Insights
According to TrendForce’s latest memory spot price trend report, regarding DRAM, reball DDR4 and DDR5 chips stripped from modules continue to flow into the spot market, adversely affecting the market outlook. As for NAND flash, contract prices for 3Q24 have exhibited signs of loosening. Some module houses are even selling their high-priced client SSD at a loss in order to rid inventory and reduce overall losses. Details are as follows:
DRAM Spot Price:
Reball DDR4 and DDR5 chips stripped from modules continue to flow into the spot market. Since prices of reball chips are lower compared with eTT chips and are in good quality, these products are adversely affecting the market outlook. Additionally, facing mounting pressure to sell, some module houses with higher inventory levels have started to cut prices, focusing primarily on clearing their stocks. Overall, the spot market is unlikely to see a significant improvement in the short term. The average spot price of mainstream chips (i.e., 1Gx8 2666MT/s) fell by 0.10% from US$1.964 last week to US$1.962 this week.
NAND Flash Spot Price:
Contract prices for 3Q24 that have exhibited signs of loosening, alongside the market’s reserved attitude on the future prospect, have prompted a rather large degree of truncation among retail and channel markets. Some module houses are even selling their high-priced client SSD at a loss in order to rid inventory and reduce overall losses. This phenomenon is likely to persist until 4Q24. Spot price of 512Gb TLC wafers dropped by 3.73% this week, arriving at US$2.710.
Insights
The Reserve Bank of Australia (RBA) announced on September 24 that the cash rate target remain at 4.35%, marking the seventh consecutive month at this level, which is also the highest in nearly 12 years.
In the meeting statement, the RBA noted that restrictive financial conditions continue to suppress consumption, contributing to a slowdown in the economy. However, the unemployment rate remains stable, the labor force participation rate is at a historic high, and job vacancies continue to grow, slightly easing labor market tensions.
The RBA stated that while household consumption is expected to recover in the second half of the year, if the pace is slower than anticipated, it could lead to prolonged weakness in economic output and further softening of the labor market. Moreover, global economic instability and geopolitical risks add to the uncertainty surrounding Australia’s economic outlook.
The RBA also highlighted that recent data reinforces the potential for upside inflation risks. The central bank now expects inflation to return to the target range by the end of 2025 (compared to the previous estimate of mid-2025 in August) and to approach the midpoint of the target range by 2026.
The RBA emphasized that bringing inflation down remains its top priority and stated that it would maintain restrictive monetary policy until there is clear evidence that inflation is steadily returning to the target range. Following this statement, the market now expects the RBA to hold off on cutting rates until February next year.
News
Global Unichip Corp. (GUC), a leading provider of advanced ASIC solutions, announced that its 3nm HBM3E Controller and PHY IP have been adopted by a major cloud service provider and several high-performance computing (HPC) companies. The cutting-edge ASIC is expected to tape out this year, featuring the latest 9.2Gbps HBM3E memory technology.
In the same announcement, GUC highlighted its active collaboration with HBM suppliers like Micron, stating it is developing HBM4 IP for next-generation AI ASICs.
GUC noted that its joint efforts with Micron have demonstrated the ability of GUC’s HBM3E IP to achieve 9.2Gbps with Micron’s HBM3E on both CoWoS-S and CoWoS-R technologies. Test chip results from GUC show successful PI and SI outcomes, with excellent eye margins across temperature and voltage variations at these speeds.
Moreover, when GUC’s HBM3E IP is integrated with Micron’s HBM3E timing parameters, it improves effective bus utilization, further boosting overall system performance.
“We are thrilled to see our HBM3E Controller and PHY IP being integrated in CSP and HPC ASICs.” said Aditya Raina, CMO of GUC. “This adoption underscores the robustness and advantages of our HBM3E solution, which is silicon-proven and validated across multiple advanced technologies and major vendors. We look forward to continuing our support for various applications, including AI, high-performance computing, networking, and automotive.”
“Memory is an integral part of AI servers and foundational to the performance and advancement of data center systems,” said Girish Cherussery, senior director of Micron’s AI Solutions Group. “Micron’s best-in-class memory speeds and energy efficiency greatly benefit the increasing demands of Generative AI workloads, such as large language models like ChatGPT, sustaining the pace of AI growth.”
(Photo credit: GUC)
News
A month ago, Kioxia has reportedly submitted its initial public offering (IPO) application to the Tokyo Stock Exchange. However, as the memory market recently seems to be on a roller coaster ride, the latest report by Reuters notes that the Japanese memory chip maker has decided to cancel its plan to be listed in October.
Citing reports by Japanese media, another report by MoneyDJ indicates that Kioxia’s IPO is expected to be delayed until November or later.
Reuters points out that Kioxia has been aiming for a market valuation of JPY 1.5 trillion (roughly USD 10.39 billion). Nevertheless, the recent decline in shares of other listed memory companies, including Samsung, SK hynix and Micron, has made this target difficult to achieve.
According to Reuters, Bain Capital, which holds a 56% stake in Kioxia along with SK hynix, declined to comment. Kioxia, on the other hand, responded by saying that it is preparing to go public when the timing is right.
This is not the first time Kioxia abandoned its IPO plan. The memory giant had previously scheduled to be listed in 2020. However, due to continued market volatility and ongoing concerns about a second wave of COVID-19, the company gave up the plan in September, 2020.
A few days ago, Japan’s Tokyo Metro initiated the processes to launch its IPO next month. According to The Japan Times, Tokyo Metro aims to raise USD 2.25 billion, marking the country’s largest IPO in six years. Should Kioxia stick to its plan to kick off the IPO by 2024, the deal were to become the largest one of the year.
According to TrendForce, in the NAND Flash market, Kioxia ranked third in revenue in the second quarter of 2024, with a 13.8% market share, after Samsung (36.9%) and SK Group (22.1%).
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(Photo credit: Kioxia)
News
Recently, several 6-inch production lines have made significant advancements, focusing on third-generation semiconductor materials like silicon carbide (SiC) and gallium oxide (Ga2O3).
NEXIC Successfully Completes First Wafer Batch in Its Fab
On September 21, NEXIC announced that it had successfully completed the first wafer batch in its fab. NEXIC focuses on technological innovation and product development in SiC power devices and power modules, part of the third-generation semiconductors. The fab which located in Jiangyin, Jiangsu Province, China, began construction in August 2023, with equipment installation scheduled for August 2024.
Reports indicate that NEXIC’s 6-inch power semiconductor manufacturing project has a total investment of RMB 2 billion. The products can be widely used in electric vehicles, photovoltaic power generation, rail transit, and 5G communication. Once fully operational, the fab is expected to have an annual production capacity of 1 million wafers.
In June of this year, industry news revealed that NEXIC’s third-generation semiconductor power module R&D and production base project had signed an agreement to settle in Xidong New City, Wuxi, China. This project with a total investment of over RMB 1 billion, focuses on building an automotive-grade third-generation semiconductor power module packaging line, covering applications such as main drive systems, ultra-fast charging piles, photovoltaics, and industrial uses. The project is expected to begin production in 2025, with an annual output of approximately 1.29 million units and an estimated annual output value exceeding RMB 1.5 billion.
China’s First 6-Inch Gallium Oxide Monocrystalline and Epitaxial Wafer Growth Line Breaks Ground
On September 10, Fujia Gallium commenced construction of a 6-inch gallium oxide monocrystalline and epitaxial wafer growth line in Fuyang, Hangzhou.
Founded in 2019, Fujia Gallium is committed to the commercialization of ultra-wide bandgap semiconductor gallium oxide materials, focusing on the growth of gallium oxide monocrystals and the development, production, and sale of gallium oxide substrates and epitaxial wafers. Its products are mainly used in power devices, microwave RF, and optoelectronic detection.
It is reported that Fujia Gallium is currently the only company in China capable of both 6-inch monocrystal growth and epitaxy. This project marks the construction of China’s first 6-inch gallium oxide monocrystalline and epitaxial wafer growth line.
RIR’s 6-Inch Silicon Carbide Device Factory Completed with an Investment of INR 5.1 billion
On September 4, RIR Power Electronics Limited announced the completion of its silicon carbide semiconductor manufacturing plant in Odisha, India, with a total investment of INR 5.1 billion.
RIR is a subsidiary of the U.S.-based Silicon Power Group in India, specializing in the production of power electronic components. RIR’s product portfolio includes low to high-power devices and IGBT modules, serving industries such as energy, transportation, renewable energy, and defense.
In July 2023, Silicon Power Group announced the establishment of the SiC factory in Odisha, India, dedicated to producing 6-inch SiC wafers. The investment was made through its Indian subsidiary, RIR. In October 2023, RIR received approval from the Odisha state government to invest INR 5.108 billion in the project, which is expected to be fully operational by 2025.
In addition to RIR, Chennai-based SiCSem Private Limited announced in June its plans to establish a silicon carbide (SiC) manufacturing, assembly, testing, and packaging (ATMP) plant in Odisha, India.
On June 15, SiCSem signed a cooperation agreement with the Indian Institute of Technology Bhubaneswar (IIT-BBS) to collaborate on research in the compound semiconductor field. Their first joint project aims to localize SiC crystal growth at IIT-BBS, focusing on the mass production of 6-inch and 8-inch SiC wafers, with an estimated investment of INR 450 million (approximately RMB 38 million).