On November 4th, the “Annual Production of 250k 6-inch and 50k 8-inch SiC Substrate Project” was officially initiated by China Jingsheng Mechanical & Electrical Co., Ltd. (JSG). It is driven by the objective of advancing crucial core technologies in semiconductor material development, ultimately leading to the establishment of a domestically produced alternative for China.

The total investment for this agreement reached an impressive 2.1 billion CNY. During the launch ceremony, Dr. Jianwei Cao, Chairman of JSG, underscored the pivotal role of this project in the company’s growth strategy.

JSG, founded in 2006 and headquartered in Zhejiang, China, made its debut on the Shenzhen Stock Exchange in 2012. The company specializes in developing essential semiconductor materials, including silicon, sapphire, and SiC. It provides equipment and services to the semiconductor and photovoltaic industries.

Since 2017, JSG has been deeply engaged in SiC ingot growth equipment and process development, achieving the successful production of 6-inch and 8-inch SiC ingots and substrates. The company is among the select few capable of supplying 8-inch substrates in China. They have successfully established a pilot line for the growth, slicing, and polishing of 6-8-inch SiC ingots. The 6-inch substrates have received validation from several downstream companies and are rapidly progressing, while the 8-inch substrates are in the small-scale trial production phase.SiC, as an iconic material for third-generation semiconductors, is renowned for its outstanding physical properties, rendering it suitable for various applications such as new energy vehicles, photovoltaic energy storage, data centers, 5G communication, and ultra-high-voltage (UHV). In recent years, there has been a sustained surge in demand for SiC due to its remarkable properties. However, the widespread commercialization of SiC has been hampered by cost-related challenges.

A cost analysis of the SiC industry reveals that substrate expenses account for approximately 40% of the overall costs, making it a pivotal aspect of cost reduction. The interest of leading companies in large-sized substrates is attributed to their higher utilization rates, contributing significantly to cost reduction.

GlobalWafers, the world’s third-largest silicon wafer manufacturer, plans to embark on large-scale production of advanced SiC substrates in 2025 to meet the surging demand for power semiconductors in the automotive sector. Doris Hsu, Chairman and CEO of GlobalWafers, recently announced that the company is set to commence qualification and test production of 8-inch SiC substrates in the upcoming year, with large-scale production slated for 2025.

On the other hand, SICC, a company also engaged in SiC substrates development, has expedited its capacity expansion in Shanghai Lin-gang Special Area, augmenting the production capacity for conductive substrates since 2022. They have been delivering products since May this year and anticipate a further rise in production capacity during the fourth quarter of 2023. The company is poised to achieve mass production ahead of schedule for the first-phase 300,000-piece capacity and has initiated plans for the second-phase 960,000-piece capacity for 6-inch SiC ingot.

While 6-inch conductive SiC substrate products dominate the market, 8-inch substrates are yet to become ubiquitous. However, SICC announced the development of high-quality 8-inch substrates in 2022. The company is now equipped for mass production of 8-inch products. Notably, during the 2023 Semicon, Dr. Chao Gao, CTO of SICC, disclosed the successful creation of low-defect-density 8-inch ingots using a liquid-phase method.

(Image: SICC)

In a subdued environment for consumer electronic applications in the storage market, High Bandwidth Memory (HBM) technology is emerging as a new driving force, gaining significant attention from major players. Recent reports reveal that both Samsung and Micron are gearing up for substantial HBM production expansion.

Major Manufacturers Actively Investing in HBM

Recent reports indicate that Samsung has acquired certain buildings and equipment within the Cheonan facility of Samsung Display in South Korea to expand its HBM production capacity.

It is reported that Samsung plans to establish a new packaging line at the Cheonan facility for large-scale HBM production. The company has already spent 10.5 billion Korean won on the acquisition of the mentioned buildings and equipment, with an additional investment expected to range between 700 billion and 1 trillion Korean won.

Earlier, it was disclosed by Mr. Hwang Sang-jun, the Vice President of Samsung Electronics and Head of the DRAM Product and Technology Team, that Samsung has developed HBM3E with a speed of 9.8Gbps and plans to commence providing samples to customers.

Concurrently, Samsung is in the process of developing HBM4 with the objective of making it available by 2025. It is reported that Samsung Electronics is actively working on various technologies for HBM4, including non-conductive adhesive film (NCF) assembly techniques optimized for high-temperature thermal characteristics and hybrid bonding (HCB).

On November 6th, Micron Technology opened a new facility in Taichung. Micron has stated that this new facility will integrate advanced testing and packaging functions and will be dedicated to the mass production of HBM3E, along with other products. This expansion aims to meet the increasing demand across various applications such as artificial intelligence, data centers, edge computing, and cloud services.

Previously, Micron’s CEO, Sanjay Mehrotra, revealed that the company plans to commence substantial shipments of HBM3E in early 2024. Micron’s HBM3E technology is currently undergoing certification by NVIDIA. The initial HBM3E offerings will feature an 8-Hi stack design with a capacity of 24GB and a bandwidth exceeding 1.2TB/s.

Furthermore, Micron intends to introduce larger-capacity 36GB 12-Hi stacks HBM3E in 2024. In an earlier statement, Micron had anticipated that the new HBM technology would contribute “hundreds of millions” of dollars in revenue by 2024.

Shift Toward HBM3 Expected in 2024

According to TrendForce, the current mainstream technology in the HBM market is HBM2e. This specification is utilized by prominent players like NVIDIA with their A100 and A800, AMD with the MI200 series, and various custom system-on-chip designs by CSPs.

Simultaneously, in response to the evolving demand for AI accelerator chips, many manufacturers are planning to introduce new products based on HBM3e technology in 2024. It is anticipated that both HBM3 and HBM3e will become the dominant technologies in the market next year, catering to the requirements of AI accelerator chips.

The global smartphone market has seen a continuous decline for nine consecutive quarters, with only the foldable phone category remaining resilient and maintaining growth. Android smartphone manufacturers seem to view this category as a lifeline, having released a total of 13 new foldable phones in the past three months, setting a record for the number of new foldable phones introduced in half a year.

The intensified release of foldable phone models not only reflects the sense of urgency among smartphone manufacturers but also signifies a shift towards foldable technology in the mobile industry.

Currently, the foldable phone market is not as well-established as the traditional flat-screen market, presenting opportunities and variables. All Android manufacturers aim to leverage foldable phones to enhance their market positioning, achieve high-end differentiation, and engage in distinctive competition with Apple.

In fact, during the third quarter, there were subtle changes in the landscape of the foldable phone market in China according to IJIWEI’s report. Huawei, which once dominated the foldable phone market, has seen its market share decline. OPPO and Honor have managed to surpass Huawei in terms of sales volume in the flip-fold and single-product categories.

Next year, Huawei and Samsung plan to introduce more competitively priced foldable phones, and other Android manufacturers are expected to follow suit, driving accelerated expansion in the foldable phone market.

13 New Foldable Phones Launched in 3 Months

In the latter half of this year, smartphone manufacturers including Honor, OPPO, Xiaomi, Samsung, Huawei and Transsion, have been on a roll, releasing a remarkable 13 new foldable phones within just three months. This surge in foldable phone launches has almost doubled the number of foldable devices introduced in the first half of the year.

Each smartphone manufacturer has focused on different aspects of foldable phones. Honor has been particularly aggressive in the foldable phone market, introducing three new models in just four months, constantly pushing the boundaries of thinness. In July, Honor managed to reduce the thickness of foldable phones to the millimeter era with a body thickness of 9.9mm.

In September, the Honor V Purse, an outward folding phone, had a body thickness of 8.6mm in its folded state and weighed only 214g, once again setting a new record for slim foldable phones in the market. In October, the Honor Magic Vs2 weighed 229g, refreshing the record for slim large-sized inward folding phones.

On the other hand, OPPO and Xiaomi have emphasized the imaging performance of their foldable phones. In addition, Samsung, Huawei, Transsion, OnePlus, and other manufacturers have each introduced innovative models like the Galaxy Z Flip 5/Fold 5, Samsung W24/W24 Flip, OnePlus Open, Huawei Mate X5, and PHANTOM V Flip 5G, incorporating cutting-edge technology into foldable phones and significantly enhancing the foldable phone experience. This surge in foldable phone innovation has become one of the standout features in this year’s smartphone market.

Reasons for the Proliferation of Foldable Phones

Recent intense launches of new foldable phones by smartphone manufacturers reflect their strong sense of urgency in the Android market.

Global smartphone markets have been persistently sluggish, declining for nine consecutive quarters due to factors like inflation, market saturation, and longer upgrade cycles. Traditional flat smartphones are no longer able to drive sustained market growth, and the smartphone market is in need of new growth engines.

Foldable phones, with their differentiated form and innovative experiences, have the potential to stimulate consumer upgrades, and smartphone manufacturers have high hopes for them, leading to the frequent release of new foldable phone models.

Currently, foldable phones are considered high-end products, and the intense launch of new foldable phone models by Android smartphone manufacturers is aimed at achieving brand premiumization and establishing differentiation from Apple.

In an effort to break through the high-end market stronghold that Apple has established, Android smartphone manufacturers, led by Samsung, have not only upgraded their high-end flat smartphones but have also been actively promoting foldable phone innovations, different from the iPhone 15 series. They aim to stimulate consumer upgrades and attract more high-end users who value large-screen experiences.

Price Key to Boosting Foldable Smartphone Penetration

In recent months, Android smartphone manufacturers have been consistently releasing new foldable phone models, driving up foldable phone sales and contributing to increased market penetration in the high-end smartphone segment during the latter half of the year.

Supply chain sources have also revealed that Samsung is planning to bring foldable phones to the mid-range market next year, further reducing price barriers and making foldable phones more accessible to a broader range of consumers.

This year, the lowest price for foldable phones has already dropped to 3,659 yuan (RMB), setting a new record. In the upcoming year, more manufacturers will introduce higher-value foldable phone products, thus accelerating the broader adoption of foldable phones.

TrendForce believes that the driving force behind the foldable market’s expansion is the reduced costs and the expansion strategies of Chinese brands.

Looking at TrendForce’s estimated numbers , by 2023, shipments of foldable smartphones could skyrocket to an impressive 18.3 million units, marking a 43% YoY surge. However, this only captures a slim 1.6% of the year’s total smartphone market. Fast forward to 2024, a 38% growth is anticipated, translating to a hefty 25.2 million units and nudging the market share up to 2.2%.

Looking at the medium to long term, TrendForce believes the expansion of the foldable smartphone market is inevitable. By 2027, shipments could soar to a whopping 70 million units, seizing around 5% of the global smartphone market.

At the same time, foldable phone manufacturers are exploring new product forms and driving advancements in end-user applications. While there are certain limitations in terms of size for dual-foldable screen phones, many companies have already started working on triple-foldable screen products.

Recent reports from industry insiders suggest that Huawei’s development of a triple-foldable screen phone is progressing smoothly and may be ready for launch before March next year. It’s expected that two triple-foldable screen phones will be introduced in 2024.

On the other hand, Apple’s strategy for foldable devices differs from many Android phone manufacturers, as they are more focused on mature products and not in a hurry to release foldable phones.

According to TrendForce’s research, to date, Apple’s foray into foldables has been tepid due to Apple’s unwavering obsession with user experience.

Persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back. Still, achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. The possibility for Apple to leapfrog right into medium-sized foldable products – like laptops or tablets – still remains.

(Photo credit: Phantom)

Following China’s Big Fund’s substantial $14.56 billion RMB investment in Changxin Xinqiao Storage Technology, a memory chip manufacturer, at the end of October, there are now reports of an additional $39 billion RMB injection.

China is actively building a domestic semiconductor supply chain, and according to Nikkei Asia, Changxin Xinqiao is set to utilize this funding to expedite the construction of its facility in Hefei, Anhui province, with the aim of achieving mass production within a span of three years.

Hefei is also the location of a production facility for ChangXin Memory Technologies (CXMT), a major semiconductor manufacturer specializing in DRAM production. Changxin Xinqiao shares some shareholders and its general manager with CXMT, according to Tianyancha.

Chinese media points out that Changxin Xinqiao has ambitious plans to produce DRAM chips in Hefei, destined for use in computers and a wide array of electronic devices. At present, Changxin Xinqiao has initiated the tendering process for new facility equipment and is poised to accelerate procurement and related procedures using the recently acquired funding.

With support from the Hefei City government, Changxin Xinqiao initiated the DRAM factory construction project in 2019 and laid out a policy to make use of domestically manufactured semiconductor production equipment.

(Image: CXMT)

Explore more:

• [News] With two October Investments, Big Fund Phase II Commits Nearly 19 Billion RMB
• Memory Spot Price Updates: DRAM and NAND Flash Prices Soaring at Relatively High Levels

On November 6th, leading IC design company, MediaTek, introduced the Dimensity 9300, its latest flagship mobile System-on-Chip (SoC) featuring an innovative All Big Core design.

It incorporates groundbreaking technology to redefine flagship experiences in areas such as on-device AI, gaming, and imaging. The first smartphones to adopt MediaTek’s Dimensity 9300 chip are expected to hit the market by the end of 2023.

MediaTek’s next generation APU 790 AI processor is integrated into the Dimensity 9300 and designed to significantly improve generative AI performance and energy efficiency for faster and more secure edge computing. The APU 790 doubles the integer and floating-point operations performance, while reducing power consumption by 45%.

The APU 790 hardware includes a generative AI engine, enabling faster and more secure edge AI computations. It’s capable of accelerating operations on Transformer models, achieving processing speeds eight times faster than the previous generation and generating images within one second.

Moreover, in conjunction with large-scale language models, MediaTek has developed mixed-precision INT4 quantization technology, which when combined with the company’s NeuroPilot memory hardware compression, can more efficiently utilize memory bandwidth and significantly reduce memory requirements for large AI models.

The APU 790 provides support for NeuroPilot Fusion, which can continuously perform LoRA low-rank adaptation, and is capable of supporting large language models with 1B, 7B, and 13B parameters, with scalability up to 33B.

Additionally, MediaTek’s AI development platform, NeuroPilot, has built a rich AI ecosystem, supporting mainstream AI language models such as Meta LIama 2, Baidu ERNIE Bot, and Baichuan’s large language model, facilitating rapid and efficient deployment of multi-modal generative AI applications on edge devices, offering innovative user experiences in text, images, music, and more.

In terms of performance, MediaTek emphasizes that the Dimensity 9300 offers exceptional performance in terms of intelligence, efficiency, and low power consumption, all achieved through groundbreaking advanced technology. It sets the stage for a new flagship experience in generative AI, gaming, and imaging.

“The Dimensity 9300 is MediaTek’s most powerful flagship chip yet, bringing a huge boost in raw computing power to flagship smartphones with our groundbreaking All Big Core design,” said Joe Chen, President at MediaTek.

“This unique architecture, combined with our upgraded on-chip AI Processing Unit, will usher in a new era of generative AI applications as developers push the limits with edge AI and hybrid AI computing capabilities.”

MediaTek’s Over 40% Market Share in China Underscores the Vital Importance of the Chinese Market

Furthermore, MediaTek strategically chose China as the launch location for its latest flagship mobile chip. This decision reflects the long-standing partnerships with various Chinese smartphone brands and the fact that the Chinese market has consistently been a significant source of revenue for MediaTek.

For the third quarter of this year, mobile chips constituted 49% of the overall revenue, making a substantial contribution to the company’s earnings. Regarding geographical distribution, foreign securities firms have estimated that the Chinese market contributes to approximately 40% of MediaTek’s revenue, primarily driven by smartphone products.

Moreover, according to statements made by MediaTek’s Chairman Rick Tsai at the beginning of this year, following the introduction of the Dimensity 5G mobile chip series in 2019, MediaTek expanded its presence in the Chinese high-end smartphone chip market. Starting almost from scratch in 2021, it achieved a market share of 20% in 2022. The projection is that this trend will continue to rise this year.

In other words, the Chinese mobile chip market, particularly in the high-priced flagship mobile chip segment, remains a critical driving force for MediaTek. It presents a significant long-term competition challenge to Qualcomm, particularly as it enters the realm of generative AI business applications.

After Huawei’s breakthrough in 5G chipsets, enabling its return to the market with 5G smartphones, the sales of smartphones using Qualcomm’s 4G chipsets are bound to be affected, which, in turn, poses a challenge for Qualcomm. With the introduction of the 5G Generative AI mobile chipset Tianji 9300, the competition in the Chinese smartphone chipset market is expected to intensify.

(Photo credit: MediaTek)