilities. Most of the products produced are exported to other regions for assembly or application. The integrated circuits (ICs) used in these facilities mainly come from Taiwan, the United States, and Japan, with finished products primarily exported to Singapore, China, and Japan.

However, the Philippines is not content with just the assembly and testing sector. In February of this year, it was previously reported by Philippine Board of Investments (BOI) in its press release, stating that the BOI would collaborate with the United States to expand its semiconductor capabilities, including the construction of its first fab.

The BOI aims to build a laboratory-scale fab. This facility will provide general manufacturing process technology to encourage local semiconductor startups and train semiconductor engineers.

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(Photo credit: Intel)

Intel has reportedly retained the export licenses that would have prohibited them from selling laptop processor (CPU) chips to the Chinese telecommunications giant Huawei. This signifies that Intel has temporarily preserved its business of providing chips worth hundreds of millions of dollars to Huawei.

According to sources cited by Reuters on March 12th, the US placed Huawei on a trade blacklist in 2019, alleging violations of US sanctions. However, at the end of 2020, the US Department of Commerce granted special licenses to some US suppliers, including Intel, allowing them to sell certain technology products to Huawei.

Still, some sources cited in the report believe that Intel’s license is expected to expire later this year and is unlikely to be renewed.

The sources cited in the same report also stated that Intel’s competitor, AMD, had applied for a similar license to sell comparable chips in early 2021 but did not receive approval from the US Department of Commerce. AMD subsequently protested, claiming that the US government’s differential treatment was unfair.

Regarding this matter, Intel, Huawei, the Commerce Department and the White House declined to comment. AMD did not respond to a request for comment.

As per TrendForce, Intel is forecasted to hold a market share of 68.8% in the CPU market in 2024, while AMD is expected to have a share of 20.2%.

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(Photo credit: iStock)