SK Hynix CEO Noh-Jung Kwak, reflecting on the emergence of China's DeepSeek, predicts that the generative AI model will ultimately have a positive impact on the semiconductor industry in the long run.
In recent years, Quad-Level Cell (QLC) NAND has gradually penetrated mainstream applications such as PCs and enterprise-level storage, but it has yet to make substantial inroads into the mobile phone supply chain. Numerous media stories have indicated that Apple was considering the adoption of QLC NAND to cut costs; nevertheless, these claims remain unverified.
With the ongoing development of new-generation processors, the introduction of PCIe Gen5 specifications into high-end PC applications is set to commence in 2025. According to Micron Technology, Gen4 products currently represent 25% of PC applications, and it is expected that half of these will transition to Gen5 over the next year.
Memory firms are stepping up recruitment efforts, as global demand intensifies for manpower supporting development of semiconductors for AI applications.
A former Samsung Electronics senior manager was sentenced to seven years in prison and fined KRW200 million (approx. US$138,820) by a South Korean court for allegedly leaking core semiconductor technology to China's ChangXin Memory Technologies (CXMT). Analysts warn that the breach could inflict substantial losses on both Samsung and South Korea.
Japanese NAND Flash manufacturer Kioxia unveiled its latest advancement in NAND flash memory technology on February 20, featuring an impressive increase to 332 layers, up from the previous 218 layers. This innovation not only enhances data transfer speeds by 33% but also improves power efficiency during read operations, positioning the company to meet the growing demands of artificial intelligence (AI) data centers and similar applications.
The emergence of DeepSeek has demonstrated that edge artificial intelligence (AI) development can proceed without high-performance graphics processing units (GPUs), spurring increased interest in Winbond Electronics' tailored AI memory solutions.
China's memory industry is making remarkable progress, substantially closing the technology gap with South Korea in DRAM and NAND flash manufacturing. The country has also achieved significant breakthroughs in high-bandwidth memory (HBM), a critical component for AI-driven computing.
In the latter half of 2024, global demand for silicon wafers began to rebound from the industry's downturn experienced in 2023, as reported by the SEMI Silicon Manufacturers Group (SMG) in its year-end assessment of the silicon wafer sector.
SK Hynix is reportedly expanding its production of fifth-generation, 12-layer HBM3E, with Hanmi Semiconductor and ASMPT expected to lead in equipment orders. Hanmi is set for growth in the expanding market, fueled by increased Micron investment in HBM. However, the rise of DeepSeek could create uncertainties in the HBM market, potentially affecting equipment demand.
Samsung Electronics' semiconductor head Young-Hyun Jun reportedly met with Nvidia CEO Jensen Huang in the US, fueling speculation that Samsung is advancing its bid to supply HBM3E memory. Industry sources suggest the visit signals that Samsung's 8-layer HBM3E could soon pass Nvidia's quality certification.
SK Hynix has reportedly appointed Vice President Woong-sun (William) Lee to head its newly established semiconductor packaging facility in the US. His leadership will be closely watched as the company navigates intensifying market competition.
Chip manufacturers are actively promoting price rises in the second quarter, leading to an expected rise in DRAM and NAND flash prices during this period.
The DRAM market is shifting as falling prices due to weak demand prompt top players like Samsung Electronics, SK Hynix, and Micron to adjust their strategies. These companies are pivoting toward DDR5 and high-bandwidth memory (HBM) and may phase out DDR3 and DDR4 by 2025, anticipating a future focused on advanced memory technologies.
Taiwan's total IC industry output value—including IC design, IC manufacturing, IC packaging, and IC testing—was NT$1.49 trillion (US$45.5 billion) in the fourth quarter of 2024, up 8% quarter-over-quarter and 24.2% year-over-year, according to Taiwan's Industrial Technology Research Institute's Industrial Economics and Knowledge Center (IEK).
Nippon Electric Glass (NEG) is increasing its production of carrier glass for advanced memory and semiconductor packaging due to the growing demand for generative AI, which has boosted sales of glass materials used for support in semiconductor processes. The company plans to enhance capacity at its Shiga Prefecture factory in Japan.
Kioxia has projected a return to profitability for fiscal 2024 (April 2024 - March 2025). However, its capex is expected to decrease by approximately 25% year-over-year in response to the accumulation of NAND Flash inventory.
Recent industry reports reveal that Micron is preparing to begin mass production of its 12-layer HBM3E memory for Nvidia, potentially creating significant pressure on Samsung Electronics as it struggles to keep pace with this advancement, which could impact its memory business.
Mexico launched the "Kutsari Project" to transform its semiconductor sector by improving design capabilities, revising patent laws, and establishing dedicated R&D centers. This initiative comes as global semiconductor competition intensifies, and Mexico lags despite significant commitments, necessitating swift advancement.
Macronix International, a Taiwan-based manufacturer of mask ROM and flash memory, is strengthening its competitive product portfolio while anticipating its in-house developed 3D NOR chips to bolster operations starting in 2026.
AUO has agreed to sell the Taichung facilities of its subsidiary, AUO Crystal, to Micron Technology. This is the second time the panel maker has sold assets to the memory vendor.
ChangXin Memory Technologies (CXMT) has accelerated its next-generation DRAM development, transitioning from 17nm to 16nm process technology for its first DDR5 product, according to TechInsights. The company is also advancing 15nm DRAM, with plans to complete R&D by 2025 and begin mass production in late 2026.
Samsung Electronics' foundry unit is set to ramp up production, lifting shutdown measures on its manufacturing equipment and targeting full operational capacity at its Pyeongtaek facility by June 2025, according to industry sources.
Samsung Electronics plans to convert part of its 3D NAND production at its Xi'an plant in China to the company's most advanced 286-layer stacked products.
