Per Korean media theElec on August 19, Samsung Electronics is considering outsourcing part of its Micro LED display production to a third party including China-based MTC.

According to industry sources cited by Korean media, Samsung is currently evaluating the possibility of outsourcing production due to cost considerations, particularly for the low-end Micro LED display targeting markets like India and the Middle East.

Industry sources further reveal that the proportion of outsourced orders is expected to account for 20-30% of Samsung’s total Micro LED display products.

It’s reported that Samsung mainly provides Micro LED display for residential and commercial applications. In TV market, Samsung purchased Micro LED chips from San’an and PlayNitride.

After these chips are placed on substrate, transferred and packaged, Samsung directly handles other processes. For low-end products, the majority of current Micro LED production is done by itself, with only a small portion outsourced.

Technically, Samsung’s latest Micro LED TV uses LTPS TFT (Low-Temperature Polycrystalline Silicon Thin-Film Transistor) technology, while its commercial Micro LED display is still based on PCB technology.

The report suggested that if Samsung outsources the production of commercial Micro LED modules to manufacturers like MTC, they would assemble them for Samsung using PCBA (Printed Circuit Board Assembly) methods.

Given that companies like MTC in China have improved their Micro LED module technology, Samsung believes there is no significant difference between outsourcing production and completing the related module processes in-house.

Moreover, it could reduce production cost. If cooperates with MTC, Samsung expects Micro LED production cost to potentially decrease by 5-10%.

Besides cost reduction, Korean media point out that Samsung’s consideration of outsourcing low-end product production could allow it to focus on Micro LED module bonding and seamless technology, which are closely related to semiconductor manufacturing processes.

Industry sources highlight that the bonding and seamless technology of Micro LED modules are more critical, as these processes determine the final quality of Micro LED, despite the highly overlapping supply chains of Micro LED chips among manufacturers.

In fact, Samsung’s plan to reduce Micro LED cost has long been an open secret within the industry. As per Korean media reports in July, Samsung has already initiated its cost reduction plan and is currently working with relevant partners to push this project forward.

However, it’s worth noting that the potential partner mentioned by Korean media is BMTC. According to information from LEDinside, MTC’s LED business includes two downstream subsidiaries: VMTC and BMTC.

The former focuses on COB fine-pitch display business, while the latter on SMD LED packaging, backlighting, and lighting. If Samsung were to collaborate with MTC on Micro LED manufacturing, the corresponding products would theoretically be VMTC’s COB modules.

Currently, no official confirmation is disclosed, and the actual situation remains to be verified.

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(Photo credit: Samsung)

China’s GPU company Lisuan Technology, based in Shanghai, has averted the crisis of bankruptcy, as it secures around 328 million yuan (nearly USD 46 billion) in financing from domestic NAND/ DRAM manufacturer Dosilicon and others, according to a report by Chinese media outlet Sina.

On August 20^th, Dosilicon made an announcement, stating that it plans to invest 200 million yuan of its own funds to increase the stake in Lisuan Tech. By subscribing to an additional 5 million yuan of Lisuan’s newly registered capital, the memory company will hold approximately 37.88% of Lisuan’s equity.

On the other hand, the report notes that other investors plan to inject a total of 128 million yuan to Lisuan, subscribing to a total of 3.2 million yuan in its newly added registered capital. In total, Lisuan Tech has received 328 million yuan in financing from Dosilicon and others.

Regarding the reasons behind the investment, the report indicates that there is a certain level of synergy between Dosilicon and its target company, Lisuan Tech. As Dosilicon has already established a portfolio of both standard and niche DRAM products, its R&D team can further engage in technical collaboration with the graphics rendering chip design team at Lisuan to enhance the design capabilities of both parties.

The report, citing public information, states that Lisuan Tech, with 20 years of experience in GPU development and design, is one of the few domestic companies in China capable of providing customized high-performance GPU solutions.

The firm’s first 6nm GPU, based on its self-developed ‘Pangu’ architecture, is ready for tape-out, the report suggests. The product even boasts to offer performance on par with NVIDIA’s high-end graphics cards.

However, due to delays in securing financing, the company has fallen into difficulties, with rumors circulating that it was facing bankruptcy.

According to the data cited by the report, in 2023, Lisuan had no revenue and a net loss of 145 million yuan. In the first half of 2024, it reported no revenue and a net loss of 97.9 million yuan. The bulk of the losses was said to stem from R&D investments.

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(Photo credit: Lisuan Tech)

On July 4th, the EU announced a provisional anti-subsidy tariff on electric vehicles imported from China, with a final decision set for October 30th. On August 20th, the EU released a draft decision regarding the final anti-subsidy tariffs, adjusting the rates for different Chinese electric vehicle manufacturers based on the latest investigation progress.

Notably, as per a report from Commercial Times, the tariff on Tesla’s electric vehicles has been reduced from 20.8% in July to 9%. Tariffs on vehicles from BYD and Geely have also been slightly lowered.

On August 20th, the European Commission disclosed its draft decision on the final anti-subsidy investigation for electric vehicles imported from China, making slight adjustments to the proposed rates.

Tesla saw the most significant reduction, while BYD and Geely received minor cuts. Specifically, BYD’s tariff rate was reduced from 17.4% to 17%, and Geely’s from 19.9% to 19.3%.

Additionally, other companies that the EU deemed cooperative will face a tariff of 21.3%. Chinese automakers and SAIC Motor, which were assessed as not fully cooperating with the investigation, will have their tariffs adjusted from 37.6% to 36.3%.

The European Commission also decided not to retroactively impose the anti-subsidy tariffs, with the final decision expected by October 30th.

The EU maintains the opinion that Chinese electric vehicle production benefits from extensive government subsidies and thus proposes a final tariff of up to 36.3%, slightly lower than the provisional 37.6% tariff imposed on Chinese imports in early July.

In response, the China Chamber of Commerce to the EU expressed concerns, stating that both the development of the European automotive industry and reports from the EU itself show insufficient evidence that Chinese new energy vehicles have caused substantial harm to the EU market.

Source: China Chamber of Commerce

The Chamber criticized the EU’s decision to impose trade measures based on a perceived “threat of injury,” arguing that this approach contradicts WTO principles and is unacceptable to the industry.

The Chamber emphasized that the competitive edge of Chinese-made electric vehicles is not due to subsidies but rather stems from industrial scale, supply chain advantages, and intense market competition.

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(Photo credit: Pixabay)

China’s export controls on antimony are set to take effect on September 15th. Furthermore, according to a report from Liberty Times Net, it is indicated that these controls could be escalated, with plans to impose additional restrictions on tungsten by the end of this year.

Addressing the matter, as per another report from CNBC, Lewis Black, CEO of Canada-based Almonty Industries, remarked that just three months ago, no one would have expected China to take such actions.

He pointed out that this move by China has unsettled many in the industry, including clients who lack backup plans—a fact that China is well aware of. Such a situation hasn’t been seen in 30 years.

Additionally, Tony Adock, executive chairman of Tungsten Metals Group, expressed that he views this as the start of broader restrictions on the export of certain rare earths and minerals. He finds it unlikely that China will stop at limiting antimony.

Per the latest annual report from the U.S. Geological Survey, in 2023, China was the world’s largest producer of antimony, with a production of 83,000 tons last year, accounting for 48% of the global supply.

On the other hand, the U.S. did not mine any commercially viable antimony. The report also noted that the U.S. has not engaged in commercial tungsten mining since 2015, with China dominating the global tungsten supply.

Tungsten, with a hardness nearly equivalent to that of diamond, is used in weapons, semiconductors, and industrial cutting tools. Both tungsten and antimony are listed as critical minerals by the U.S. government, and they are located within 10 elements of each other on the periodic table.

In response to these developments, Black’s company is said to be planning to spend at least USD 125 million later this year to reopen a tungsten mine in South Korea.

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(Photo credit: iStock)

According to the reports from EETimes China and Blocks &Files, Western Digital (WD) is said to be considering spinning off its NAND and SSD business, which could be valued similarly to Solidigm.

Reportedly, WD plans to split into two separate business units: one focused on producing hard disk drives (HDDs) and the other on NAND flash memory and SSDs. This strategy is expected to enhance operational efficiency within each unit, allowing them to concentrate on their core strengths and ultimately achieve greater market value.

According to the report, WD CEO David Goeckeler will lead the NAND and SSD unit, while Executive Vice President of Global Operations Irving Tan will take on the role of CEO for the HDD business

Citing calculations by an analyst, the report notes that  the standalone value of WD’s NAND and SSD business could range from USD 10 billion to 22 billion. This suggests that spinning off these businesses could lead to a higher market valuation for the company.

The report states that the market has not yet fully recognized the value of WD’s NAND business, and that the combined independent value of the two companies post-split will be at least USD 30 billion, with the potential to exceed USD 40 billion.

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(Photo credit: Western Digital)