Though has yet to disclose the actual progress on its 12-Hi HBM3e verification with AI chip giant NVIDIA, Samsung is rumored to lower its target for the maximum production capacity (CAPA) of HBM by the end of 2025, which echoes the speculation on delays of HBM3e mass production for key customers, according to Korean media outlet ZDNet.

It is worth noting that the struggling memory giant reportedly plans to lower the capacity target by over 10%, from the initial monthly goal of 200,000 units to 170,000 units by the end of next year, ZDNet suggests, as it now takes a relatively cautious approach to facility investment plans.

According to the report, as of the second quarter, in order to narrow the gap with competitors such as SK hynix, Samsung had planned to increase HBM production capacity to 140,000–150,000 units per month by the end of this year, and up to 200,000 units per month by the end of next year.

At the Q2 earnings call in late July, Samsung disclosed an ambitious roadmap for its HBM products. According to a previous report from Business Korea, Samsung expects the share of HBM3e chips within its HBMs to surpass the mid-10 percent range in the third quarter, and speedily grow to 60% by the fourth quarter. The company also projects its HBM sales to increase three to five times in the second half of 2024.

However, the scenario has changed a few months later. Citing a source familiar with the situation, the report by ZDNet notes that Samsung has decided to slow down the pace of facility investments due to the underperformance of its HBM business. Further discussions on investments will only proceed once its HBM3e supply for NVIDIA is confirmed, the source indicates.

According to the analysis by TrendForce, achieving stable yields for HBM3 and HBM3e 8-Hi products required at least two quarters of learning in previous generations. Based on this precedent, the learning curve for HBM3e 12-Hi is unlikely to shorten significantly, especially with the rapid market shift toward the 12-Hi version.

Furthermore, key products such as NVIDIA’s B200 and GB200, as well as AMD’s MI325 and MI350, will adopt HBM3e 12-Hi. The high cost of these systems will also demand strict stability, complicating mass production and adding another layer of uncertainty.

Ahead of its Q3 earnings call, Samsung already warned its profit would fall short of market expectations, while issuing an apology for the disappointing performance. Samsung’s operating profit for the third quarter is expected to reach 9.1 trillion won, which is below the expected 10 trillion won.

Another report by The Korea Times notes that the market expected SK hynix to see a substantial increase in operating profit driven by strong HBM demand, potentially outpacing Samsung’s semiconductor division.

To boost its competitiveness in the semiconductor industry, Samsung intends to assign research and development staff directly to its manufacturing facilities. This initiative seeks to enhance communication and collaboration with on-site production teams, according to a report by SmBom.

Read more

• [News] Lagging behind SK hynix in HBM, Samsung Plans Significant Year-end Cuts to Chip Executives
• [News] Samsung Foundry Faces Yield Struggles and Client Losses, External Push for Spinoff and U.S. Listing

(Photo credit: Samsung)

Samsung’s next-generation flagship phone, the Galaxy S25 series, is set to debut in three months. According to current market rumors, the lineup will still include the S25, S25+, and S25 Ultra models. In addition, Samsung is expected to release a “lite flagship” version, the Galaxy S25 FE. As reported by SamMobile, the S25 FE will be powered by MediaTek’s Dimensity chipset and is slated for release by the end of next year.

Prior to this report, there had been widespread speculation that MediaTek’s Dimensity 9400 would be used in the Galaxy S25 series launching early next year.

However, a recent update from SamMobile, citing @Jukanlosreve on platform X, revealed that the negotiations between Samsung and MediaTek, which initially aimed to include the Dimensity chip in the Galaxy S25, have shifted to placing the Dimensity chip in the S25 FE instead.

The latest information suggests that only the S25 FE will feature the MediaTek Dimensity chipset, while the rest of the S25 series will exclusively run on Qualcomm’s Snapdragon processors.

@Jukanlosreve did not specify the exact model of the chipset for the S25 FE, but SamMobile speculates that it will be the Dimensity 9400, MediaTek’s latest fourth-generation flagship mobile chipset, built on TSMC’s 3nm process, designed to compete with Qualcomm’s new Snapdragon 8 Elite.

(Photo credit: MediaTek)

China has taken steps to assert state ownership over its rare-earth materials necessary for semiconductor production by enacting a regulation that came into effect on October 1st. In response to China’s export restrictions, the U.S. Department of Defense agency DARPA (Defense Advanced Research Projects Agency) has asked Raytheon to develop new types of semiconductors that do not rely on materials controlled by China, according to Tom’s Hardware.

Wide-bandgap semiconductor materials such as gallium nitride (GaN) are used in the production of advanced power chips and radio frequency amplifiers, and China controls a significant portion of the global gallium supply. According to a report from Tom’s Hardware, China’s recent export restrictions on gallium pose potential risks to American national security. To counter this challenge, the U.S. DARPA has asked Raytheon to develop synthetic diamond and aluminum nitride (AIN) semiconductors.

According to Tom’s Hardware, while GaN is a leading material for high-power and high-frequency semiconductors with a bandgap of 3.4 eV, synthetic diamond has the potential to surpass GaN’s capabilities with its bandgap of around 5.5 eV. However, synthetic diamond is still an emerging semiconductor material, and there are many challenges to overcome for mass production. Aluminum nitride features an even wider bandgap of about 6.2 eV.

As per the report from Tom’s Hardware, Raytheon aims to develop diamond and aluminum nitride semiconductors for both current and next-generation radar and communication systems, including radio frequency switches, limiters, and amplifiers that can be integrated into high-speed weapon systems. However, Raytheon has not yet developed suitable semiconductors.

According to the press release from Raytheon, during phase one of the contract, the Raytheon Advanced Technology team will develop diamond and aluminum nitride semiconductor films and their integration onto electronic devices. Phase two will focus on optimizing and maturing the diamond and aluminum nitride technology onto larger diameter wafers for sensor applications.

Quoting from the press release, Colin Whelan, president of Advanced Technology at Raytheon, states that “this is a significant step forward that will once again revolutionize semiconductor technology.” He emphasizes that “Raytheon has extensive proven experience in developing similar materials, such as gallium arsenide and gallium nitride, for Department of Defense systems. By leveraging that pioneering history and our expertise in advanced microelectronics, we will work to advance these materials for future applications.”

(Photo credit: iStock)

Read more

• [News] China’s Gallium and Germanium Export Restrictions Risk Chip Production Shortages
• [News] Chip War Escalates: China to Enforce State Ownership of All Rare Earth Materials in October

Amid the wave of global AI investments, China’s TikTok has confirmed the layoff of employees from its Malaysia division. According to a report by Reuters, over 700 employees have been laid off as the company pivots to increased use of AI for content moderation.

The information was first revealed by local media the Malaysian Reserve last Thursday, as the report notes that over 500 individuals were let go after receiving emails from the company. Most of the workers, according to the report, are said to be involved in content moderation on the platform.

The job cuts come as global tech companies are facing growing regulatory pressure in Malaysia, where the government mandates social media operators to apply for an operating license to combat cyber offenses.

According to a previous report by the South China Morning Post, social media and internet messaging platforms with over 8 million users in Malaysia must obtain a license by New Year’s Eve next year or face penalties under current cyber laws.

It is worth noting that more layoffs might be on the way, according to Reuters. Citing sources familiar with the situation, Reuters suggests that the Chinese tech giant is planning further layoffs next month as it aims to streamline some of its regional operations.

In response to inquiries from Reuters, TikTok confirmed the layoffs last Friday, but refused to provide an exact number of employees affected in Malaysia. According to a TikTok statement cited by Reuters, the company is implementing these changes as part of its ongoing efforts to enhance the global operating model for content moderation.

TikTok utilizes a combination of automated detection and human moderators to review the content posted on its platform, Reuters notes.

Furthermore, the Chinese tech giant reportedly plans to invest USD 2 billion in trust and safety this year and will continue to focus on improving efficiency, noting that 80% of content that violates guidelines is now removed by automated technologies, according to Reuters.

According to the company’s website, ByteDance, TikTok’s parent company, has over 150,000 employees based out of nearly 120 cities worldwide.

Read more

• [News] Despite Geopolitical Tensions, China’s AI Startups Break into the U.S. with Products like Chatbots
• [News] Broadcom Reportedly Developing 5nm AI Chip with ByteDance, Manufactured by TSMC

(Photo credit: TikTok)

A major collaboration between Taiwan and Japan on semiconductors has been halted, as PSMC suddenly informed SBI Holdings in late September that it was unable to proceed with the plan of constructing a fab in Japan as it had promised a year ago. With various speculations circulating concerning the reason behind, SBI Holding Chairman and CEO Yoshitaka Kitao has made his stance.

By harshly criticizing PSMC on his personal Facebook account, he accused the company of dishonesty, according to a report by TechNews.

Kitao referred to the breakup as “a blessing in disguise,” for the partnership has been terminated before any damage has been done, the report notes. He even quoted the saying of Confucius, a well-known Chinese philosopher, to express his disappointment in PSMC. ‘Without trust, one cannot stand,” he said.

According to Kitao, this is the first time SBI Holdings has had to dissolve a partnership almost unilaterally, even after making significant concessions.

According to TechNews, Kitao elaborated on his Facebook by saying that he and Frank Huang, Chairman of PSMC, had met with key government officials together, as well as providing a detailed explanation to the other party regarding the conditions for receiving subsidies from the Japanese government.

However, it is “unbelievable” that the Taiwan-based foundry company went back on their previous commitments and acted with extreme dishonesty, he accused.

According to a previous report by Nikkei, PSMC informed SBI Holdings in September that it was not willing to assume the risks linked to the project. As a result, the two companies will dissolve their partnership aimed at constructing the facility in Miyagi Prefecture in northeastern Japan, which was originally expected to begin mass production by 2027.

Nikkei also notes that PSMC has been struggling with mature nodes due to the oversupply from Chinese firms, resulting in operating losses for five consecutive quarters since Q2 2023.

According to TechNews, PSMC claimed that its collaboration with SBI would follow the Fab IP model, in which the former would provide consulting for the factory establishment, personnel training, and technology transfer, charging service fees and royalties to its Japanese partner, and it has no plans to invest in or lead the operations of the new factory.

Moreover, PSMC reportedly claimed that the subsidy policy of Japan’s Ministry of Economy, Trade and Industry (METI), stipulates that recipients must guarantee continuous production at the new facility for at least 10 years.

Given SBI’s background in finance and that it is without experience in the semiconductor industry, METI required PSMC to share responsibility for this guarantee, as PSMC claimed that being a publicly listed company in Taiwan, guaranteeing the operations of a Japanese factory without holding a controlling stake would violate Taiwan’s Securities and Exchange Act, TechNews notes.

Read more

• [News] PSMC’s Frank Huang Explores Global Expansion through Fab IP, Diverging from TSMC’s Path
• [News] Taiwan’s PSMC Denies Rumors that Financial Troubles Caused the End of Partnership with Japan’s SBI

(Photo credit: PSMC)