According to a report from Korea media outlet Yonhap News Agency, South Korea’s memory export to Taiwan has surged by 225% in the first half of the year.

The primary driver of this increase is reportedly due to South Korean chipmaker SK hynix’s supply of HBM to U.S. AI chip giant NVIDIA, which packages its AI accelerators at Taiwan’s TSMC.

A researcher at the Korea Institutes for Industrial Economics & Trade, Kim Yang-paeng, also noted that the sharp increase in exports is likely related to SK hynix’s supplies for TSMC’s final packaging of AI accelerators.

The report from Economic Daily News further highlights the strong momentum in NVIDIA’s AI chip shipments, with TSMC, as the key manufacturing partner, receiving steady advanced process orders.

The report from Yonhap News Agency also cited data from the industry ministry and the Korea International Trade Association released on August 11th, showing that South Korea’s memory exports to Taiwan in the first half of the year grew by 225.7% year-on-year, reaching USD 4.26 billion.

This growth significantly outpaces the overall increase in South Korea’s memory exports, which was 88.7%. Additionally, Taiwan has become South Korea’s third-largest market for memory exports in the first half of the year, climbing two spots to surpass Vietnam and the United States.

Another Korean media outlet, The Korea Herald, noted that since the 2010s, South Korea’s annual memory exports to Taiwan have ranged between USD 1 billion and 4 billion. The latest data indicates that this year’s export volume may set a new record, potentially reaching USD 8 billion.

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(Photo credit: SK hynix)

As September draws closer and iPhone 16’s release date is nearing, suppliers have been ramping up their production of iPhone 16 OLED panels in preparation. According to the reports by ETNews and MacRumors, Samsung Display and LG Display started initial production of iPhone 16 OLED panels as early as in June, and have substantially boosted production over the past month.

ETnews notes that Apple is forecasting shipments of approximately 90 million iPhone 16 units this year, while the production of OLED panels is estimated to be around 30% higher, totaling about 120 million units.

Among them, Samsung is said to have the lion’s share by supplying around 80 million OLED panels by the end of this year, while LGD is projected to provide approximately 43 million panels, according to ETnews. Both companies are on track to meet these production targets.

The reports states that the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max will have a design similar to the iPhone 15 models, but Apple is increasing the sizes of the iPhone 16 Pro and iPhone 16 Pro Max.

The iPhone 16 Pro will feature a 6.3-inch display, up from 6.1 inches, while the iPhone 16 Pro Max will have a 6.9-inch display, an increase from 6.7 inches. The display sizes for the standard iPhone 16 models will remain unchanged, with the iPhone 16 maintaining a 6.1-inch display and the iPhone 16 Plus featuring a 6.7-inch display.

Earlier in May, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from The Elec. Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels.

It seems that Apple tends to release more OLED orders to LGD and counts on it to be a solid second supplier. Another report by The Elec reveals that Apple is likely to use LGD as the second supplier for the OLED screens of next year’s iPhone SE 4. The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE.

Read more

• [News] Apple May Choose LGD as Second Supplier for iPhone SE 4 OLED
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(Photo credit Apple)

Tesla, the electric vehicle giant, initially planned to establish a plant in Thailand, with an estimated investment exceeding USD 5 billion. However, according to a report from Thai media outlet The Nation, Tesla has decided to scrap the plans for the Thai plant after further evaluation, shifting its focus to expanding the local charging station network instead.

The report further cited sources, indicating that Tesla has re-evaluated its expansion plans in Asia and has decided to cancel all projects in the region. This includes not only the planned one in Thailand but also projects in Malaysia and Indonesia, leaving only the most economically viable production lines in China, the U.S., and Germany.

In September 2023, Thai Prime Minister Srettha Thavisin announced the successful attraction of Tesla to Thailand following a visit to the U.S. In November, Srettha met with Tesla executives and revealed that the company had begun site evaluation for a plant, with an investment exceeding USD 5 billion.

However, due to significant changes in the electric vehicle market impacting expected investment returns, Tesla has decided to postpone its global expansion plans.

Besides the aforementioned Asian locations, Tesla had also planned to build a plant in the Nuevo León industrial park in northeastern Mexico. However, Tesla reportedly confirmed in October 2023 that the plan is on hold due to economic concerns.

Thailand is reportedly the largest automotive producer in Southeast Asia. With the global trend shifting towards electric vehicles replacing traditional combustion engines, the Thai government is said to be promoting related policies to boost local EV production.

The goal, as per a report from Bloomberg, is expected to have electric vehicles make up 30% of the country’s total automotive production by 2030.

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(Photo credit: Tesla)

Japanese semiconductor equipment maker Tokyo Electron (TEL) has raised its profit forecast for the fiscal year 2024 (ending March 2025), expecting an operating profit of JPY 627 billion (approximately USD 4.3 billion), an 8% increase from its previous guidance.

Tokyo Electron contributed the strong growth trend compared to the previous fiscal year, driven by China’s significant investment in mature semiconductor nodes. The company has also raised its sales and profit outlook for the period from April to September.

For the quarter ending in June, Tokyo Electron reported revenue of JPY 555 billion, reversing a declining trend seen since 2022. Operating profit for these three months was JPY 165.7 billion.

Source: TEL

The past year, to Tokyo Electron, has been in turbulence year, as initial optimism from AI demand and the semiconductor manufacturing industry was tempered by U.S. export restrictions.

Regarding the matter, Hiroshi Kawamoto, finance division officer of Tokyo Electron, stated in a conference call that there are currently no signs of the U.S. implementing stricter restrictions on chip-making tools, while the company will continue to closely monitor the situation.

As of the quarter ending in March, over 47% of its revenue came from China due to increased equipment stockpiling in anticipation of potential U.S. sanctions. In the recent quarter, nearly 50% of revenue was generated from the Chinese market.

Source: TEL

Looking ahead to the next fiscal year (FY2025), Tokyo Electron expects double-digit growth, driven by strong demand for AI servers and an increase in AI-enabled PCs and smartphones.

This resurgence in demand is anticipated to boost the market. The company expects further expansion in DRAM production and a recovery in NAND investment due to inventory adjustments. However, investment in advanced logic and foundry services is expected to offset the slowdown in mature process technologies.

China’s two major semiconductor foundries, Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor, released their Q2 2024 financial results on August 8.

Both companies reported sharp declines in net profit. SMIC, the leading foundry, saw its Q2 revenue increase by 21.8% year-over-year to USD 1.901 billion, but its net profit fell by 59.1% to USD 165 million.

Moreover, SMIC’s financial report indicates that the company expects its revenue to increase by 13% to 15% quarter-over-quarter in the third quarter, with a gross margin between 18% and 20%.

SMIC stated that its second-quarter revenue and gross margin both exceeded expectations, driven by an increase in wafer sales. Its revenue grew by 9% quarter-over-quarter to USD 1.9 billion, and the gross margin rose by 0.2 percentage points to 13.9%.

The company shipped over 2.11 million 8-inch equivalent wafers, marking an 18% increase from the previous quarter. However, the average selling price per wafer declined by 8% due to changes in the product mix.

On the other hand, Hua Hong Semiconductor’s Q2 revenue decreased by 24.2% year-over-year to USD 478.524 million, primarily due to a decline in average selling prices, though this was in line with expectations. Net profit dropped by 91.5% to USD 6.673 million. The gross margin stood at 10.5%.

Hua Hong Semiconductor’s financial report projects that third-quarter revenue will be between USD 500 million and 520 million, with a gross margin of approximately 10% to 12%.

Hua Hong Semiconductor’s President, Junjun Tang, further noted that the global semiconductor market is experiencing a gradual recovery from its bottom. After several quarters of sustained weakness, there are signs of stabilization and recovery in certain areas, driven by sectors like consumer electronics. The company’s second-quarter capacity utilization improved further from the first quarter, nearing full production.

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• [News] Huawei’s Mate 70 Will Reportedly Use a Kirin SoC Made with SMIC’s 7nm Node instead of 5nm
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(Photo credit: SMIC)