These are the most-read DIGITIMES Asia stories in the week of September 30 - October 6.
Samsung delays Taylor and Pyeongtaek fab construction amid global semiconductor slowdown
Samsung Electronics has delayed construction and equipment orders for its Pyeongtaek Phase 4 (P4) plant in South Korea and its second facility (T2) in Taylor, Texas, due to global economic challenges, increased competition, and declining memory chip profitability. The postponement affects suppliers and investment timelines, with the first Taylor plant expected to be completed by 2026.
Samsung is reassessing its expansion plans in light of weak demand for memory chips, while also facing staff reductions and operational adjustments, though some of these changes are attributed to routine employee rotations.
How China is accelerating advanced packaging with HBM and CoWoS amid tightening US restrictions
AI chip advancements depend on packaging technologies like CoWoS and HBM, but US export controls on high-performance computing chips have impacted Nvidia's supply to China. As a result, China is pushing to develop its own advanced packaging capabilities, though it faces challenges. Leading companies like TSMC and Intel dominate the market, benefiting from their front-end expertise. While Chinese firms like JCET and Tongfu Microelectronics are investing in advanced packaging, they still lag behind international competitors and require significant technological improvements to catch up.
Novatek to mass-produce OLED TDDI in 2Q25; Apple expected among first customers
Novatek, Taiwan's leading display driver IC (DDI) manufacturer, plans to begin mass production of its OLED TDDI technology by the second quarter of 2025, positioning it for significant market growth. Speculation suggests Novatek may become a key supplier for Apple's next-generation iPhone displays, marking a major breakthrough in its market share and Apple's supply chain. OLED DDI is projected to surpass 50% market penetration by 2024, with major brands expected to adopt OLED TDDI by 2025. While Novatek is expanding its reach with Chinese panel makers, it faces competition, particularly from South Korean suppliers.
Micron's HBM capacity full until 2025, poised for multi-billion dollar revenue boost
Micron is capitalizing on the growing demand for AI-driven data centers, projecting the high-bandwidth memory (HBM) market to surpass $25 billion by 2025. The company reported a 93% year-on-year revenue jump in Q4 FY2024, driven by strong DRAM and HBM sales.
Micron's HBM production capacity for 2024 and 2025 is fully booked, and it has started delivering its 36GB 12-layer HBM3E to partners for AI validation. Micron is expanding globally, including building new plants in the US, India, and China, and repurposing a Taiwan facility for DRAM production to meet growing AI and data center demand.
Intel embraces TSMC 3nm to safeguard PC dominance
Intel's new Core Ultra 200V processor family, codenamed Lunar Lake, will be manufactured using TSMC's 3nm process, marking a shift in x86 architecture power consumption. Facing intense competition and restructuring challenges, Intel aims to defend its PC processor market leadership by outsourcing production to TSMC.
The Lunar Lake processors have significantly improved battery life, surpassing Apple's M2 and M3 chips, with over 20 hours of battery performance in notebooks from brands like Asustek and MSI. This improvement is expected to help Intel regain lost market share. The chips feature Intel's Foveros packaging technology and advanced microarchitectures, positioning Intel to compete with ARM-based devices and recover in the AI PC sector.
Penang outlines semiconductor cluster: Focus on PCB, backend
Penang, Malaysia, is emerging as a key semiconductor hub, especially for PCB and backend supply chains, due to the US-China trade war. Major OSATs, including ASE Technology, are relocating production from China, with Penang becoming a preferred site for expansion. Intel and other global tech firms have long-established operations there, and new investments are increasing. The region offers affordable labor, an English-speaking workforce, and political stability, making it a strategic winner as companies shift supply chains from China to Southeast Asia. Penang is expected to play a crucial role in the growing semiconductor market.
