At its earnings call on August 14th, Taiwanese tech giant Foxconn addressed the progress of the highly anticipated launch of NVIDIA’s next-generation AI server, the GB200.

According to a report by Commercial Times, Foxconn confirmed that the development of the server cabinets is on schedule, and the company will be among the first suppliers to deliver, with shipments expected to begin in the fourth quarter. The company also expects significant growth throughout the year, driven by strong demand for AI servers.

Addressing concerns about the progress of its AI server business, Foxconn spokesperson James Wu stated that driven by strong customer demand, the company’s AI server revenue grew by more than 60% quarter-over-quarter in Q2, accounting for over 40% of its total server revenue.

Wu reaffirmed that the robust demand for AI servers is expected to continue, and the company maintains its forecast that AI servers will contribute 40% of its total server revenue for the year.

Additionally, Foxconn has observed strong demand from various types of customers for the new generation of AI cabinet solutions, which is expected to significantly contribute to its server revenue in 2025.

Previously, per a report from The Information, NVIDIA’s GB200 is said to be experiencing yield issues, leading to a one-quarter delay in mass shipments. When asked about potential delays in the shipment of GB200 AI servers, Wu responded that the development timeline for the GB200 cabinets is on schedule.

In the second quarter, Foxconn reported revenue of NTD 1.55 trillion (roughly USD 48 billion), with a gross margin of 6.37% and earnings per share (EPS) of NTD 2.53.

For the first half of the year, its revenue reached NTD 2.87 trillion (roughly USD 88.9 billion), marking a 4% year-over-year increase. Gross margin, operating margin, and net profit margin were 6.37%, 2.83%, and 1.98%, respectively, all showing improvements compared to the same period last year, which stood at 6.21%, 2.58%, and 1.66%.

Cumulative EPS for the first half was NTD 4.12. Looking ahead to the third quarter, Foxconn expects operations to gain momentum as they enter the traditional peak season, with both quarter-over-quarter and year-over-year growth anticipated.

Read more

• [News] Foxconn Remains Unfazed Despite NVIDIA’s GB200 Delay, with Customers Aim to Secure Their Orders
• [News] GB200 AI Servers Generate USD 210 Billion Annual Revenue, Boosting Supply Chain Growth

(Photo credit: Foxconn)

Samsung Electronics, which has been struggling at the final stage of its HBM3e qualification with NVIDIA, may unexpectedly emerge as the pacemaker for the AI ecosystem, as the company may somehow ease the cost pressure for building AI servers by balancing the market, as well as alleviating the tight HBM supply, according to a recent report by Korean media outlet Invest Chosun.

Samsung, in its second quarter earnings call, has confirmed that the company’s fifth-generation 8-layer HBM3e is undergoing customer valuation. The product is reportedly to enter mass production as soon as the third quarter.

Invest Chosun analyzes that while there is growing anticipation that NVIDIA could come up with a conclusion regarding Samsung’s HBM3e verification, the market’s attitude towards AI has also been gradually shifting in the meantime, as the main concern now is that semiconductors are becoming too expensive.

The report, citing remarks from a consultant, notes that the price of an NVIDIA chip may cost tens of thousands of dollars each, leading to concerns that the industry’s overall investment capex cycle might not last more than three years.

In addition, the report highlights that the cost of building an AI server for learning is about 40 times that of a standard server, with over 80% attributed to NVIDIA’s AI accelerators. Due to the cost pressure, big techs have been closely examining the cost structure for building AI servers.

Therefore, NVIDIA has to take its customers’ budgets into consideration when planning its roadmap. The move has also sparked speculation that NVIDIA, which is prompted to lower product prices, might compromise to bring Samsung onboard as an HBM3e supplier, the report states.

Citing an industry insider, the report highlights the dilemma of NVIDIA and its HBM suppliers. As the AI giant tries to shorten its product cycle, releasing the Blackwell (B100) series just two years after the Hopper (H100), HBM suppliers have been struggling except for SK hynix, as the company is the only one with the most experience.

If Samsung doesn’t join the HBM lineup, the overall supply of NVIDIA’s AI accelerators could be limited, driving prices even higher, the report suggests.

Under this backdrop, Samsung may have taken on the role of pacemaker in the AI semiconductor market, as it may help balance the market during a time when there are concerns about overheating in the AI industry. Also, if it is able to form a strong collaboration with NVIDIA by supplying 8-layer HBM3e, its technological gap with competitors will noticeably narrow.

TrendForce notes that Samsung’s recent progress on HBM3e qualification seems to be solid, and we can soon expect both 8hi and 12hi to be qualified in the near future. The company is eager to gain higher HBM market share from SK hynix so its 1alpha capacity has reserved for HBM3e. TrendForce believes that Samsung is going to be a very important supplier on HBM category.

Read more

• [News] Samsung’s 8-layer HBM3e to Start Mass Production in Q3, Driving HBM Sales to Soar 3-5 Times in 2H24
• [News] Battle between Memory Giants Heats up in 2H24 as Samsung and SK hynix Advance in HBM3/ HBM3e

(Photo credit: Samsung)

After announcing reductions in capital expenditures, massive layoffs, and the suspension of dividends, according to a report from Reuters, Intel is focusing on increasing its cash reserves to sustain company operations. The same report also indicates that Intel has sold off its entire stake in the intellectual property company Arm.

Per another report by wccftech, based on Intel’s Form 13-F filed with the U.S. Securities and Exchange Commission (SEC), the company has disposed of its entire stake in Arm Holdings, totaling 1.18 million shares. Reuters further reported that through this sale, Intel would have raised approximately USD 146.7 million.

Despite selling its shares in Arm, Intel has retained its holdings in companies like Astera Labs, Joby Aviation, MariaDB, and Senti Biosciences. Yet, as per the same report from wccftech, these investments have yet yielded significant returns, with Intel currently experiencing a cumulative loss of USD 120 million on them in Q2.

At that time, Intel CEO Pat Gelsinger pointed out that Intel must align its cost structure with the latest operational model and fundamentally change the way the company operates. He indicated that Intel’s revenue growth has not met expectations and has not yet benefited from powerful trends such as AI.

Read more

• [News] Intel’s Earnings Fall Short, Cutting Over 15% of Workforce
• [News] Intel Suspended Investment in French and Italian Chip Plants

(Photo credit: Intel)

According to a report from The Wall Street Journal citing sources on August 13th, it’s revealed that Chinese internet companies and telecom operators have been testing Huawei’s latest processor, the “Ascend 910C,” in recent weeks. Reportedly, Huawei has informed potential customers that this new chip is comparable to NVIDIA’s H100 GPU, which cannot be directly sold in China.

Huawei’s ability to continue advancing its chip technology is a sign of its efforts to counter U.S. sanctions. However, the report also indicated that Huawei is already experiencing production delays with its current chips. The company faces additional U.S. restrictions, limiting its access to parts for production equipment and the latest memory used in AI hardware.

The sources cited by the same report point out that, TikTok’s parent company ByteDance, search giant Baidu, and state-owned telecom operator China Mobile are in preliminary talks with Huawei to secure the Ascend 910C chip. These negotiations suggest that Huawei could secure orders for more than 70,000 chips, valued at approximately USD 2 billion.

Reportedly, Huawei aims to begin shipping the Ascend 910C in October, but the final delivery schedule might differ from the initial plan and could be subject to adjustments.

Under U.S. sanctions, customers in China are forced to purchase the H20 from NVIDIA, which is a “downgraded” version of the AI chip designed specifically for the Chinese market.

Per a previous report from South China Morning Post, it’s expected that Chinese tech giants may be considering a shift towards local AI products, which could pose a challenge to NVIDIA. Currently, China accounts for 17% of NVIDIA’s revenue in the 2024 fiscal year, making the competition in the Chinese market increasingly fierce for NVIDIA.

Compared to NVIDIA’s customers in China, NVIDIA’s U.S. customers, such as OpenAI, Amazon, and Google, will soon have access to NVIDIA’s latest Blackwell architecture chips, including new products like the GB200, which NVIDIA claims offer significantly improved performance compared to existing products.

Meanwhile,  Wall Street Journal also has cited sources, pointed out that NVIDIA is working on another China-oriented chip called B20, but the design might have trouble getting U.S. approval for China export if the regulations are further tighten.

Read more

• [News] NVIDIA Reportedly Developing Tailored Version of the Blackwell Series for Chinese Market
• [News] U.S. Reportedly Enhancing Chip Export Restrictions to China, while NVIDIA’s H20 Might Get Banned

(Photo credit: NVIDIA)

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)