These are the most-read DIGITIMES Asia stories in the week of August 26 – August 30.
Kaynes SemiCon secures India's first paying OSAT customer for advanced semiconductor packaging
Kaynes SemiCon, a wholly owned subsidiary of Kaynes Technology, has signed a landmark MoU with Lightspeed Photonics, securing India's first paying customer for OSAT services, according to CEO Raghu Panicker. This collaboration will see Kaynes SemiCon provide advanced packaging solutions for Lightspeed Photonics. The announcement was made during the inauguration of Kaynes Technology's new electronics manufacturing unit in Hyderabad, signifying a major leap forward for India's semiconductor ecosystem.
Former TSMC executive set to depart Samsung after two years as advanced packaging division restructures
In early 2023, Samsung Electronics named former TSMC deputy director Jing-cheng "Vic" Lin to lead an advanced packaging task force to compete against TSMC. Samsung hoped that Lin's hiring could replicate the success of former TSMC R&D executive Mong-Song Liang. However, industry insiders indicate that this task force has recently been disbanded, and Lin's contract will not be renewed. There are rumors that Chinese wafer fabs are attempting to recruit Lin, making his next move highly anticipated.
Hua Hong accelerates 12-inch fab expansion, aims to boost overseas orders by 2025
Hua Hong Group, one of China's two major semiconductor foundries is rapidly expanding its production capacity in mature process technologies. It also plans to raise its foundry prices in the third and fourth quarters of 2024 to boost profitability. Hua Hong also expects its overseas revenue contribution to gradually return to around 30%. This aligns with the company's goal for its revenue structure, with orders from Chinese customers maintaining a 70% share.
US CSPs expected to further raise capex in 2025
Major US-based cloud service providers (CSPs) have estimated their 2024 capex will increase by at least 35% year-over-year, with research firms expecting the amounts to rise further in 2025 as the CSPs continue expanding new ASIC projects in the wake of the AI boom. While CSPs' capex growth in 2025 may not be as high as that in 2024, the investment sums will still stay at high levels.
Apple unlikely to move capacity back to China, say sources
Rumor has it that Apple is seeking to partially reverse its production relocation, returning to China some of the manufacturing capacity it has had its suppliers move out of the country. However, sources familiar with Apple's ecosystem said that Apple had long been determined to expand production in India, and it is unlikely that it will change the policy in favor of moving some capacity back to China. The rumors come ahead of Apple's scheduled launch of its new iPhone series – purportedly with AI support – on September 10.
Foxconn quells rumors, confirms on-schedule production for major client
Dispelling rumors regarding the progress of new product shipments for a major client, Foxconn Chairman Young Liu has assured that production lines across the company's facilities are proceeding on schedule. Liu's confidence stems not only from Foxconn's extensive global production network and investment in R&D but also from the maintenance of strong customer relationships. The "major client" is speculated to be either Apple or Nvidia.
SMIC to launch four new 12-inch fabs after 2025, targeting 28nm and above for local demand
China's leading foundry SMIC is significantly expanding its production capacity with four new 12-inch wafer fabs in Beijing, Shanghai, Tianjin, and Shenzhen. These new fabs are expected to successively come online after 2025, adding a combined monthly capacity of 340,000 wafers, with 28nm as the most critical node. The new fabs will be managed by SMIC's subsidiaries in SMBC, SMOC, SMTC, and SMIC Shenzhen. All four fabs are currently under construction.
