Facing increased market demand and the ongoing recovery of the memory industry, a report from Korean media outlet ETNews has reported that Samsung has confirmed its investment plan for the 6th-Generation DRAM production line at the Pyeongtaek P4 plant, with the goal of starting mass production in June 2025.

Reportedly, the 6th-generation DRAM, known as ‘1c ,’ is a next-generation DRAM utilizing 10nm-class technology. Despite it is said to be a product that has not yet been commercialized in the global semiconductor industry, both Samsung Electronics and SK hynix are already preparing for mass production.

Samsung’s Pyeongtaek P4 is a comprehensive semiconductor production center, divided into four phases.

As per ETNews, Samsung plans to initiate 1c DRAM production by the end of this year. The company is said to be considering launching HBM4 using 1c DRAM in the second half of 2025.

Given that HBM consumes significantly more DRAM than traditional memory, it is speculated by the report that Samsung’s construction of the 1c DRAM production line at the Pyeongtaek P4 plant may also be in preparation for HBM4.

As per TrendForce’s latest report on the memory industry, it’s revealed that DRAM and NAND Flash revenues are expected to see significant increases of 75% and 77%, respectively, in 2024, driven by increased bit demand, an improved supply-demand structure, and the rise of high-value products like HBM.

Furthermore, TrendForce also reports that Samsung’s P4L facility will be the key site for expanding memory capacity starting in 2025, starting with NAND production. Equipment installation for DRAM is expected to begin in mid-2025, with mass production of 1c nanometer DRAM slated to commence in 2026.

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• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4
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(Photo credit: Samsung)

According to a report by Nikkei, Japanese chip manufacturer Rapidus plans to establish a fully automated production line using robots and AI in northern Japan to produce 2nm chips for advanced AI applications, with mass production anticipated as early as 2027.

Reportedly, Rapidus claims that automated production will significantly accelerate production times, reducing chip delivery time to just one-third of that of its competitors. The company’s fab is expected to complete its external structure by October, with EUV lithography system set to arrive in December.

Compared to other companies already operating fabs, building a fully automated plant could give Rapidus a significant advantage. While the front-end of chip manufacturing are already highly automated, the back-end processes, such as packaging and testing, remain labor-intensive.

Rapidus CEO Atsuyoshi Koike stated that this approach will deliver higher performance and faster turnaround times for the same 2nm products compared to other competing chipmakers.

Per a report from Tom’s Hardware, Rapidus is currently two years behind TSMC and Samsung, both of which are expected to begin 2nm chip production in 2025. If Rapidus can deliver chips faster without compromising on price or quality, it may secure a place in the market.

Despite the optimistic outlook, Rapidus faces operational challenges. The company revealed that it will need JPY 2 trillion (approximately USD 14 billion) to begin operation in 2025, and at least JPY 5 trillion in total for the start of mass production.

Although Rapidus has received JPY 920 billion in subsidies from the Japanese government, private companies remain hesitant to invest due to the company’s lack of track record.

Atsuyoshi Koike added that, given the current situation, it is difficult for Rapidus to secure private financing. The company is discussing ways to make financing easier, such as implementing a government loan guarantee system.

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• [News] Japanese Government Reportedly Plans to Offer Guaranteed Loans to Chip Startup Rapidus
• [News] Rapidus Partners RISC-V Player Esperanto, Targeting Low-Power AI Chip

(Photo credit: Rapidus)

In spite of its skyrocketing profit in Q2 thanks to the strong AI demand for memory chips, Samsung Electronics might be still struggling with losses in its foundry business, according to reports by ijiwei and Technews.

Citing Korean media, the reports indicate that Samsung’s foundry business is expected to face operating losses amounting to several trillion Korean won in 2024. The reports note that one of Samsung’s major challenges may lie in securing major foundry clients, as improving its yield rates and technologies in advanced nodes remains the company’s top priority.

Samsung posted better-than-expected revenue and profit numbers in Q2, as its revenue grew 23% YoY to 74.07 trillion won (USD 53.45 billion). Its operating profit, on the other hand, soared 1,462% YoY to 10.44 trillion won. However, the semiconductor giant didn’t disclose individual data for the foundry and LSI businesses respectively, but only providing the performance of the Device Solutions (DS) division as a whole.

In its press release, Samsung attributed the robust Q2 performance of its DS division to the market recovery driven by HBM, conventional DRAM and server SSDs. The move has brought up concerns on whether the foundry business is still grappling with losses.

The reports, citing Korean sources, indicate that Samsung’s semiconductor business (excluding the memory division) might have suffered a loss of nearly 300 billion won during the quarter. In addition, Samsung Securities predicts that the non-memory division recorded an operating loss as much as 457 billion won.

An earlier report by Business Korea noted that as the demand for 3nm has been rising, big techs, including NVIDIA, AMD, Qualcomm, MediaTek, Apple and Google, tend to allocate their orders to TSMC. Even Intel’s Lunar Lake, which is expected to make debut in September, is said to be manufactured with TSMC’s 3nm. The strong demand has reportedly prompted TSMC to raise the price of its 3nm process by over 20%.

Thus, the reports by ijiwei and Technews suggest that Samsung’s top priority would be to attract major clients for its foundry business. If Samsung can improve the yield rate of its 3nm GAA (Gate-All-Around) technology in a timely manner, it could potentially increase its order volume and market share by offering more competitive pricing.

On the other hand, the reports note that Samsung’s foundry business needs to shift its focus from the smartphone sector to the high-performance computing (HPC) segment, which means Samsung will need to apply technologies such as Backside Power Delivery Network (BSPDN) to enhance product performance and competitiveness. In response, Samsung plans to introduce BSPDN technology potentially ahead of schedule, aiming to boost its competitiveness when it begins mass production of its 2nm process technology in 2025.

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• [News] Samsung to Intensify Efforts for Capturing Intel’s Advanced Packaging Orders Shifting from TSMC
• TrendForce: Top 10 Global Foundries at 4.3% QoQ Drop in 1Q24 Revenue as SMIC Climbed to 3rd Spot

(Photo credit: Samsung)

As September draws closer and iPhone 16’s release date is nearing, suppliers have been ramping up their production of iPhone 16 OLED panels in preparation. According to the reports by ETNews and MacRumors, Samsung Display and LG Display started initial production of iPhone 16 OLED panels as early as in June, and have substantially boosted production over the past month.

ETnews notes that Apple is forecasting shipments of approximately 90 million iPhone 16 units this year, while the production of OLED panels is estimated to be around 30% higher, totaling about 120 million units.

Among them, Samsung is said to have the lion’s share by supplying around 80 million OLED panels by the end of this year, while LGD is projected to provide approximately 43 million panels, according to ETnews. Both companies are on track to meet these production targets.

The reports states that the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max will have a design similar to the iPhone 15 models, but Apple is increasing the sizes of the iPhone 16 Pro and iPhone 16 Pro Max.

The iPhone 16 Pro will feature a 6.3-inch display, up from 6.1 inches, while the iPhone 16 Pro Max will have a 6.9-inch display, an increase from 6.7 inches. The display sizes for the standard iPhone 16 models will remain unchanged, with the iPhone 16 maintaining a 6.1-inch display and the iPhone 16 Plus featuring a 6.7-inch display.

Earlier in May, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from The Elec. Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels.

It seems that Apple tends to release more OLED orders to LGD and counts on it to be a solid second supplier. Another report by The Elec reveals that Apple is likely to use LGD as the second supplier for the OLED screens of next year’s iPhone SE 4. The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE.

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• [News] Apple May Choose LGD as Second Supplier for iPhone SE 4 OLED
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(Photo credit Apple)

According to a report from The Chosun Daily, major tech companies like NVIDIA are considering using Intel’s foundry services (IFS) as an alternative due to TSMC’s packaging capacity shortages. While packaging is a core competency for semiconductor foundries, Samsung, which is facing difficulties in attracting customers, will need to exert maximum effort to secure orders.

It’s highlighted by the report that the demand for AI accelerators is growing rapidly, but TSMC’s AI chip production capacity is unable to keep up.

Furthermore, per The Chosun Daily citing sources, major clients like NVIDIA and Apple have secured TSMC’s 3nm advanced process capacity, pushing order backlogs into 2026.

Therefore, major tech companies seeking alternatives are turning to Intel’s IFS. Since Intel’s Foveros is said to be comparable to TSMC’s CoWoS-S, it has made Intel’s advanced packaging a viable option to ensure supply.

TSMC and Intel offer advanced packaging services to customers under the names CoWoS and Foveros, respectively. Both CoWoS and Foveros are advanced packaging technologies that connect two or more semiconductor chips on a wafer and then place them onto a packaging substrate.

Reportedly, in addition to NVIDIA and Microsoft, Amazon and Cisco are considering outsourcing to Intel Foundry to reduce their dependence on TSMC.

The report further emphasizes that this market trend is likely to cause anxiety for Samsung, which competes with TSMC and Intel in advanced processes.

Recently, Samsung’s former clients, Google and Qualcomm, have chosen TSMC, while Intel, seen as a latecomer, is catching up by securing advanced packaging orders from major tech companies, potentially narrowing the gap with Samsung.

Kim Hak-sung, head of Hanyang Institute of Smart Semiconductor, said that packaging is a technology that critically influences customer acquisition in the AI semiconductor era, where various types of chips are interconnected.

He noted that although there may not be a substantial technical capabilities difference between Samsung Electronics and Intel, as mass production experience allows the process to stabilize and become more appealing to customers.

Kim eventually addressed that to stay competitive, Samsung needs to focus on capturing the volumes that TSMC cannot accommodate, positioning itself ahead of Intel.

Read more

• [News] TSMC Reportedly to Raise 3nm & 5nm Prices Soon, Looking to Maintain Long-Term Profit Margins 
• [News] Major Clients Reportedly Fully Allocate TSMC’s Production Capacity Until 2026, 3nm Process in High Demand
  

(Photo credit: Samsung)