As Samsung plans to unveil its next-gen flagship smartphone, Galaxy S25 series, in early 2025, more details regarding the product have surfaced. Months ahead of the launch, Samsung is said to abandon the dual-processor strategy and equip the entire series with Qualcomm’s new Snapdragon 8 Gen 4 processor. The latest rumor, however, may be related to the yield issue in its 1b DRAM intended to be used in the Galaxy S25 series.

According to a report by Korean media outlet ZDNet, the tech giant might be facing difficulties in its cutting-edge mobile DRAM, the 1b DRAM (5^th-generation 10nm-class DRAM). Last month, Samsung Electronics’ Mobile eXperience (MX) Division reportedly raised concerns with the Device Solutions (DS) Division about delays in the delivery of 1b-based LPDDR (low-power DRAM) samples.

Samsung has been developing 1b DRAM for a period of time, as the company is said to begin mass production of the 16Gb 1b DDR5 DRAM in May last year, ZDNet notes. Afterwards, Samsung started to develop the 32Gb 1b DRAM in September, targeting the high-performance computing (HPC) market, the report states.

Meanwhile, it has been working on developing 1b LPDDR products for mobile devices, primarily targeting the Galaxy S25 series.

However, recent issues seem to have disrupted these plans, the report suggests. It notes that while the DS Division was expected to deliver 1b LPDDR samples in various capacities, including 12Gb and 16Gb, to the MX Division by last month, they were unable to provide the necessary quantities due to yield problems.

Industry experts cited by the report indicate that semiconductors generally require a yield rate above 80% to support stable and cost-effective mass production and supply. While the exact yield rate of Samsung’s mobile 1b DRAM hasn’t been revealed, it is likely to fall well below the target, which prompts Samsung’s MX Division to reevaluate the schedule and the DRAM adoption plan, the report suggests.

According to a previous report by TheElec, though concerns have been raised regarding its 1b DRAM manufacturing, being ambitious on its HBM development, Samsung targets to tape out HBM4 by the end of this year, while it intends to adopt the 10nm 6th-generation (1c) DRAM to manufacture the memory chip.

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• [News] Samsung Rumored to Abandon Exynos 2500, Equipping Entire S25 Series with Snapdragon

(Photo credit: Samsung)

Recently, Samsung Electro-Mechanics announced that by 2026, the sales share of its high-end Flip Chip Ball Grid Array (FCBGA) substrates for server and artificial intelligence will exceed 50%.

FCBGA is an integrated circuit (IC) packaging technology，which involves flipping the chip and connecting it to the packaging substrate, then using spherical solder bumps to attach the package to the substrate.

It is mainly used in the packaging of high-density, high-speed, multi-functional large-scale IC chips, offering advantages such as high integration, small size, high performance, and low power consumption.

After a prolonged period of inventory cutting, the balance between semiconductor supply and demand sides has improved, with market demand gradually recovering.

The strong demand in fields such as high-speed network, server, smart driving, and optical module has continuously energized the development of high-multilayer high-speed boards and advanced HDI boards, which in turn is gradually boosting the prosperity of the packaging substrate industry.

As one of the main packaging methods for core electronic components like PC central processing unit, memory, and graphics processor, FCBGA boasts significant market potential in the development of 5G communications, artificial intelligence, virtual reality, and other fields.

Globally, IDM companies such as Micron, Infineon, and NXP have conducted extensive research and development in the FCBGA packaging field, while specialized packaging and testing companies like ASE Group, JCET, and Amkor have also developed various FCBGA technologies.

It is reported that numerous major international semiconductor companies, including Intel, Qualcomm, NVIDIA, AMD, and Samsung, are utilizing FCBGA technology.

Intel is one of the pioneers of FCBGA technology, first applying it to processors in 1997, while Apple is a loyal adopter of FCBGA technology, having used it in its processors from an early stage.

Data indicates that the global FCBGA packaging technology market will continue to grow rapidly in the coming years, with the market size expected to exceed USD 20 billion by 2026.

In face of such a highly potential opportunities, an increasingly more companies are channeling more efforts in developing FCBGA packaging technology, continuously facilitating its innovation and upgrade, and Chinese companies are also a part of this competition.

Currently, main companies engaging in FCBGA packaging substrates business in China include Fastprint, SCC, and FHEC (Forehope-elec), etc, which have disclosed their current progresses referring to FCBGA research and development.

Besides, Strongteam, a real estate company attempting to enter the semiconductor field, has set its sight on the FCBGA sector.

Fastprint disclosed that its low-layer FCBGA packaging substrates are currently in the small-batch delivery stage, with primary applications in the automotive and AI sectors.

SCC stated that it already has the capability of mass producing FCBGA packaging substrates with 16 layers and less, and the capability of sample manufacturing products with more than 16 layers.

The production line validation, sample delivery, and certification processes for various product levels have proceeded smoothly on track. Strongteam is actively transitioning into the semiconductor field and plans to invest in high-end FCBGA IC substrate enterprises.

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• [News] Samsung Gains Early Market Entry Advantage in the Panel-Level Packaging Sector Ahead of TSMC
• [News] Intel Foundry Unveils its Expanded Process Roadmap for AI Era at Direct Connect 2024 Event

(Photo credit: Samsung)

Intel and Japan’s National Institute of Advanced Industrial Science and Technology (AIST), under the Ministry of Economy, Trade and Industry, are reportedly planning to set up an R&D hub in Japan. As per a report from Tom’s Hardware, the new facility is expected to be built within the next 3-5 years, with a total investment projected to reach hundreds of millions of dollars.

According to a report from Nikkei on September 3rd, this facility is said to be putting more focus on developing advanced semiconductor manufacturing equipment and materials, as well as introducing Extreme Ultraviolet (EUV) lithography.

On the other hand, the hub will feature EUV lithography equipment, with AIST overseeing operations and Intel providing expertise in semiconductor manufacturing using EUV equipment.

The report from Nikkei indicates that Rapidus, expected to mass-produce 2nm chips by 2027, will introduce Japan’s first EUV lithography equipment in December 2024. The planned R&D hub, per Nikkei, will become the first research institution in Japan to incorporate such tool. The hub is also considering technical collaboration and talent exchange with U.S. research institutions.

Reportedly, EUV lithography equipment is essential for producing advanced chips below 5nm, but each unit costs over JPY 40 billion, making it difficult for materials and equipment manufacturers to purchase independently.

Therefore, semicondcutor companies may have to be rely on certain research institutions’ EUV equipment overseas to conduct research and product development, such as imec.

The global semiconductor foundry leader, TSMC, established a next-generation semiconductor R&D hub in Ibaraki Prefecture, Japan, in June 2022. Additionally, Samsung Electronics plans to set up a chip R&D center in Yokohama, Japan, by the end of 2024.

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• [News] Japan’s Chip Equipment Sales Hit Record High This Year, with 23.6% YoY Growth in July
• [News] Intel Reportedly Utilizes Sharp’s LCD Panel Factory for Semiconductor Backend Process

(Photo credit: Intel)

According to a report from Reuters, on September 3, Supermicro denied the short-selling report from Hindenburg Research released the previous week, characterizing it as containing false or inaccurate statements about the company.

Supermicro stated that the report included misleading statements about information they previously disclosed, and the company plans to address these claims at the appropriate time, without providing further details.

As of now, Hindenburg has yet responded to the request for comment on Super Micro’s statement.

On August 27, AI server giant Supermicro was accused of accounting violations, inadequate disclosure of related party transactions, and evading sanctions by selling products to Russia by Hindenburg Research.

The following day, Supermicro also announced a delay in submitting its 2024 fiscal year 10-K annual report, citing the need for more time to assess the design of internal controls and operational effectiveness.

Hindenburg Research stated that it conducted a three-month investigation, including interviews with its former senior employees, as well as a review of litigation records, international corporate and customs records.

On the other hand, Supermicro reiterated that the delay in filing its fourth-quarter or fiscal year report will not result in any significant changes.

Supermicro President Charles Liang further emphasized that these events will not affect the company’s products or its ability to provide IT solutions, as its productivity remains unaffected and continues to operate at a pace that meets customer demands.

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• [News] Taiwanese Supply Chain to Benefit from Supermicro’s Order Withdrawal, with Dell and HP as Potential Beneficiaries
• [News] Supermicro Faces Order Withdrawal Crisis, Potentially Benefiting Dell

(Photo credit: Supermicro)

According to TrendForce’s latest memory spot price trend report, regarding DRAM spot prices, since inventory levels are not excessively high, the selling pressure remains manageable. DDR4 products, though, have been suffering from the downward pressure more than DDR5. As for NAND flash, the spot market continues to sustain repercussions of sluggishness among consumer products. A number of brands are now pessimistic regarding how this wave of market enervation would persist until 1H25. Details are as follows:

DRAM Spot Price:

Due to an underwhelming peak season, spot sellers are under pressure to offload inventory, leading to a slight sell-off. However, since inventory levels are not excessively high, the selling pressure remains manageable. Meanwhile, Samsung has recently begun releasing reball DDR5 chips stripped from decommissioned modules at low prices. For instance, 2Gx8 (16Gb) chips are being sold for around US$3, contributing to the overall decline in spot prices. For DDR4 products, the plentiful supply of reball chips is exerting even more downward pressure compared with DDR5 products. Consequently, there is no sign of stabilization in spot prices. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) slightly decreased by 0.05% from US$1.973 last week to US$1.972 this week.

NAND Flash Spot Price:

The spot market continues to sustain repercussions of sluggishness among consumer products, where lackluster transactions are seen from client SSD, embedded products (eMMC & UFS), and memory cards. A number of brands are now pessimistic regarding how this wave of market enervation would persist until 1H25. Spot prices, compared to last week, have been continuously dropping at a small margin. Spot prices for 512Gb TLC wafers have dropped by 0.81% this week, arriving at US$3.185.