According to reports from the Commercial Times, the PC chip supply chain has seen a surge in activity as government subsidies in mainland China have expanded to cover major cities. This has prompted brands to increase their orders, boosting short-term demand for the current quarter. Related IC design companies are expected to benefit from this trend.

The report reveals that the supply chain is responding to the rollout of home appliance subsidies in China, which initially covered only select cities. As other regions follow suit, demand for replacement and upgrades has surged, prompting brands to increase their stock, leading to more orders for IC suppliers.

However, some IC companies remain cautious, believing that the current demand surge may simply be pulling forward orders that would have been placed in the first quarter of next year. Since the subsidies end by the close of this year, they fear this could lead to a short-lived boom.

On the other hand, more optimistic players believe that as major IC manufacturers like AMD, Qualcomm, and Intel roll out NPUs with over 40 TOPS of computing power, combined with post-pandemic replacement demand, the market will see a significant boost. These companies are also expected to launch products at various price points, making AI-powered PCs more affordable in the coming year.

The report also noted that the PC market is expected to become more competitive as both x86 and Arm architectures begin supporting new AI applications. It is understood that some companies will start purchasing Arm-based PCs next year, signifying that Arm-based PCs have successfully entered the commercial sector, which will have a positive impact on building a complete ecosystem in the future.

Industry sources cited by the Commercial Times believe Qualcomm will be the first to benefit, while MediaTek is gearing up, with its chips expected to debut in the second quarter of next year and enter mass production in the third quarter.

(Photo credit: Samsung)

In early August, Taiwanese IC design giant MediaTek revealed its plan to unveil the Dimensity 9400 flagship series in October, designed to support most large language models on the market. Now more details regarding MediaTek’s ambition in AI have surfaced, as reports from Wccftech and Chinese media MyDrivers note that the company teams up with NVIDIA, targeting to launch their AI PC chip in the first half of 2025.

The reports indicate that the chip is currently in the design phase, with verification and sampling anticipated next quarter.

TrendForce projects that the Arm chip co-developed by MediaTek and NVIDIA, with adoption of Wi-Fi 7 and 5G, is slated to occupy a spot in the AI NB market since 2Q25, and initiate a new wave of technical innovation after 2025.

According to Wccftech, rumors about a custom chip from MediaTek for the AI PC market have been circulating for a while, and the excitement of the market skyrocketed when NVIDIA is reportedly joining the development.

The AI PC SoC is said to confront Qualcomm’s Snapdragon X Elite series. Wccftech suggests that the chip will be manufactured using TSMC’s 3nm node, based on ARM architecture.

With AI giant NVIDIA involved, the SoC is also likely to achieve breakthroughs in the integrated graphics arena, the report says. In addition, the report also notes that given MediaTek’s expertise in creating power-efficient mobile chips like the Dimensity 9400, the company may be well-equipped to develop a chip for the AI PC segment that delivers both strong performance and impressive efficiency.

MediaTek and NVIDIA are also collaborating on automotive chips, with plans to launch their first chip in early 2025. MediaTek CEO Rick Tsai mentioned earlier that though details are yet to be disclosed, significant advancements in the automotive sector are expected between 2027 and 2028.

Read more

• [News] MediaTek Ventures into AI Accelerators, Aiming to Release Dimensity 9400 in October
• Penetration Rate of AI NBs to Arrive at 20% by 2025 as AI Applications Steadily Refine and Actuate Consumer Demand, Says TrendForce 

(Photo credit: MediaTek)

According to a report from Economic Daily News, Innolux President James Yang announced on August 5 that the company is advancing its semiconductor fan-out panel-level packaging (FOPLP) with three key processes, targeting to enter mass production as soon as year-end.

The chip-first process technology, set to be the first to reach mass production by the end of this year, is expected to significantly contribute to revenue by the first quarter of next year.

Additionally, the RDL-first process, which target mid-to-high-end products, is anticipated to enter mass production within one to two years. The most technically challenging Through-Glass Via (TGV) process, being developed in collaboration with partners, will require another two to three years before it can be mass-produced.

At yesterday’s earnings call, there was significant interest in whether Innolux’s 4th Plant in Tainan (5.5-generation LCD panel plant) would be sold to Micron or TSMC.

Innolux Chairman Jim Hung stated that, in addition to quantifying the value of the sale, it is also important to consider the qualitative aspect, such as the potential new business opportunities that the deal could bring for both parties.

He further pointed out that while 5.5-generation plants are not the most competitive in the panel industry, they could still be valuable to other manufacturers. The sale of this asset is expected to contribute to Innolux’s non-operating income.

Regarding the recent focus on FOPLP (Fan-Out Panel-Level Packaging) mass production progress, Jim Hung emphasized that Innolux’s technology is already prepared.

James Yang explained that Innolux’s panel-level fan-out packaging technology will initially be applied to mid-to-low-end products, with plans to later expand into mid-to-high-end products.

He added that by entering the FOPLP field, Innolux aims for this technology to become a part of the AI PC industry, viewing the asset disposal as an opportunity to develop new business models and collaborations.

Previously reported by Economic Daily News, Innolux has been promoting the transformation of its fully depreciated old plants. The 3.5-generation line at the Tainan facility has been repurposed for advanced packaging with FOPLP, and the 4-generation line has been converted to produce X-ray sensors (through Raystar Optronics), both of which are related to semiconductor products.

Read more

• [News] Innolux Confirms Sale of Tainan Plant 4, with Micron & TSMC Reportedly in the Bidding Stage
• [News] Venturing into AI, Innolux Reportedly Partners with Memory Giants, While Its 4th Plant in Tainan to Focus on Packaging Applications

(Photo credit: Innolux)

According to a report from Reuters on July 4, consensus from 27 analysts compiled by LSEG SmartEstimate indicates that driven by the surge in demand for AI technology and the resulting rebound in memory prices, Samsung Electronics’ operating profit for Q2 2024 (ending June 30) is projected to skyrocket by 1,213% from KRW 670 billion in the same period last year to KRW 8.8 trillion (roughly USD 6.34 billion), marking the highest since Q3 2022.

Other memory giants are also optimistic about the operation afterwards. Take Micron as an example. Regarding the AI frenzy, Micron CEO Sanjay Mehrotra claimed that in the data center sector, rapidly growing AI demand enabled the company to grow its revenue by over 50% on a sequential basis.”

Mehrotra is also confident that Micron can deliver a substantial revenue record in fiscal 2025, with significantly improved profitability underpinned by our ongoing portfolio shift to higher-margin products.

On the other hand, SK Group also stated that by 2026, the group will invest KRW 80 trillion in AI and semiconductors, while continuing to streamline its businesses to increase profitability and return value to shareholders.

Read more

• [News] SK Hynix to Invest USD 75 Billion in AI Push, with 80% of It Flooding into HBM
• [News] Memory Giant Micron’s 3Q24 Earnings Report Released, Outlook Slightly Better Than Expected

(Photo credit: Samsung)

According to sources cited in a report from Reuters, it’s said that IC design giant MediaTek is developing an ARM-based PC chip that will run Microsoft’s Windows operating system.

Last month, Microsoft unveiled a new generation of laptops featuring ARM-based chips, which provide sufficient computing power to run AI applications. Its executives stated that this represents the future trend of consumer computing. MediaTek’s latest development of an ARM-based PC chip is said to be geared toward these types of laptops.

The same report indicates that Microsoft’s move plans to take aim at Apple, which has been using ARM-based chips in its Mac computers for about four years. Microsoft’s decision to optimize Windows using ARM-based chips could further pose a threat to Intel’s long-standing dominance in the PC market.

Regarding this matter, both MediaTek and Microsoft declined to comment.

Reportedly, according to industry sources, MediaTek’s PC chip is scheduled to launch by the end of next year, coinciding with the expiration of Qualcomm’s exclusive agreement to supply chips for laptops. MediaTek’s chip, based on ARM’s existing designs, will significantly accelerate the development process by less design work.

It is currently unclear whether Microsoft has approved MediaTek’s PC chip for supporting the Copilot+ feature in Windows programs.

ARM executives have stated that one of their clients used ready-made components to complete a chip design in about nine months, although this client was not MediaTek. For experienced chip designers, creating and testing advanced chips typically takes more than a year, depending on the complexity.

In the latest press release from TrendForce, MediaTek’s strategy in the PC domain is also highlighted. Reportedly, the Arm chip co-developed by MediaTek and NVIDIA, with adoption of Wi-Fi 7 and 5G, is also slated to occupy a spot in the AI NB market since 2Q25, and initiate a new wave of technical innovation after 2025. According to TrendForce’s forecast, Arm chips are likely to surpass 20% in market penetration at an accelerated velocity in 2025.

Read more

• [News] MediaTek Reportedly Partners with Meta, Entering the Battleground of AI against Apple and Qualcomm
• [News] MediaTek Announces 4nm Dimensity 7300 Series Chips, Supporting Foldable Devices

(Photo credit: MediaTek)