In recent developments, Samsung Foundry, a subsidiary of Samsung Electronics, has disclosed that it has initiated discussions with major chip clients, gearing up to provide services utilizing 1.4nm and 2nm processes.

It’s been said that Samsung being ahead in the production of 3nm GAA (gate-all-around) process, yet not as favored by major clients as TSMC. In response to the comment, Ki-tae Jeong, the CTO of Samsung Foundry, had share his insights at Semiconductor Expo 2023 in South Korea.

According to the Chosun Ilboon’s report, Jeong pointed out that in the semiconductor foundry industry, it typically takes approximately 3 years for major clients to make their final purchasing decisions. Samsung is actively engaging with prominent clients, and results may become evident in the coming years. Also, the company is currently discussing future processes such as 2nm and 1.4nm with major clients.

How are advanced semiconductor processes progressing?

Compared to mature processes, advanced processes are better suited for applications that demand high performance and low power consumption. With emerging technologies like AI and high-performance computing driving the industry, the demand for advanced processes continues to rise. Leading semiconductor companies are committed to developing new technologies, with chip advanced processes evolving from 5nm to 4nm and now down to 3nm, while looking ahead to the possibility of reaching 2nm and 1.4nm.

Current progress from major players:

Samsung
Samsung has already commenced mass production of its second-generation 3nm chips and aims to introduce the 2nm process by the end of 2025, with the 1.4nm process expected by the end of 2027.

TSMC
TSMC is planning to start production for N3P in the latter half of 2024, with N3X and the 2nm process set to enter mass production in 2025. TSMC will introduce Gate-all-around FETs (GAAFET) transistors for the first time at the 2nm process node, offering a 15% speed increase at the same power consumption and up to a 30% reduction in power consumption at the same speed, all while increasing chip density by more than 15%.

Intel
Intel is diligently pursuing its “Four Years, Five Nodes” plan. Presently, Intel 7 and Intel 4 are in mass production, and the Intel 3 process is expected to enter the readiness for production stage in the latter half of this year. Subsequently, Intel 20A and 18A processes are planned to enter the readiness for production stage in the first and second halves of 2024, respectively.

Moreover, industry experts believe that in the near term, Intel will focus on the Intel 3 process as its flagship offering in the advanced process semiconductor foundry sector to compete with TSMC, Samsung, and other players.

Under strong government support, South Korean automakers are making remarkable strides in the global automotive market. Hyundai Motor, the largest car manufacturer in South Korea, reported a significant surge in its third-quarter operating profit, doubling year-on-year, primarily fueled by the robust sales of high-profit SUVs and EVs.

According to reports from news outlets such as Yonhap News Agency, Hyundai Motor announced its financial results on October 26, 2023. In the third quarter of 2023, the company witnessed an 8.7% year-on-year increase in revenue, reaching 41 trillion Korean won. Furthermore, the operating profit soared to 3.8 trillion Korean won (approximately 2.8 billion USD), marking a remarkable 146.3% increase compared to the same period last year. These results exceeded market expectations of 3.62 trillion Korean won and set a historic high for the same period.

In the midst of a semiconductor industry downturn, long-standing economic leader Samsung Electronics has faced operational setbacks. In contrast, Hyundai Motor has thrived as South Korean automakers dominate the global automotive market, securing its position as South Korea’s most profitable company for three consecutive quarters and causing a shift in rankings.

In terms of sales volume, Hyundai Motor sold 1.05 million vehicles globally in the third quarter, marking a 2% year-on-year growth. Notably, the company’s focus on expanding its EV product lineup, including the introduction of the IONIQ, resulted in a significant 33.3% increase in global sales of eco-friendly vehicles, reaching 169,000 units.

The luxury brand under Hyundai Motor, Genesis, achieved a 5.1% share of total sales in the third quarter, an increase from 4.9% in the same period last year. SUVs, known for their profitability, accounted for 54.7% of total sales in the third quarter (excluding Genesis), up from 50.6% in the previous year. When including Genesis SUV models, this figure rises to 57.8%.

Amid growing tensions in the Middle East and globally sustained high-interest rates, notable figures like Elon Musk of Tesla and giants like General Motors have warned of potential weak consumer demand for EVs in 2024. Nevertheless, Hyundai Motor’s Vice President, Seo Gang-hyun, has affirmed that the company’s $5 billion investment plan to establish a factory in Georgia is proceeding as planned and is set to commence production in the first half of 2024, six months ahead of the initial schedule.

Read more

• [News] Ford Shifts EV Investment Focus Amidst Fierce Price Competition
• [News] Volkswagen Group Reports Strong 45% Growth in EV Sales for the First Three Quarters of 2023

(Image credit: Hyundai’s Facebook)

ASE Holdings conducted an earning conference on October 26th to unveil its Q3 financial results and offer insights into future business prospects. All eyes are on ASE’s progress in CoWoS advanced packaging. Joseph Tung, the Chief Financial Officer (CFO) of ASE, expressed confidence in AI and ongoing investments in advanced packaging, expecting a twofold increase in revenue share for advanced packaging in the coming year.

The market’s attention is keenly focused on wafer bank (a storage system used in semiconductor manufacturing to keep semiconductor wafers on hand for production, helping to streamline the manufacturing process) levels and inventory management. Tung mentioned that wafer bank levels are consistently declining and will further reduce Q4. With consumer electronics and computer clients gearing up to launch new products, inventory levels are expected to be maintained at a certain level. Overall, inventory reduction is nearing completion.

Tung emphasized that the real challenge lies not in inventory reduction but in the timing of the recovery in consumer demands and the impact of inflation. ASE remains cautious in its outlook for the upcoming year.

As for AI-related developments, Tung is optimistic about the expansion of CoWoS advanced packaging capacity through TSMC. ASE is also set to boost its production capacity for advanced packaging to cater to urgent customer demands. Next year, it is expected that revenue in advanced packaging will double. Tung emphasized that the AI era has already arrived and expects AI to extend to more terminal devices over the next few years. ASE has also invested in the development of Co-Packaged Optics (CPO) technology, ready to meet customer demands when the market is prepared.

To seize opportunities in advanced packaging, ASE previously introduced an Integrated Design Ecosystem (IDE) to optimize collaborative design tools through a platform, systematically enhancing advanced packaging architecture. This initiative has the potential to reduce design cycles by approximately 50%.

Tung pointed out that there are signs of a recovery in PC-related chip testing and packaging, and this year’s performance in automotive chip testing and packaging is expected to outperform other segments.

Looking ahead to future market conditions, Tung believes that the global semiconductor industry’s environment in the coming year will be more favorable than the current year.

(Image: ASE)

In the wake of ongoing labor strikes affecting the U.S. automotive industry, major players are recalibrating their investment plans. Ford announced today that it will temporarily delay its $12 billion investment in electric vehicles, including the construction of its second battery factory in partnership with SK On.

Ford’s Chief Financial Officer, John Lawler, emphasized during the earnings conference that the company is not retreating from the electric vehicle sector. However, he and CEO Jim Farley acknowledge that as electric vehicle sales increase, consumers’ price elasticity decreases. Most consumers are reluctant to pay higher prices for electric vehicles, resulting in pricing pressures that compress profit margins and hinder the growth of Ford’s electric vehicle business.

Ford’s financial reports for the third quarter of 2023 revealed revenue of $1.8 billion in its electric vehicle division, with total sales of 48,000 pure electric vehicles, marking the best sales performance in over a year and a half. However, the company also reported record losses, highlighting the challenges of scaling production without achieving profitability.

In response to these challenges, Ford is shifting its electric vehicle strategy away from feature-centric development to prioritize cost efficiency. “Tesla actually gave us a huge gift with the laser focus on cost and scaling the Model Y,” said Ford CEO Jim Farley. With Tesla setting an industry standard, Ford’s forthcoming second and third-generation electric vehicles will build upon this foundation.

Under this cost-driven approach, Ford is reviewing its electric vehicle investment portfolio to better align with market demand. This includes scaling back production lines for certain models, suspending the joint battery factory project with SK On in Kentucky, and adjusting other electric vehicle-related investments totaling up to $12 billion.

(Image credit: Ford’s Facebook)

GlobalWafers has achieved a milestone by successfully advancing silicon carbide (SiC) crystal growth to 8-inch wafers, aligning with major international players in the industry. The company foresees the commencement of small-scale shipments of 8-inch SiC products in Q4 2024, with substantial growth expected in 2025, surpassing the proportion of 6-inch wafers by 2026.

Accourding to CTEE, Doris Hsu, Chairwoman of GlobalWafers, shared that the yield for 8-inch SiC crystal growth has been excellent, with ample room for further expansion, currently exceeding 50%.

The company emphasizes its readiness with 8-inch SiC crystal growth, cutting, grinding, and polishing capabilities, with sample deliveries set for the first half of next year.

Hsu highlighted customers’ eagerness for GlobalWafers to expedite the transition from 6-inch to 8-inch SiC production, aiming for an “8-inch dominant, 6-inch secondary” approach. The increasing demand for 8-inch SiC is primarily driven by automotive customers.

In terms of technology, SiC is moving from 6-inch to 8-inch wafers due to increased demand. TrendForce’s insights indicated, “Currently, the silicon carbide industry is mostly using 6-inch wafers, accounting for nearly 80% of the market share, while 8-inch wafers make up less than 1%. Expanding the wafer size to 8 inches is considered crucial for further reducing the cost of silicon carbide devices.”

From a cost perspective, 8-inch wafers indeed offer substantial advantages, but the challenge of yield has consistently plagued SiC. TrendForce’s earlier research suggests that, when it reaches maturity, an 8-inch wafer’s selling price is approximately 1.5 times that of a 6-inch wafer, and the number of die an 8-inch wafer can produce is about 1.8 times that of a 6-inch SiC wafer, significantly improving wafer utilization.

While GlobalWafers currently manufactures SiC substrates in Taiwan, the future SiC epitaxy will take place in the United States, with plans to expand with two additional substrate and two additional epitaxy facilities.

The production of SiC crystals involves high-temperature and closed-environment growth, which demands meticulous furnace design and crucible material selection, adding complexity to equipment and operations.

GlobalWafers has designed and developed specialized SiC crystal growth furnaces, enhancing material quality control and lowering crystal growth costs. SiC’s high hardness and brittleness make wafer processing challenging, but GlobalWafers employs higher process accuracy and more efficient wafer handling methods to achieve ultra-thin SiC wafer processing.

(Image: GlobalWafers)