Unlike other major semiconductor manufacturers, including Intel and TSMC, memory giant Micron is not in a hurry to adopt EUV (extreme ultraviolet) lithography for its DRAM production. However, according to a latest report from Technews, in 2024, Micron plans to begin trial production using EUV on its 1γ (1-gamma) process technology at 10-nm level.

The report also notes that currently, all of the company’s mass-produced products are made using DUV (deep ultraviolet) lithography. However, after entering trial production in 2024 with EUV, Micron also anticipates that this process technology will enter large-scale production in 2025.

Another Korean memory giant, Samsung, announced in 2020 that it has successfully shipped one million of the industry’s first 10nm-class (D1x) DDR4 (Double Date Rate 4) DRAM modules based on EUV technology.

In 2021, SK hynix has started mass production of its 10-nm DRAM chips using EUV technology, and is said to invest USD 1.5 billion this year to acquire 8 advanced EUV lithography machines, according to an earlier report from Disc Manufacturer.

Previously, Micron CEO Sanjay Mehrotra stated during an earnings call that the trial production of 10-nm-class 1γ (1-gamma) process DRAM using EUV lithography is progressing well, and they are on track to achieve mass production by 2025 as planned. Currently, Micron is developing the 10-nanometer-class 1γ process DRAM manufacturing technology using EUV lithography at its Hiroshima plant in Japan, which is also the first site for the trial production of 1γ memory, according to Technews.

In order to meet the strong demand for high-performance memory chips driven by AI, Micron is reportedly building a pilot production line for HBM in the U.S. and is considering producing HBM in Malaysia for the first time.

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• [News] Micron’s HBM Expansion at Full Throttle: Rumored to Expand in US, Malaysia Also an Option
• [News] HBM Supply Shortage Prompts Micron’s Expansion, Expected Schedule in Japan and Taiwan Revealed

(Photo credit: ASML)

The memory market is showing signs of recovery, with Japanese NAND giant Kioxia ending its production cut for NAND Flash at the end of June this year. The company’s Yokkaichi Plant and Kitakami Plant have resumed full production capacity. However, this move could influence the overall NAND market, impacting downstream memory companies like Taiwanese NAND manufacturers Phison, ADATA, Team Group and Apacer.

Citing industry sources, a report by the Economic Daily News states that with Kioxia’s capacity utilization returning to 100%, competitors like Samsung and SK Hynix may also increase their production to maintain market share. This potential surge in supply could lead to a market downturn.

Kioxia’s return to full capacity in June means that increased NAND chip production could enter the market as early as August or September, affecting the traditional peak season of downstream Taiwanese NAND controller chip manufacturers such as Phison, ADATA, and Team Group.

The report notes that Phison believes that current market conditions show strong demand for NAND chips used in SSDs. With NAND chip prices having returned to pre-pandemic levels, manufacturers are beginning to see normal profits. To compensate for losses in 2023, prices are expected to remain firm, maintaining a positive cycle.

In contrast, ADATA has a more conservative outlook on the market. The severe losses experienced by major global NAND chip suppliers in 2023 have led to an increase in production capacity and sales to recoup last year’s losses. This could result in another supply glut in the market.

TrendForce observes that restrained production increases in the first half of the year led to a rapid rebound in NAND Flash prices, helping manufacturers return to profitability. However, with significant production expansion planned for the second half of the year and retail market demand still weak, wafer spot prices are declining. The drop has been so significant that some wafer prices are now more than 20% below contract prices, making it difficult to sustain future contract price increases.

From a demand perspective, the third quarter will see continued investments in server infrastructure, particularly benefiting enterprise SSDs due to the expanding use of AI. However, consumer electronics demand remains sluggish, and with aggressive production increases by manufacturers in the latter half of the year, the sufficiency ratio of NAND Flash is expected to rise to 2.3% in the third quarter. The blended price increase for NAND Flash is projected to narrow to 5-10% quarter-on-quarter.

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• Q3 Contract Prices of NAND Flash Products Constrained by Increased Production and Lower End-User Demand; Estimated to Rise by 5–10%, Says TrendForce
• [News] Kioxia Reportedly Starts 218-Layer NAND Mass Production in July with Full Utilization in June

(Photo credit: Kioxia)

Thanks to the rebound in memory chip demand amid accelerated global AI development, Samsung Electronics reported its strongest sales and profit growth in years. According to its financial guidance announced on July 5th, the semiconductor giant projects its operating profit to grow more than 15-fold YoY to 10.4 trillion won (USD 7.5 billion) in its preliminary results for the April-June quarter, outstripping market expectations.

In addition, the company expects its sales to increase by approximately 23% to 74 trillion won. According to a report from Bloomberg, this marks the largest rise since the peak levels seen during the Covid-19 pandemic in 2021.

The forecast is way better than LSEG SmartEstimate’s earlier forecast, which expected Samsung Electronics’ operating profit for Q2 2024 to reach 8.8 trillion won (roughly USD 6.34 billion).

Samsung is scheduled to release final earnings, including divisional breakdowns, on July 31.

It is also worth noting that Samsung is releasing its results just days ahead of planned three-day walkouts by union organizers, starting from July 8th. According to Bloomberg, the move would involve over 28,000 members, including those at crucial chip plants, due to a wage dispute. The extent of participation in Monday’s walkout remains uncertain at this time.

Citing market sources, the report noted that Samsung’s Q2 financial results highlight the memory market’s robust recovery this year from a sharp decline post-Covid, driven by increased demand from data centers and AI development, which contributes to a turnaround in Samsung’s largest division, which had incurred losses the previous year.

According to TrendForce, Samsung’s global share of DRAM and NAND Flash output in 2023 was 46.8% and 32.4%, respectively. An earlier report by the Korea Economic Daily indicated that Samsung’s HBM production has been sold out in 2024.

According to the latest forecast by Trendforce, the HBM market is poised for robust growth, driven by significant pricing premiums and increased capacity needs for AI chips. HBM prices are expected to Increase by 5–10% in 2025.

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• [News] Samsung Establishes New HBM Team to Advance HBM3, HBM3e and HBM4 Development
• Samsung Strike Has No Immediate Impact on Memory Production, with No Shipment Shortages, Says TrendForce

(Photo credit: Samsung)

In order to address the growing demand for high-performance memory solutions fueled by the expansion of the artificial intelligence (AI) market, Samsung Electronics has formed a new “HBM Development Team” within its Device Solutions (DS) Division to enhance its competitive edge in high-bandwidth memory (HBM), according to the latest report from Business Korea. The new team will concentrate on advancing the progress on HBM3, HBM3e, and the next-generation HBM4 technologies, the report noted.

This initiative comes shortly after the Korean memory giant changed its semiconductor business leader in May. Citing industry sources, the report stated that Samsung’s DS Division carried out an organizational restructuring centered on the establishment of the HBM Development Team.

Also, the move attracts attention as on July 4th, a report from Korea media outlet Newdaily indicated that Samsung has finally obtained approval from NVIDIA for qualification of its 5th generation HBM, HBM3e, though the company denied the market rumor afterwards.

Samsung has a long history of dedicating to HBM development. Since 2015, it has maintained an HBM development organization within its Memory Business Division. Earlier this year, the tech heavyweight also created a task force (TF) to boost its HBM competitiveness, and the new team will unify and enhance these ongoing efforts, the report noted.

According to the report, Samsung reached a significant milestone in February by developing the industry’s first HBM3e 12-layer stack, which offers the industry’s largest capacity of 36 gigabytes (GB). Samples of the HBM3e 8-layer and 12-layer stacks have already been sent to NVIDIA for quality testing.

Regarding the latest development, TrendForce reports that Samsung is still collaborating with NVIDIA and other major customers on the qualifications for both 8-hi and 12-hi HBM3e products. Samsung anticipates that its HBM3e qualification will be partially completed by the end of 3Q24.

According to TrendForce’s latest analysis on the HBM market, HBM production will be prioritized due to its profitability and increasing demand. However, limited yields of around 50–60% and a wafer area 60% larger than DRAM products mean a higher proportion of wafer input is required. Based on the TSV capacity of each company, HBM is expected to account for 35% of advanced process wafer input by the end of this year, with the remaining wafer capacity used for LPDDR5(X) and DDR5 products.

Read more

• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor
• HBM3e Production Surge Expected to Make Up 35% of Advanced Process Wafer Input by End of 2024, Says TrendForce

(Photo credit: Samsung)

On July 1, GlobalFoundries (GF), a major foundry player, announced that it has acquired Tagore Technology’s production-verified proprietary GaN (Gallium nitride) power IP portfolio, which refers to a high-power density solution designed to enable higher efficiency and better performance of automobile, IoT, and AI data center applications where power supply is widely used.

Founded in January 2011, Tagore Technology focuses on developing GaN-on-Si (Gallium nitride on silicon) semiconductor technology for RF and power management applications.

As part of the acquisition, a team of veteran engineers from Tagore, dedicated to developing GaN technology, will join GF. “With this acquisition, GF takes another step toward accelerating the availability of GaN and empowering our customers to build the next generation of power management solutions that will reshape the future of mobility, connectivity and intelligence,” said Niels Anderskouv, chief business officer at GF.

It is worth mentioning that in February 2024, GF received a direct subsidy of USD 1.5 billion under the US CHIPS and Science Act, with part of the funds allocated to the mass production of critical technologies, including GaN.

By combining this manufacturing capability with the technical expertise of the Tagore team, GF is well positioned to transform the efficiency of AI systems and enable lower power consumption particularly pivotal for edge or IoT devices.

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• [News] SK keyfoundry Advances in GaN Power Semiconductors, Reportedly Producing for Tesla Soon
• [News] Infineon in GaN and SiC Expansion Drive Advancements in the New Energy Market

(Photo credit: GF)