Following US sanctions in August 2019, Huawei’s internal operating system backup, HarmonyOS, emerged and has been in development for nearly 5 years. Currently, HarmonyOS is widely recognized, and its native version is set to launch on June 21st, marking the cornerstone of Huawei’s ambitious HarmonyOS project.

According to a report from UDN, Huawei is pursuing a dual-track development strategy for HarmonyOS. Internally, it focuses on its “1+8+N” terminal business strategy: “1” refers to smartphones, “8” includes large screens (TVs), tablets, PCs, wearables, car units, and more, while “N” covers a wide range of IoT devices. This approach aims to expand and flourish the HarmonyOS ecosystem.

In essence, HarmonyOS follows two main paths, while the first shares similar market positioning with current market leaders Android and iOS in the consumer sector, primarily focused on Huawei’s own terminal devices, aiming to expand the HarmonyOS ecosystem within the consumer domain.

The second path is OpenHarmony, also known as Open Source HarmonyOS. Reportedly, this initiative involves Huawei’s ecosystem partners leveraging Huawei’s donated OpenHarmony code base to develop their own commercial versions of HarmonyOS. These partners utilize their industry expertise and resources to vertically expand into sectors such as education, finance, transportation, and more. OpenHarmony primarily targets industrial applications.

Vertically, Huawei is reportedly looking to integrate HarmonyOS and OpenHarmony through foundational technology, establishing interoperability and connectivity to create an unified HarmonyOS. This strategic integration is designed to position HarmonyOS as a world-class operating system for the future IoT, aligning with Huawei’s ultimate goal of establishing HarmonyOS as a global IoT OS.

Recently, the unified device interconnection technology standards for OpenHarmony were officially released. Huawei’s Consumer Business Group Chairman, Richard Yu, recently disclosed plans to unify application and service ecosystems across Harmony OS and the commercial versions of OpenHarmony. This initiative aims to enhance consumer and industry experiences by sharing a unified HarmonyOS ecosystem that includes programming languages, compilers, and tools, thereby constructing a comprehensive smart terminal operating system.

Huawei is also said to be advancing another significant vertical initiative: the native HarmonyOS. Currently, Huawei has successfully developed the entire stack of HarmonyOS as an independent Chinese-made operating system, contrasting with the majority of global operating systems such as Android and iOS, which are based on the Linux or Unix kernel.

Huawei’s recent strides not only shape the future of HarmonyOS and OpenHarmony but also bolster Huawei’s autonomy and control. These developments are crucial for China’s tech enterprises, providing resilience against potential US sanctions. Whether in consumer or industrial sectors, the Mega HarmonyOS can be activated promptly, underscoring why numerous Chinese companies are joining the HarmonyOS ecosystem.

The intense price competition among Chinese mature process foundries is nearing its end. According to a report from the Economic Daily News, it has indicated that Hua Hong Semiconductor, the second-largest foundry in China, plans to raise prices by 10% in the second half of the year.

This marks the end of a two-year decline in mature process foundry prices, signaling that the industry is emerging from its correction phase and moving towards a healthier path. Consequently, Taiwanese foundries specializing in mature processes, such as UMC, VIS, and PSMC, are also expected to see a rise in their prices, boosting their operations.

Industry sources cited in the same report also note that due to geopolitical factors, Chinese foundries primarily focus on the domestic market, which is gradually diverging from the customer base of Taiwanese foundries. However, if Hua Hong’s price increase materializes, it would be a significant indicator.

Since the end of the COVID-19 pandemic, mature process foundry prices have been continuously adjusting downward. A price increase would indicate a rebound in demand for consumer electronics.

Reportedly, the industry sources believe that if the market for mature process foundries rebounds, UMC will be the primary beneficiary. As demand for consumer electronics and mobile phones picks up, related products such as OLED panel driver ICs, image signal processors (ISP), and WiFi chip will see improvements in inventory levels across the computer, consumer, and communication sectors, reaching healthier levels.

VIS and PSMC are also expected to benefit from the industry’s recovery trend. Although VIS does not comment on pricing issues, the company previously mentioned that inventory levels for consumer electronics are expected to return to normal by 2024. Despite ongoing adjustments in industrial and automotive inventories, the company remains optimistic about moderate growth in the second half of the year.

PSMC is anticipated to experience a gradual return of orders as well. The company emphasizes its commitment to adapting to market competition and continuously adjusting its production and sales strategies. With the positive effects of these adjustments becoming evident and customer inventory levels returning to healthy standards, along with new business opportunities at the Tongluo plant, PSMC expects its revenue to gradually recover.

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• [News] UMC Optimistic About Second Half Business Outlook, While AI Could Capture 10-20% Market Share
• [News] Foundries Face Price Pressure in Mature Process Amid Oversupply, Indicating Q3 Price Decline
  

(Photo credit: UMC)

The US government’s CHIPS and Science Act is reportedly injecting funds into chip manufacturing at an unprecedented rate. According to a recent report by the U.S. Census Bureau, the growth rate of construction funding for computer and electrical manufacturing is remarkably high. The amount of money the government is pouring into this industry in 2024 alone is equivalent to the total of the previous 27 years combined.

Due to the substantial funding provided by the U.S. CHIPS Act, the construction industry in the United States is experiencing explosive growth. Companies such as TSMC, Intel, Samsung, and Micron have received billions of dollars to build new plants in the U.S.

Research by the Semiconductor Industry Association indicates that the U.S. will triple its domestic semiconductor manufacturing capacity by 2032. It is also projected that by the same year, the U.S. will produce 28% of the world’s advanced logic (below 10nm) manufacturing, surpassing the goal of producing 20% of the world’s advanced chips announced by U.S. Commerce Secretary Gina Raimondo. 

Currently, new plant constructions are underway. Despite the enormous expenditures, there have been delays in construction across the United States, affecting plants of Samsung, TSMC, and Intel.

Notably, a previous report from South Korean media BusinessKorea revealed Samsung has postponed the mass production timeline of the fab in Taylor, Texas, US from late 2024 to 2026. Similarly, a report from TechNews, which cited a research report from the Center for Security and Emerging Technology (CSET), noted the postponement of the production of two plants in Arizona, US. Additionally, Intel, as per a previous report from the Wall Street Journal (WSJ), was also said to be delaying the construction timetable for its chip-manufacturing project in Ohio.

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• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: TSMC)

After naming its new head for the semiconductor business in May, claiming to strengthen the company’s competitiveness in cutting-edge chips, Samsung has now disclosed its latest developments regarding AI chips. According to information from Reuters and Samsung’s press release, the company plans to provide one-stop solution for clients to expedite their production of AI chips, while its updated 2nm node with backside power delivery is expected to enter the market in 2027.

According to a report from Reuters, the semiconductor giant plans to provide a turn-key solution by integrating its leading services in memory chips, foundry, and chip packaging to capitalize on the AI surge. The production time needed for AI chips usually takes weeks, while under this scheme, it could potentially be reduced by approximately 20%.

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.

On the other hand, the tech heavyweight has introduced on 13^th June its latest developments on 2nm and GAA technologies, as tools to empower its AI solutions.

According to Samsung’s press release, its latest 2nm process, SF2Z, has incorporated optimized backside power delivery network (BSPDN) technology, which places power rails on the backside of the wafer to eliminate bottlenecks between the power and signal lines, and thus does better in PPA (power, performance and area), IR drop and performance of HPC designs compared to SF2, its first-generation 2nm node.

Samsung targets mass production for SF2Z in 2027, while SF4U, a high-value 4nm variant, is slated for mass production in 2025. It also confirms that preparations for SF1.4 (1.4nm) are progressing well, with performance and yield targets on track for mass production in 2027, the press release noted.

Regarding the progress on backside power delivery solution, TSMC’s Super PowerRail, which is expected to be used in A16 process, targets mass production in 2025. Intel’s PowerVia on its 20A process, on the other hand, is set for production in 2024.

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• [News] Gearing up for Backside Power Delivery: Heated Tech War Between TSMC, Intel, and Samsung

(Photo credit: Samsung)

Earlier, a report from a Japanese media outlet The Daily Industrial News indicated that memory giant Micron planned to build a new DRAM plant in Hiroshima, with construction scheduled to begin in early 2026 and aiming for completion of plant buildings and first tool-in by the end of 2027.

According to industry sources cited by TechNews, Micron is expected to invest between JPY 600 to 800 billion in the new facility, located adjacent to the existing Fab15 facility. Initially, the new plant will focus on DRAM production, excluding backend packaging and testing, with a capacity emphasis on HBM products.

Micron’s new Hiroshima plant will be the first to adopt Extreme Ultraviolet (EUV) lithography equipment, producing new advanced 1-Gamma process DRAM developed in collaboration between Taiwan and Japan. Subsequently, it will also transition to the 1-Delta process, leading to a significant increase in EUV tool-ins and heightened cleanroom facilities.

As for Fab 15 in Hiroshima, it serves as a mass production site for HBM, handling front-end wafer production and Through-Silicon Via (TSV) processes, while back-end stacking and testing processes are managed by the Taichung back-end plant in Taiwan. Market reports cited by TechNews also suggest that due to expanding demand for HBM, Micron’s facilities in Taiwan will commence HBM production and TSV processes starting next year.

TrendForce points out that due to robust growth in the HBM market, lower production yields, larger chip sizes, and other factors, producing the same bit output in HBM requires approximately three times the wafer input compared to DDR5, potentially squeezing traditional DRAM capacity.

Given Micron’s need to accelerate its penetration into the HBM market, and with its 2025 production capacity already fully booked by customers, the construction of a new plant becomes imperative. Micron also plans to maintain its HBM product line market share at 20% to 25% by 2025, eyeing on increasing it to match traditional DRAM levels.

The new Hiroshima plant has also received subsidies from the Japanese government. In October last year, Japan’s Ministry of Economy, Trade and Industry announced subsidies totaling JPY 192 billion for Micron’s construction and equipment expenses. Additionally, subsidies of up to JPY 8.87 billion for production costs and JPY 25 billion for research and development costs were provided.

Read more

• [News] Micron Reportedly Set to Build New DRAM Plant in Hiroshima, Japan, Operational Expected by End of 2027
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)