ACM Research, Inc., a provider of wafer processing solutions for semiconductor and advanced wafer-level packaging applications in China, announced on September 3rd the release of its Ultra C bev-p panel bevel etching tool for fan-out panel-level packaging (FOPLP) applications.

This new tool is designed for bevel etching and cleaning in copper-related processes, offering dual-side bevel etching for both the front and back of panels within a single system, further boosting process efficiency and enhances product reliability.

Moreover, a day after the announcement, the company further revealed that it had received purchase orders for four wafer-level packaging tools, including two from a U.S.-based customer and two from a U.S.-based research and development (R&D) center.

Dr. David Wang, ACM’s president and chief executive officer, believes that FOPLP will grow in importance as it addresses the evolving needs of modern electronic applications, offering benefits in integration density, cost efficiency, and design flexibility.

Reportedly, the new Ultra C bev-p tool is designed to deliver advanced performance, utilizing ACM’s expertise in wet processing. It is one of the first tools to incorporate double-sided bevel etching for horizontal panel applications.

Together with the Ultra ECP ap-p for electrochemical plating and the Ultra C vac-p flux cleaning tools, the Ultra C bev-p is expected to support the FOPLP market by enabling advanced packaging on large panels with high-precision features.

ACM emphasizes that the Ultra C bev-p tool is a critical enabler for FOPLP processes, employing a wet etching technique tailored for bevel etching and copper residue removal.

This process plays a vital role in preventing electrical shorts, reducing contamination risks, and preserving the integrity of subsequent processing steps, ensuring long-term device reliability. The tool’s effectiveness is driven by ACM’s patented technology, designed to tackle the specific challenges of square panel substrates.

Different from traditional round wafers, ACM’s design is said to ensure precise bevel removal process that stays confined to the bevel region, even on warped panels. This is essential for maintaining the integrity of the etching process while ensuring the high performance and reliability needed for advanced semiconductor technologies.

Currently, major players in the FOPLP advanced packaging field include Powertech Technology, ASE Group, SPIL, TSMC, Innolux, JSnepes, and Samsung Electro-Mechanics.

TrendForce points out that FOPLP technology presents advantages and disadvantages. Its main strengths are lower unit cost and larger package size, but as its technology and equipment systems are still developing, the commercialization process is highly uncertain.

It is estimated that the mass production timeline for FOPLP in consumer IC and AI GPU may fall between the second half of 2024 to 2026, and 2027-2028, respectively.

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• [News] ACM Research Steps into FOPLP Advanced Packaging Field
• [News] TSMC Reportedly Forms a Team on FOPLP Development, with Mini Line on the Road 

(Photo credit: ACMR)

While Samsung Electronics is said to be delivering an oversea workforce cut up to 30%, a report from Korean media outlet Business Korea on September 11th has added that persistent issues with its 2nm yield rate have led Samsung to decide to withdraw personnel from its Taylor, Texas plant, signaling another setback for its advanced wafer foundry business.

Originally envisioned as a mass production hub for advanced processes below 4nm, the Taylor facility’s strategic location near major tech companies was intended to attract U.S. clients. However, despite rapid development, Samsung continues to face 2nm yield issues, resulting in performance and production capacity falling short of its main competitor, TSMC.

Reportedly, Samsung’s wafer foundry yield is below 50%, particularly in processes below 3nm, while TSMC’s advanced process yield is around 60-70%. This gap has widened the market share difference between the two companies.

As per a report from TrendForce, TSMC held a 62.3% share of the global wafer foundry market in the second quarter, while Samsung’s market share was only 11.5%.

Industry sources cited by Business Korea further added that Samsung’s Gate-All-Around (GAA) yield is around 10-20%, which is insufficient for handling orders and mass production. Such yields have forced Samsung to reconsider its strategy and withdraw personnel from the Taylor plant, leaving only a minimal number of staff.

Samsung Electronics had signed a preliminary agreement to receive up to KRW 9 trillion in subsidies from the U.S. Chips Act. However, a key condition for receiving the funding is that the plant must operate smoothly, and Samsung’s current difficulties put this agreement at risk.

Reportedly, Samsung Chairman Lee Jae-Yong personally visited major equipment suppliers like ASML and Zeiss, hoping to achieve breakthroughs in process and yield improvements. However, there have been no significant results so far, and it remains uncertain when personnel might be reassigned back to the Taylor plant.

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• [News] Samsung Reportedly Buckling Under Pressure, with Plans to Cut Overseas Workforce by Up to 30%
• [News] Samsung Signals Will to Collaborate with Other Foundries on Basedie

(Photo credit: Samsung)

According to a report from Reuters citing sources, Samsung Electronics, the global leading manufacturer of smartphones, TVs, and memory, is said to be cutting up to 30% of its overseas workforce in certain departments.

Per the same report, sources revealed that Samsung has instructed its global subsidiaries to reduce sales and marketing staff by around 15% and management personnel by as much as 30%. The plan, set to be implemented by the end of this year, will affect jobs across the Americas, Europe, Asia, and Africa.

Additionally, other industry sources reportedly confirmed Samsung’s global layoff plan as well. However, details about the extent of the layoffs remain confidential, making it unclear how many employees will be affected and which countries or business units will be hit the hardest.

Amid these rumored layoffs, Samsung is grappling with increasing pressure on its key departments. In May, the company replaced the head of its semiconductor division to tackle the ongoing chip crisis, as it strives to catch up with competitor SK hynix in supplying high-end memory used in AI chipsets.

In the premium smartphone market, Samsung faces fierce competition from Apple and China’s Huawei, while it has also lagged behind TSMC in chip manufacturing.

A source pointed out that the layoffs are aimed at addressing the slowdown in global tech product demand due to the global economic downturn. Another source, however, mentioned that Samsung is looking to boost profits by cutting costs.

Per Reuters, Samsung has noted in a statement, claiming that some workforce adjustments in its overseas operations are routine measures aimed at improving efficiency. The company stated that these plans do not have specific targets and added that production staff would not be affected.

According to Samsung’s 2024 sustainability report, as of the end of 2023, the company employed 267,860 people, with over half (147,104 employees) located overseas. The report indicated that the majority of jobs were in manufacturing and development, with 25,136 employees in sales and marketing, and 27,887 in other areas.

Other sources cited by Reuters revealed that the global directive for layoffs was issued about three weeks ago. Samsung’s India operations have already offered severance packages to some mid-level employees who have left in recent weeks, with the total number of employees expected to leave the Indian subsidiary potentially reaching 1,000.

Samsung employs around 25,000 people in India, where the company generates an annual revenue of approximately USD 12 billion. Wage strikes are currently disrupting production in the country.

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• [News] Samsung Partners with TSMC, Its Foundry Rival, on HBM4 Development
• [News] Samsung Signals Will to Collaborate with Other Foundries on Basedie

(Photo credit: Samsung)

Amid concerns on the delay of NVIDIA’s Blackwell, CEO Jensen Huang spoke at the Goldman Sachs Communacopia and Technology Conference a few hours ago, trying to ease the doubts of the market by expressing his optimism on the demand of its products and the company’s future prospects.

“We have a lot of people on our shoulders, and everybody is counting on us,” said Huang, according to a report by Yahoo Finance. He even joked that as the world relies so much on the company, the engineers may have to spend more time on work. “Less sleep is fine. Three solid hours is all we need.”

Huang also elaborated on the demand for the delivery of NVIDIA’s components, technology, infrastructure and software, stating that it is so overwhelming that people may get “emotional,” as it has a direct impact on their revenue and competitiveness.

It is worth noting that Huang also mentioned that NVIDIA heavily relies on TSMC for producing its most important chips, as in many ways, according to a report by Economic Daily News. He said TSMC’s agility and ability to respond to demand are incredible.

Huang stated that most of NVIDIA’s technology is self-developed, and if necessary, orders could be shifted to other suppliers. However, such adjustments could lead to a decline in chip quality, according to the report.

According to a previous report from Commercial Times, NVIDIA has reportedly executed changes to the Blackwell series’ GPU mask. Therefore, the process can now proceed without re-taping out, with NVIDIA’s updated version of B200 expected to be completed by late October, allowing the GB200 to enter mass production in December.

Moreover, in his latest meeting with Goldman Sachs, Huang noted that the first trillion dollars of data centers is going to get accelerated, creating a new type of software, generative AI.

Citing Huang’s remarks, the report by Yahoo Finance stated that it matters a lot because generative AI is not just a tool but a “skill,” so for the first time, the AI chip giant is developing skills that will enhance human capabilities.

According to Yahoo Finance, Huang said that NVIDIA, along with cloud service providers (CSPs), build the infrastructure in the cloud so developers can access these machines to train, fine-tune, and safeguard models.

It is worth noting that Huang tried to materialize the benefit, saying that for every dollar a CSP spends with NVIDIA, it results in USD 5 worth of rentals. He also said while training AI models is resource-intensive, it pays off in the long run.

Citing Huang, the report stated that NVIDIA’s servers may seem expensive at first glance, as it potentially costs a couple of million dollars per rack. However, they replace thousands of nodes. What is remarkable is that the cost of cables for old, general-purpose computing systems is higher than consolidating everything into a single, dense rack, Huang said.

According to Yahoo Finance, Huang also noted that the days of software engineers writing every line of code are completely behind. In his vision, every software engineer will have digital companions working alongside them 24/7.

In addition, NVIDIA, with its 32,000 employees, hopes to be supported by “100 times more digital engineers” in the near future, the report noted.

Notably, there seems to be another piece of good news for the U.S. chip giant. According to a report by Reuters, the U.S. government is said to be mulling, allowing NVIDIA to export advanced chips to Saudi Arabia, which would enable the country to train and operate the most powerful AI models.

According to the report, Saudi Arabia expects to receive shipments of NVIDIA’s most advanced chips, the H200s, which were first used in OpenAI’s GPT-4o.

Read more

• [News] NVIDIA’s Blackwell Overcomes Delays, as GB200 Reportedly Sets for December Mass Production
• [News] Foxconn Remains Unfazed Despite NVIDIA’s GB200 Delay, with Customers Aim to Secure Their Orders

(Photo credit: NVIDIA)

The U.S. inflation continued to ease in August, as reported by the Bureau of Labor Statistics on September 11. The Consumer Price Index (CPI) increased by 2.5% year-on-year (previously 2.9%), with a monthly increase of 0.2% (unchanged from 0.2% in July). The core CPI, which excludes food and energy, remained steady with an annual increase of 3.2% (same as the previous 3.2%), and a monthly increase of 0.3% (up from 0.2%).

Breaking down the data, the decline in the annual CPI growth rate was largely driven by a reduction in energy prices, benefiting from last year’s high base effect. Energy prices fell 4% year-on-year (previously up 1.1%). However, core CPI, excluding food and energy, remained unchanged, primarily due to a rebound in housing services prices. The annual growth rate of housing services prices increased to 5.2% in August (up from 5.1%), with a monthly increase of 0.5% (up from 0.4%).

Housing prices have consistently been the largest impediment to the decline in core CPI. However, due to the recent slower pace of reduction, the market now anticipates an 85% probability of a 25-basis-point rate cut in September (up from 66% prior to the release of the CPI data). Moreover, the market expects a total of four rate cuts throughout 2024, with one in September, two in November, and one in December.

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