Starting from July 8^th, Samsung Electronics’ labor union, comprising over 28,000 workers, has initiated a three-day strike. However, as the dispute with Samsung escalates, the union declared earlier today that the workers plan to go on an indefinite strike, according to reports from Bloomberg and BBC.

On Monday, thousands of workers gathered outside Samsung’s chipmaking facilities south of Seoul to begin what was initially a three-day walkout aimed at securing improved pay. This marks the largest organized labor action in the conglomerate’s fifty-year history.

As the two parties are unable to reach a consensus, the three-day strike seems to further prolong. According to Bloomberg, the union announced on its website that as the management has shown no willingness to engage in dialogue, they have identified clear disruptions in production, and the company will regret this stance.

However, Samsung has challenged the assertion, saying that it will take necessary steps to prevent any disruptions in production lines. The company remains dedicated to conducting negotiations with the union in good faith, according to BBC’s report.

Regarding the impact of the Samsung strike, TrendForce analyzed that because semiconductor factories rely on automated production with low actual manpower requirements, the strike did not affect Samsung’s production. Even if the strike is extended, the current assessment is that there will still be no significant impact.

The strike does come at a sensitive time, though, as the tech giant has a busy schedule ahead. It is going to unpack its latest Galaxy lineup in Paris soon, while the company is also working on the qualification of its HBM3e products with NVIDIA.

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• [News] Samsung, SK Hynix and Micron Ramp Up HBM Production, Reportedly Doubling Output Next Year
• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor

(Photo credit: Samsung)

According to a report from Commercial Times, SK Hynix, Samsung, and Micron, the world’s top three memory manufacturers, are actively investing in high-bandwidth memory (HBM) capacity expansion plans. Industry sources cited by the same report estimate that by 2025, the additional production will reach approximately 276,000 units, bringing the total capacity to 540,000 units, an annual increase of 105%.

Regarding the latest developments in HBM, TrendForce indicates that HBM3e will become the market mainstream this year, with shipments concentrated in the second half of the year.

Currently, SK Hynix remains the primary supplier for HBM, along with Micron, both utilizing 1beta nm processes and already shipping to NVIDIA. Samsung, using a 1alpha nm process, is expected to complete qualification in the second quarter and begin deliveries mid-year.

Regarding major memory players’ expansion plans on HBM, Samsung is gradually upgrading its Pyeongtaek facilities (P1L, P2L, and P3L) in South Korea to be used for DDR5 and HBM. Meanwhile, the Hwaseong facilities (Line 13, 15, and 17) are being upgraded to the 1α process, retaining only a small portion of capacity at the 1y/1z process to meet the demands of specialized industries such as aerospace.

SK Hynix produces HBM at its M16 production line in Icheon, South Korea, and is upgrading its M14 production line to the 1α/1β process to supply DDR5 and HBM products. Additionally, after receiving clearance from the U.S. government, its Wuxi plant in China is actively upgrading from the 1y/1z process to the 1z/1α process for producing DDR4 and DDR5 products.

Micron’s HBM production is conducted at its Hiroshima plant in Japan, with capacity expected to increase to 25,000 units in the fourth quarter of this year. In the long term, Micron plans to introduce EUV processes (1γ, 1δ) and build a new cleanroom.

In the short term, Micron will utilize its production capacities at the Linkou and Taichung plants in Taiwan, increasing the proportion of 1β process. By the end of 2025, the total production for HBM is expected to reach around 60,000 units.

According to Commercial Times, the HBM production volume of the world’s top three manufacturers will maintain high growth for two consecutive years, with the global total wafer production volume expected to reach approximately 540,000 units per month by the end of 2025.

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• [News] Samsung Establishes New HBM Team to Advance HBM3, HBM3e and HBM4 Development
• HBM3e Production Surge Expected to Make Up 35% of Advanced Process Wafer Input by End of 2024, Says TrendForce

(Photo credit: SK Hynix)

After Samsung announced a major breakthrough in 2nm, securing the first batch of orders from Japanese AI company Preferred Networks, its rival TSMC is also advancing. According to reports from Wccftech and ET News, TSMC is set to begin trial production of 2nm chips next week, which would reportedly be used in the upcoming iPhone 17 lineup in 2025.

The reports note that the trial production will be conducted in TSMC’s Baoshan Plant in Hsinchu, northern Taiwan, as facilities have been brought in during the second quarter. The iPhone 17 lineup is rumored to be the first to feature TSMC’s 2nm chips. Following that, the chips will likely be used in the 14-inch and 16-inch MacBook Pro models.

According to a previous report by MoneyDJ, TSMC’s 2nm production bases are located in Hsinchu Science Park and Kaohsiung, southern Taiwan, while the mass production is expected to kick off in Hsinchu first, with an initial monthly capacity of approximately 30,000 to 35,000 wafers.

Apple and TSMC share a long history of partnership, as the smartphone giant’s A17 Pro, M3 and M4 chips are all manufactured with TSMC’s 3nm node. As TSMC reportedly plans to enter 2nm trial production next week for Apple’s M5 chip, the company’s target for 2nm to enter mass production in 2025 would be on schedule, Wccftech notes.

According to Wccftech, The M5 chip, compared to its predecessor M4, is expected to have performance increase of 10 to 15 percent and a power consumption reduction of up to 30 percent compared to current 3nm-based chips.

Regarding the progress of other semiconductor heavyweights on 2nm, Samsung is said to commence mass production of 2nm chips for mobile devices by 2025. The initial SF2 2nm process will be ready next year, followed by an enhanced version, SF2P, in 2026. Its latest 2nm process, SF2Z, has incorporated optimized backside power delivery network (BSPDN) technology, and will enter mass production in 2027.

On the other hand, Intel’s 20A manufacturing technology (2nm) is reportedly scheduled for launch in 2024, introducing two technologies: RibbonFET surround gate transistors and BSPDN.

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• [News] The Imminent Arrival of 2-Nanometer Advanced Process
• [News] TSMC Reportedly Invests over USD 12.3 Billion in EUV, Advancing in 2nm Production

(Photo credit: Apple)

Samsung Electronics has received the first client for its 2nm process. According to the official press release from Samsung on July 9th, Samsung Electronics will provide turnkey semiconductor solutions using the 2nm process and the advanced 2.5D packaging technology Interposer-Cube S (I-Cube S) to Japanese AI company Preferred Networks.

Per a previous report by SamMobile, Samsung is set to commence mass production of 2nm chips for mobile devices by 2025. The initial SF2 2nm process will be ready next year, followed by an enhanced version, SF2P, in 2026. In addition, according to Samsung’s press release, its latest 2nm process, SF2Z, has incorporated optimized backside power delivery network (BSPDN) technology, and will enter mass production in 2027.

Preferred Networks was founded in 2014 and is in the field of AI deep learning development. The company has attracted significant investments from major Japanese industrial enterprises such as Toyota, NTT, and Fanuc. The order placed with Samsung’s foundry division for 2-nanometer AI chips also includes HBM and advanced packaging.

As per the official release, Junichiro Makino, VP and Chief Technology Officer (CTO) of Computing Architecture at Preferred Networks stated that as Samsung Electronics’ 2nm GAA process will significantly support Preferred Networks’ ongoing efforts to build highly energy-efficient, high-performance computing hardware that meets the ever-growing computing demands from generative AI technologies, especially large language models.

Driven by the strong demand from AI chips, Samsung expects the revenue of global chip industry to grow to USD 778 billion by 2028, according to Siyoung Choi, President and General Manager of the Foundry Business in Samsung, the report noted.

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• [News] Samsung Unveils Next-gen 2nm Node Roadmap; SF2Z with Backside Power Delivery to Enter Production in 2027
• [News] Samsung Secures 2-Nanometer Order from Japanese AI Startup Preferred Networks

(Photo credit: Samsung)

The China Association for Science and Technology (CAST) recently listed challenges facing China’s semiconductor industry. However, the list did not include lithography. According to a report from TechNews, it’s believed that the move to exclude lithography is more of a political consideration aimed at downplaying the impact of US sanctions on China’s local chip manufacturing industry rather than fostering innovation in lithography equipment within China.

Reportedly, Chinese leader Xi Jinping once told the Dutch Prime Minister that China does not need the help from ASML, the world’s leading advanced lithography system manufacturer, to drive its technological development. Currently, Shanghai Micro Electronics (SMEE) and Naura Technology Group in China aim to develop exposure equipment for the first time by April 2024.

However, regarding in the overall semiconductor manufacturing process in China, the production rate of Chinese chip manufacturing equipment is only 20%, with a global market share of less than 1%. In contrast, ASML holds a global market share of 93%.

EUV (Extreme Ultraviolet) lithography equipment is crucial for manufacturing next-generation chips. Even if Chinese companies had obtained these devices before US sanctions, they still require ongoing maintenance and support. The US ban has cut off this supply line, meaning the currently used exposure equipment will eventually cease to operate.

Unless China makes significant breakthroughs in the semiconductor lithography equipment industry, it will face many obstacles in advanced processes. Some industry leaders have already urged their companies to focus on traditional chips and 3D packaging rather than attempting to continue with advanced processes.

Currently, many companies are still striving to circumvent Washington’s sanctions. For instance, Huawei is establishing a major research and development center for exposure and wafer fabrication equipment. Yet, per an earlier report from Reuters, Peter Wennink, former CEO of ASML, stated in an interview that the chip war between China and the US will not be resolved anytime soon and could potentially persist for decades.

Other Chinese companies are also exploring open standard technologies like RISC-V. However, given the current situation, it could take China several years, if not decades, of research and development to catch up with mainstream exposure equipment manufacturers.

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• [News] ASML Former CEO Predicts Chip War Between China and the US May Persist for Decades
• [News] US to Lobby Netherlands and Japan to Contain China’s Chip Development, Focusing on HBM

(Photo credit: ASML)