Samsung, the Korean tech giant, has unveiled SAINT technology to counter TSMC’s advanced CoWoS packaging, aiming to benefit from the surging AI market. Market reports reveal that Samsung is strategically procuring a substantial amount of 2.5D packaging equipment, indicating a keen awareness of the soaring demand from AI chip companies like NVIDIA, reported by Korean media The Elec.

Samsung has acquired 16 sets of packaging equipment from the Japanese company Shinkawa. Currently, 7 sets have been received, with the possibility of additional orders based on future requirements. Samsung’s objective is to demonstrate its prowess in packaging and HBM technologies, seeking recognition and partnership with NVIDIA. As the limitations in NVIDIA’s current supply chain, especially due to insufficient CoWoS advanced packaging capacity in TSMC, Samsung emerges as a promising alternative for diverse supply chain.

On the other hand, NVIDIA’s ambitious goal of achieving USD 300 billion in AI sector revenue by 2027 requires a reliable supply chain, as per reported by TechNews. To this end, Samsung is poised to supply its next-gen GPU, Blackwell, featuring HBM3 and 2.5D packaging. This move aligns with NVIDIA’s strategy to diversify its supply chain away from existing providers like TSMC.

For Samsung, this collaboration presents a significant opportunity to enter the thriving AI market. Success in this venture could not only bolster the financial performance of Samsung’s memory and advanced packaging divisions but also open doors to orders from players like AMD and Tesla. However, the key lies in how effectively Samsung meets the formidable market demand, particularly in semiconductor production, advanced packaging, and memory technology.

(Image: Samsung)

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• [News] TSMC’s CoWoS Demand Surges from NVIDIA, Apple, AMD, Broadcom, Marvell, Monthly Capacity Up 120% in 2024

In the past few years, the rapid growth of the Mini LED backlight market has been closely tied to the support from consumer electronics giant Apple. Apple pioneered the integration of Mini LED backlight technology into tablet products, sparking increased demand for Mini LED technology in the consumer market. However, it seems that Apple is now steering away from the Mini LED backlight technology path.

Recently, well-known Apple supply chain analyst Ming-Chi Kuo released a 2024 forecast report for the new iPad models. The upcoming iPad Pro is expected to replace the current Mini LED backlight panel with an OLED panel.

Additionally, the 12.9-inch version of the iPad Air model will feature an Oxide backplane, similar to the one used in Mini LED backlight panels, to enhance display performance.

From Apple’s strategic shift in abandoning Mini LED in favor of OLED for iPad Pro, it appears that the primary consideration is cost.

While the manufacturing process for Mini LED has matured in recent years, resulting in continuous cost reductions, the current cost of Mini LED remains higher compared to the more established and mature OLED technology.

In contrast, OLED’s cost performance is noteworthy. According to observations from TrendForce, OLED manufacturers have committed to investing in 8.5th generation OLED for laptops and tablets this year, indicating a potential further decrease in OLED costs.

Furthermore, OLED offers features such as slim design, low power consumption, quick response, high clarity, and flexibility, similar to Mini LED backlight technology.

This not only enhances the display performance of iPad Pro but also optimizes aspects like thickness, weight, and energy consumption, aligning with the characteristics of portable tablet products.

Apple’s Planned Shift from Mini LED to OLED

Looking back at the development of Mini LED in recent years, Apple’s utilization of this technology has not been extensive, and it has typically been reserved for Apple’s most high-end products, such as the 2019 Pro Display XDR. Subsequent releases, including the iPad Pro and MacBook Pro, also adopted the same technology.

While Apple successfully integrated Mini LED backlight technology into the highest-end versions of displays, tablets, and laptops, some releases and production of Apple’s Mini LED backlight products were delayed during this period. This includes rumored products like the iMac Pro featuring Mini LED backlight screens and the second generation of the 27-inch display Apple Studio Display.

While Apple has been incorporating Mini LED backlight technology into high-end products, the company is also exploring the expansion of OLED technology beyond iPhones to include more devices.

Last year, it was reported that BOE is constructing an 8.6th generation OLED display production line to fulfill orders for Apple’s future iPad and MacBook models featuring OLED screens, expected to be operational by the end of 2024.

As for the upcoming iPad Pro tablet set to be launched as early as next year, there are indications that Samsung and LG will provide dual-layer OLED panels. This promises a doubling of screen brightness, an extended lifespan, and lower power consumption compared to Mini LED backlight technology.

Mini LED Backlight Demand Continues to Grow

TrendForce analysis indicates that, influenced by the Apple brand effect, Mini LED backlight has officially entered the application markets of laptops and tablets. However, due to high costs, Apple has notably slowed down the pace of introducing Mini LED backlight to laptops and tablets.

While the change in Apple’s display technology roadmap has had a certain impact on the Mini LED backlight market, especially in tablets and laptops where Apple holds a larger share, TrendForce’s report points out that the applications of Mini LED in TVs, displays, and automotive displays are still on a growth path.

It is worth noting that the main applications in TVs and displays continue to show a growth trend, while future potential applications like automotive displays provide more possibilities for the growth of the Mini LED backlight market.

With ongoing optimization of technology and costs, the overall Mini LED backlight market is expected to maintain a growth trend.

According to data from TrendForce’s report “2024 New Mini LED BLU Display Trend Analysis“, after a brief decline in shipments in 2023, applications with Mini LED backlight technology are expected to return to growth in 2024, with an estimated shipment volume of 13.79 million units.

With the trend of Mini LED terminal products becoming more affordable, the shipment volume is expected to continue growing, reaching an estimated 31.45 million units by 2027, with a CAGR of approximately 23.9% from 2023 to 2027.

(Photo credit: Apple)

As reported earlier, the global provider of outsourced semiconductor packaging and test services, Amkor, has been set to establish its presence in Arizona, USA, providing advanced packaging services for Apple chips manufactured by TSMC.

According to reports from South Korean media, the alliance formed among Apple, TSMC, and Amkor may pose a significant challenge to the South Korean semiconductor giant, Samsung Electronics, potentially creating competition for contracts and drawing close attention from the industry.

Amkor released a statement on November 30, announcing the establishment of the new facility in Peoria, northwest of Phoenix, Arizona. The construction is expected to commence in the second half of 2024, focusing primarily on advanced packaging requirements for high-end chips related to IoT, automotive electronics, 5G, artificial intelligence (AI), and high-performance computing (HPC). The facility has already secured orders from major players, with Apple being its first and largest customer.

Coincidentally, TSMC is also in the process of constructing an advanced process semiconductor wafer facility in Phoenix. 

TrendForce’s research has indicated that the current maximum capacity plan for TSMC’s Arizona plant is around 50,000, with 20-30,000 allocated for 4nm and 3nm each. It is anticipated that the expansion to this scale will only occur after 2027. This capacity is expected to cater to a limited number of domestic customers in the United States who require fully American-made semiconductor products.

Business Korea’s report also suggests that the alliance formed among Apple, TSMC, and Amkor may impact Samsung. Samsung’s second wafer facility in the U.S., located in Taylor City, Texas, is anticipated to start production in the second half of 2024, setting the stage for potential chip procurement battles with TSMC.

Speculations have arisen about Samsung possibly establishing a testing and packaging facility in Taylor City, following the strategy of strengthening vertical integration to enhance competitiveness and gain an advantage in chip procurement.

In November of this year, Samsung unveiled a new strategy called “GDP,” focusing on Gate-All-Around (GAA) transistor technology, DRAM, and 3.5D advanced packaging. The company has pledged to achieve a goal where more than half of its wafer foundry revenue comes from AI chip orders within five years.

(Photo credit: TSMC)

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• [News] Apple Expands Amkor Partnership at Arizona Fab with Amkor’s $2B Investment in Advanced Packaging

SiC industry giant Wolfspeed issued a press release on December 4th, formally selling its radio frequency business (Wolfspeed RF).

Back to August 22nd of this year, Wolfspeed had announced the sale of Wolfspeed RF to the U.S. semiconductor company MACOM Technology Solutions Holdings, Inc.

Under the transaction terms, Wolfspeed received approximately USD 75 million in cash, subject to a customary purchase price adjustment, and 711,528 shares of MACOM common stock, which shares had a market value of approximately USD 60.8 million based on the closing price for MACOM’s common stock on December 1st, 2023 as reported on the Nasdaq Global Select Market.

MACOM specializes in designing and producing high-performance semiconductor products. Their product range spans radio frequency, microwave, analog and mixed-signal, and optical semiconductor technologies, catering to industries such as telecommunications, industrial applications, defense, and data centers. Headquartered in Lowell, Massachusetts, USA, MACOM’s business footprint extends across the United States, Europe, Asia, and beyond. With the successful completion of this business acquisition, the company’s impact in the radio frequency domain is poised to experience notable reinforcement.

President of CEO of Wolfspeed Gregg Lowe said, “The completed sale of Wolfspeed RF is the final step in our transformation, and we’re happy to say Wolfspeed is now the only pure-play silicon carbide semiconductor manufacturer in the industry. As demand continues to accelerate across the automotive, industrial and renewable energy markets, we can now focus on innovation and capacity for our materials and power device businesses.”

TrendForce reveals a future landscape for the SiC power device market, projected to reach USD 5.33 billion by 2026, driven by robust demand in downstream applications, particularly in electric vehicles and renewable energy. Despite this positive outlook, the SiC industry faces constraints due to supply issues in SiC substrates.

Wolfspeed’s recent decision to divest its radio frequency business further underscores the company’s commitment to maintaining a leading role in the SiC substrate market, where it currently stands as the sole producer capable of mass-producing 8-inch SiC substrates.

Current situation of the SiC substrate industry         

Considering the SiC substrate industry dominated by few players, Wolfspeed stands out as a notable example. More and more companies are opting to enhance their production capacity for high-quality SiC substrates used in automotive main inverters.

The SiC substrate industry is actively addressing challenges of low demands and high cost, making various companies to expand from 6-inch to 8-inch SiC substrates. While Wolfspeed is ahead in the production of 8-inch SiC substrates, other industry leaders are also making notable progress:

• Rohm has established an 8-inch SiC wafer fab in Japan, scheduled to commence 8-inch substrate production next year.
• Coherent’s SiC subsidiary secured a substantial USD 1 billion investment from Japan’s Denso and Mitsubishi Electric to produce 6/8-inch substrates.
• STMicroelectronics and Sanan Optoelectronics are collaborating on an 8-inch SiC wafer fab in Chongqing, with gradual production expected to start from 2025. Concurrently, Sanan will establish an 8-inch SiC substrate fab.

Moreover, several Chinese companies, including SEMISiC, Jingsheng, Summit Crystal, Synlight, KY Semiconductor, and IV-SemiteC, are actively advancing the development of 8-inch SiC substrates, contributing to the overall progress in the SiC substrate industry.

Wolfspeed’s Optimism Amid Industry Upgrades

In the face of industry upgrades and competitive pressures, Wolfspeed’s leadership remains optimistic. Looking into its result in second quarter of fiscal 2024, Wolfspeed targets revenue from continuing operations in a range of USD 192 million to USD 222 million. GAAP net loss from continuing operations is targeted at USD 131 million to USD 153 million. Non-GAAP net loss from continuing operations is targeted to be in a range of USD 71 million to USD 88 million. Based on the result, Wolfspeed aim to meet 20% utilization goal at the Mohawk Valley Fab in next quarter. The company predicts the revenue of the fab will rise from USD 4 million to USD 10~15 million. The third quarter revenue will grow significantly as well.

Being the only front runner in the global market solely dedicated to SiC business, Wolfspeed can channel all its focus and resources into SiC materials and power device operations. As Wolfspeed enhances the capacity of its fabs, there is potential for a further increase in its market share for SiC materials and power devices. In response to this evolving landscape, other companies are likely to expedite the research and production of 8-inch SiC substrates, aiming to enhance their market presence and actively contribute to the overall advancement of the SiC industry chain.
(Image: Wolfspeed, MACOM)

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Compared to last week, there is no notable change in DRAM spot price. It is relatively stable in this week. On NAND Flash, there was a 20%+ growth in NAND Flash wafer contract prices last month, making buyers stock and sellers negotiate the price. It leads a surge in the NAND flash wafer spot price in this week.

DRAM Spot Market

The spot market has not changed noticeably from the previous week, and prices are starting to weaken as more used DDR4 chips are released into the market. Kingston has yet to adjust its module prices, so other module houses are hesitant to raise their prices as well. On the whole, the spot market remains fairly quiet in terms of trading activities, and the general price trend there is relatively flat. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) rose by 0.99% from US$1.712 last week to US$1.729 this week.

NAND Flash Spot Market

Overall retail sales of NAND Flash have yet to surpass performance of past years, though the growth of more than 20% in contract prices for Flash wafers during November that stimulated aggressive stocking activities among buyers had led to a more adamant approach in sellers’ negotiations, and had prompted 512Gb to surpass US$3 on a continual basis. 512Gb TLC wafer spots have risen by 5.35% this week, arriving at US$3.015.