Recent revelations from South Korean source yeux1122 indicate that LG Display (LGD) holds a higher share than Samsung Display in the supply of OLED screens for Apple’s new iPad Pro.

The leak suggests that LGD is planning to commence mass production of OLED screens for Apple’s iPad Pro in February 2024, with an estimated annual output ranging from 6.2 to 6.5 million screens.

Currently, Apple’s iPad Pro series products utilize LCD and mini-LED display screens. However, it is anticipated that in 2024, Apple will introduce an OLED version of the iPad Pro.

The leak also indicates that LGD has taken the lead by deploying a two-stack tandem structure and excelling in the supply of organic material devices compared to the Samsung camp.

On the other hand, Samsung faced several yield-related challenges during the supply process, but most of these issues have now been officially resolved. The initial estimate suggests that Samsung will supply around 4 million screens to Apple.

In fact, according to other industry sources, Apple already began discussions with two major suppliers, Samsung and LGD, regarding the OLED version supply for the iPad approximately 2-3 years ago, and set LGD’s supply volume to be larger than that of Samsung.

For the upcoming OLED iPad Pro models, the screen sizes are expected to slightly increase to 11 inches and 13 inches, with Wi-Fi and 5G models having the codenames J717, J718, J720, and J721.

Another rumor has previously revealed that the next iPad Pro, which is set to come out in 2024 as per the report, may support MagSafe wireless charging. The prototype has a glass Apple logo on the back, while the rest of the back remains aluminum. This design allows power to be transmitted through the glass logo without affecting the durability of the iPad.

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(Photo credit: Apple)

Examining the dynamics of advanced semiconductor manufacturing, from research and development to the competition for cutting-edge equipment and securing orders, major players such as TSMC, Samsung, and Intel are constantly in action. Simultaneously, newcomer Rapidus is making a strong entrance. The competition for advanced processes is set to intensify in 2024.

Amidst the global chipmakers’ race to develop 2-nanometer processes, TSMC has once again emerged victorious by securing Apple’s order. The upcoming iPhone 17 Pro, expected to be released in 2025, reportedly will feature TSMC’s 2-nanometer chip. Samsung is also gearing up to launch a 2nm prototype in 2024, reportedly offering discounted prices with the aim of attracting customers such as NVIDIA.

However, industry insiders reveal that TSMC is on the verge of finalizing its clients for future 3nm and 2nm technologies, apart from Apple, AMD, NVIDIA, Broadcom, MediaTek, and Qualcomm are among the clients for TSMC’s 3nm and 2nm processes. The changes in the customer portfolio of TSMC, Samsung, and Intel in 2024 are bound to be the focal point throughout the year.

(Image: TSMC)

Amidst geopolitical influences, governments worldwide are enticing semiconductor manufacturers with subsidy policies, prompting chip manufactures to establish themselves in various regions. The ongoing dynamics of semiconductor facility construction and the evolving global production capacity remain focal points for the industry in 2024.

Following TSMC’s establishment of facilities in Arizona, USA, and Kumamoto, Japan, the progress of TSMC’s second Kumamoto plant has garnered significant industry attention. On another front, the developments at TSMC’s ESMC facility in Germany continue to capture global attention within the semiconductor industry.

Powerchip Semiconductor Corporation (PSMC) also made headlines in 2023 by announcing the construction of its first overseas 12-inch fab, JSMC, located in Sendai City, Miyagi Prefecture, Japan.

Meanwhile, Samsung’s overseas expansion efforts are equally robust. In addition to its Taylor plant in the United States, Samsung plans to establish a new semiconductor packaging research center in Japan.

According to TrendForce data, considering an equivalent foundry capacity of 12 inches, Taiwan held a global market share of approximately 47% in 2023, followed by China at 26%, South Korea at 12%, the United States at 6%, Singapore at 4%, Japan at 2%, Germany at 1%, and others at 2%. By 2027, Taiwan’s market share is projected to decrease to 42%, with China at 28%, South Korea at 10%, the United States at 7%, Singapore at 6%, Japan at 3%, Germany at 2%, and others at 1%.

(Image: TSMC)

After a rebound from the decline in NAND prices, the current quotations still show a gap from reaching the breakeven point for suppliers such as Samsung, Kioxia, SK Hynix, and Micron.

Major domestic players in the NAND Flash industry indicate that NAND Flash suppliers, driven by the goal of profitability, will continue to aggressively raise prices. It is anticipated that prices will need to increase by over 40% once again for major manufacturers to break even. To achieve profitability, future price hikes are expected to be at least 50% or even higher, according to Economic Daily News.

Looking at the global NAND Flash market share in 3Q23, according to a report from TrendForce, Samsung holds the leading position with a market share of 31.4%. The second position is held by the SK group, with a market share of 20.2%, followed by the U.S.-based Western Digital at third place with a market share of 16.9%. The Japanese company, Kioxia ranks fourth with a market share of approximately 14.5%.

The industry indicates that due to the lower profitability of NAND Flash compared to DRAM, international giants are actively reducing NAND Flash production.

Taking Samsung as an example, since September of this year, the reduction in NAND chip production has expanded to 50% of total capacity, focusing on products with stacked layers up to 128 layers. The goal is to accelerate destocking and stabilize prices, with plans to gradually increase prices in 2024.

TrendForce has indicated that following Samsung’s expansion of the production reduction to 50%, other suppliers are also maintaining a restrained wafer allocation strategy. After more than half a year of production reduction in some processes and capacities, there is a structural supply shortage, providing an advantage for chip manufacturers in price control. Observing the market in the fourth quarter, there are almost no low-priced sources available for purchase. However, buyers still tend to maintain high inventory levels and continue purchasing.

Industry sources revealed that the NAND chip prices had plummeted too deeply before. Although the quarterly increase in contract prices seems substantial, there is still a distance for chip manufacturers to achieve a turnaround. It is expected that prices need to increase by another 40% to allow suppliers to cross the breakeven point. Therefore, prices are expected to be quite strong in the coming quarters.

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(Photo credit: Samsung)

South Korean media Businesskorea reports that Samsung Electronics Co. has postponed the production schedule for its new semiconductor plant in Taylor, Texas to 2025.

Citing a report from Seoul Economic Daily, Siyoung Choi, the President of Samsung’s semiconductor foundry business, mentioned during a speech in San Francisco that Samsung’s new Tyler Plant – with investment of USD 17 billion – is now expected to commence production in 2025.

Samsung’s initial projection, announced in 2021 when the investment plan was disclosed, had anticipated the Taylor plant to start its mass production in the second half of 2024.

Even before the news of Samsung’s Taylor plant production delay, TSMC’s Arizona fab, “Fab 21,” had already decided to postpone its mass production to 2025 due to tool-in and various labor-related issues.

Reportedly, the delays in production schedules for both TSMC and Samsung indicate that the new semiconductor fab of these two companies will not enter mass production until 2025.

As per the report, industry sources point out that issues such as environmental permit challenges and slow progress in government subsidy policies are major obstacles hindering the development of semiconductor projects in the United States.

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(Photo credit: Samsung)