According to the expreview’s report, due to the surge in demand for AI applications and the market’s need for more powerful solutions, NVIDIA plans to shorten the release cycle of new products from the original 2 years to 1 year. Regarding its HBM partner, although validations for various samples are still in progress, market indications lean towards SK Hynix securing the ultimate HBM3e supply contract.

In a recent investor presentation, NVIDIA revealed its product roadmap, showcasing the data center plans for 2024 to 2025. The release time for the next-generation Blackwell architecture GPU has been moved up from Q4 2024 to the end of Q2 2024, with plans for the subsequent “X100” after its release in 2025.

Photo credit: NVIDIA

According to Business Korea, NVIDIA has already signed a prioritized supply agreement with SK Hynix for HBM3e, intended for the upcoming GPU B100.

While NVIDIA aims for a diversified supply chain, it has received HBM3e samples from Micron and Samsung for verification testing, and formal agreements are expected after successful validation. However, industry insiders anticipate that SK Hynix will likely secure the initial HBM3e supply contract, securing the largest share.

With this transaction, SK Hynix’s revenue for the fourth quarter of the 2023 fiscal year is poised to surpass KRW 10 trillion, marking a resurgence after a hiatus of 1 year and 3 months.

In the upcoming NVIDIA products scheduled for release next year, the newly added H200 and B100 will incorporate 6 and 8 HBM3e modules, respectively. As NVIDIA’s product line transitions to the next generation, the usage of HBM3e is expected to increase, contributing to SK Hynix’s profit potential.

SK Hynix is actively engaged in the development of HBM4, aiming to sustain its competitive edge by targeting completion by 2025.

TrendForce’s earlier research into the HBM market indicates that NVIDIA plans to diversify its HBM suppliers for more robust and efficient supply chain management. The progress of HBM3e, as outlined in the timeline below, shows that Micron provided its 8hi (24GB) samples to NVIDIA by the end of July, SK hynix in mid-August, and Samsung in early October.

Given the intricacy of the HBM verification process—estimated to take two quarters—TrendForce expects that some manufacturers might learn preliminary HBM3e results by the end of 2023. However, it’s generally anticipated that major manufacturers will have definite results by 1Q24. Notably, the outcomes will influence NVIDIA’s procurement decisions for 2024, as final evaluations are still underway.

(Photo credit: SK Hynix)

According to Chinatimes’ report, NVIDIA, the powerhouse in the AI domain, has recently announced recruitment initiatives in China, signaling an expansion of its autonomous driving team to propel the arrival of the AI-defined automotive era.

With a total of 25 positions across five departments, the focus is primarily on fields such as autonomous driving software, algorithms, and more, with job locations spanning Beijing, Shanghai, and Shenzhen.

The five departments open for recruitment at NVIDIA encompass the Autonomous Driving Software Group, Autonomous Driving Platform Group, System Integration and Testing Group, Map and Simulation Group, and the Product Group.

While each department has a varying number of open positions, the collective count reaches 25. Notably, within less than a day of posting the recruitment information on LinkedIn, NVIDIA has received over 100 resumes, indicating significant interest in the roles.

According to NVIDIA’s introduction, the mission of their autonomous driving team is to design, create, and deploy the safest and most advanced artificial intelligence-driven systems for automation and autonomous vehicles.

The scope of their work spans various modes of transportation, ranging from passenger cars to commercial vehicles and robot taxis. Safety is their top priority, whether it involves simultaneously training and testing AI in data centers or performing real-time data processing in vehicles.

NVIDIA asserts that as a leader in AI and accelerated computing, their autonomous driving solutions are global in scope. They aim to collaborate with automotive manufacturers to create value for users worldwide on the journey from L2 to L4 autonomy levels.

On the other hand, the team is led by Wu Xinzhou, who resigned from his position as Vice President of Autonomous Driving at XPeng Motors in August of this year.

Wu aspires for the Chinese autonomous driving team to become a core force propelling NVIDIA’s autonomous driving products to commercialization. He envisions leveraging China’s talent pool and experience to collaboratively create globally competitive autonomous driving products.

Wu also outlined specific requirements for prospective candidates, emphasizing the need for a solid professional background, strong self-motivation, a relentless pursuit of excellence in technology and product development, alignment with NVIDIA’s diverse work environment, and excellent communication skills to engage effectively with colleagues from different backgrounds.

(Photo credit: Nvidia)

TSMC’s Chairman, Mark Liu, recently addressed the challenges posed by global fragmentation and emerging national security concerns, which may potentially lead to a slowdown in global innovation. Despite these concerns, Liu emphasized Taiwan’s ability to respond calmly. TSMC remains committed to advancing its manufacturing processes and collaborates closely with clients to establish an open innovation platform.

On November 22th, Liu spoke at a lecture organized by Chinese National Association of Industry and Commerce, Taiwan (CNAIC), focusing on “TSMC in the AI Era,” as reported by the Central News Agency (CNA). During the lecture, Liu highlighted that Taiwan’s semiconductor industry, serving as a cornerstone, plays a vital role in driving advancements in AI applications.

However, he also acknowledged that the ongoing US-China chip war has brought global fragmentation and raised national security concerns, potentially slow down the pace of global innovation. Despite these challenges, Liu expressed confidence in Taiwan’s ability to handle them effectively.

In terms of  latest updates on TSMC’s global fabs, Liu mentioned positive communication with local unions in the US, showcasing TSMC’s ability to adapt and learn from new experiences. He also commended the high-quality and dedicated personality of Japanese engineers during his visit to Japan.

TSMC’s fab in Arizona, employing nearly 1,100 local staff, continues to recruit talents with plans for mass production to commence in 2025. The Kumamoto fab in Japan is expected to initiate production of 12nm, 16nm, 22nm, and 28nm processes by the end of the next year.

Regarding TSMC’s upcoming fab in Germany, the company aims to establish a specialized wafer fab focusing on automotive and industrial applications. This fab will produce 12nm, 16nm, 22nm, and 28nm processes, with construction set to begin in the second half of the next year and production slated for the end of 2027.

[News] TSMC’s Fab in Germany Progress Reports Potential Setback in Manager Selection?

Rise of Nvidia and other fabless companies, anticipating 10% growth in the next five years

Looking forward to the future tech landscape, Liu also anticipated Nvidia’s emergence as the world’s largest semiconductor company in 2023. From recent financial reports, Nvidia’s Q3 revenue reached USD 18.12 billion, surpassing TSMC’s USD 17.27 billion for the same quarter, as well as Intel’s USD 14.16 billion and Samsung Semiconductor’s USD 12.52 billion.

The rapid progress of Fabless companies also caught Liu’s eye. Fabless companies are expected to grow by around 10%, and IDMs by only 4% in the next five years. Additionally, he emphasized that semiconductor technology advances threefold every two years, projecting a 242-fold improvement over a decade.

What is “Fabless”?

Companies exclusively engaged in semiconductor design are referred to as “Fabless.” This term originates from the fact that these companies do not have their own fabrication. They are also known as “fabless semiconductor companies” due to their specialty of not owning production fab. Further categorization within fabless companies includes IC design and IP design.

Industry note that Nvidia’s growth as a fabless company is attributed to the surging demand for AI, including an optimized product portfolio. While Nvidia’s financial report mentioned geopolitical limitations and potential delays in H20’s launch, the company remains a global leader in AI computing. As for TSMC, it stands out as the most advanced pure-play foundry with its 3nm process, gradually increasing production in the second half of the year to alleviate inventory adjustment pressures within the rest of the 7nm family.
(Image: TSMC)

According to IJIWEI’s report, NVIDIA recently confirmed that it is actively working on new “compliant chips” tailored for the Chinese market. However, these products are not expected to make a substantial contribution to fourth-quarter revenue.

On November 21, during NVIDIA’s earnings briefing for the third quarter of 2024, executives acknowledged the significant impact of tightened U.S. export controls on AI. They anticipated a significant decline in data center revenue from China and other affected countries/regions in the fourth quarter. The controls were noted to have a clear negative impact on NVIDIA’s business in China, and this effect is expected to persist in the long term.

NVIDIA’s Chief Financial Officer, Colette Kress, also noted that the company anticipates a significant decline in sales in China and the Middle East during the fourth quarter of the 2024 fiscal year. However, she expressed confidence that robust growth in other regions would be sufficient to offset this decline.

Kress mentioned that NVIDIA is collaborating with some customers in China and the Middle East to obtain U.S. government approval for selling high-performance products. Simultaneously, NVIDIA is attempting to develop new data center products that comply with U.S. government policies and do not require licenses. However, the impact of these products on fourth-quarter sales is not expected to materialize immediately.

Previous reports suggested that NVIDIA has developed the latest series of computational chips, including HGX H20, L20 PCIe, and L2 PCIe, specifically designed for the Chinese market. These chips are modified versions of H100, ensuring compliance with relevant U.S. regulations.

As of now, Chinese domestic manufacturers have not received samples of H20, and they may not be available until the end of this month or mid-next month at the earliest. IJIWEI’s report has indicated that insiders have revealed the possibility of further policy modifications by the U.S., a factor that NVIDIA is likely taking into consideration.

Read more

• [News] NVIDIA Rumored to Downgrade AI Chips for China Amid U.S. Restrictions, Year-End Mass Production Expected

(Photo credit: Nvidia)

According to TechNews’ report, there are recent rumors indicating that AMD’s next-generation chip, with the Zen5C architecture codenamed “Prometheus,” will adopt a “Dual Foundry Mode.” This means it will simultaneously utilize TSMC’s 3nm and Samsung’s 4nm processes. This move suggests that AMD aims to diversify chip manufacturing, avoiding reliance solely on TSMC for its upcoming products.

Industry sources suggest that factors such as geopolitical considerations, negotiation tactics, and the overall semiconductor manufacturing ecosystem drive the search for secondary sources. AMD’s decision to employ a dual foundry approach is likely a strategic move to mitigate risks in this dynamic landscape.

Reportedly, Samsung’s 4nm process will primarily be utilized for the base version of Prometheus, while TSMC’s 3nm process will be employed for the high-end variant of Prometheus.

EXTREMETECH finds AMD’s move intriguing, speculating that it might stem from uncertainty about sourcing all chips exclusively from TSMC. This is significant for Samsung, historically excluded from the consumer tech and gaming sector. Since NVIDIA switched from Samsung to TSMC for the production of Ampere GPUs using the 8nm process, Samsung has been left out of the equation.

If the collaboration between AMD and Samsung proves successful, other companies may also consider shifting to Samsung. Reports suggest that AMD’s choice of Samsung’s 4nm process over the 3nm process could be attributed to potential yield challenges.

While it’s uncertain whether AMD will indeed implement the “Dual Foundry Mode,” the anticipation for the Zen5 architecture next year is high. Samsung is currently ahead of the industry in the adoption of GAA (Gate-All-Around) technology for its manufacturing processes, introducing GAA technology with their 3nm process ahead of others in the industry. TSMC, on the other hand, is anticipated making a similar change no earlier than 2025.

Read more

• [News] A battle on 4nm: AMD Teams Up with Samsung, while Google Weighs Supplier Split

(Photo credit: AMD)