These are the most-read DIGITIMES Asia stories in the week of October 14 - October 20.
Samsung reportedly lowers HBM production target by 10%; reassigns R&D personnel to boost competitiveness
Samsung Electronics has confirmed delays in its high-bandwidth memory (HBM) supply, adjusting its 2025 production target down by over 10% due to Nvidia's extended certification process. Monthly HBM production is expected to drop from 200,000 to 170,000 units, with overall capacity revised to around 12 billion GB. To boost competitiveness, Samsung plans to assign R&D personnel directly to production lines, improving collaboration. With operating profits falling to KRW9.1 trillion amid struggles in its HBM and foundry businesses, Samsung is also restructuring, removing its LED unit from the DS division to focus on power semiconductors and micro LEDs.
China's semiconductor powerhouses unite as Beijing unleashes massive stimulus push
More than 300 industry leaders from global giants like STMicroelectronics, AMD, Huawei, and SMIC convened in Shanghai for the "Breaking Through the Chip Era" summit over the September 21 weekend, underscoring China's ambition to strengthen its semiconductor industry. The gathering coincided with Beijing's economic stimulus measures, which poured substantial liquidity into the tech sector following the U.S. Federal Reserve's rate cuts. Companies like SMIC, Hua Hong Semiconductor, and Tongfu Microelectronics benefited from the funding, but analysts caution that capital inflows may not directly translate into immediate economic recovery. The focus remains on spurring consumer demand and industry upgrades to sustain growth.
Two factors mitigate serious threats from China's memory chip production expansion, says industry experts
China's memory manufacturers, led by CXMT and YMTC, are expanding capacity but face hurdles that keep them market followers for now. Despite CXMT's planned jump to 200,000 wafers by 2024 and efforts to enter the HBM sector, U.S. sanctions and initial yield uncertainties limit their global impact. YMTC's production delays further hinder their competitive edge. Both companies' heavy reliance on government support and alignment with national strategies stifles profitability and global reach, making them less of a threat to established giants. Strategic conservatism, driven by lifetime accountability for state-owned decision-makers, reinforces a cautious growth approach.
ASML CEO: Asia to lead global semiconductor manufacturing for years ahead
ASML CEO Christophe Fouquet has underscored Asia's rapidly expanding dominance in global semiconductor production, as the region continues to outpace investment efforts in the US and Europe. Despite subsidies and tax incentives aimed at bolstering local manufacturing, Fouquet warns that relying solely on such measures is unsustainable, highlighting the need for structural changes to address long-term cost control and production flexibility. Asia's semiconductor market, led by China, Taiwan, and South Korea, remains ASML's key revenue driver, contributing 46% of global equipment sales in the second quarter of 2024. Meanwhile, geopolitical tensions, particularly US pressure to restrict China's access to advanced technology, pose challenges for the Dutch company's global operations.
Self-reliance in chipmaking leads to plagiarism and intense competition, says ACM chairman
China's semiconductor equipment industry is grappling with internal challenges as US export restrictions push local firms to accelerate self-sufficiency. At the 2024 Semiconductor Equipment and Core Components Showcase in Wuxi, ACM Research chairman David Wang condemned rampant unethical practices like equipment refurbishment and imitation, warning they undermine true innovation. As domestic manufacturers vie for market share, many employ cost-cutting tactics, including the refurbishment of old equipment, posing legal and competitive risks. Despite robust demand for chips, Wang urged the industry to focus on R&D and respect intellectual property, arguing that true growth stems from innovation, not imitation.
SBI fumes over PSMC withdrawal, but semicon insiders question how they didn't see it coming
The collapse of a semiconductor joint venture between Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) and Japan's SBI Holdings has sparked conflicting statements, with SBI accusing PSMC of broken promises, while insiders suggest shared responsibility. SBI, a financial firm, claims PSMC unilaterally withdrew from their wafer fab project, while PSMC asserts the partnership's demise stems from strict Japanese subsidy terms and legal constraints. Industry observers had long viewed the collaboration skeptically, questioning SBI's lack of semiconductor expertise and due diligence, while pointing to PSMC's shaky financial history. The breakdown underscores the risks of ambitious chipmaking ventures without solid groundwork.
China imposes restrictions on SiC expansion
China's silicon carbide (SiC) market is facing a shake-up as improving yields have led to an oversupply of substrates, prompting the government to tighten restrictions on expansion approvals. The National Development and Reform Commission (NDRC) now controls the approval process, and in 2024, fewer than ten companies received permits for 8-inch production, causing a bottleneck in growth. This has left many businesses in limbo, unable to secure financing or government contracts, while companies like SICC, Summit Crystal Semiconductor, and Semicore, with strong 6-inch operations, continue to thrive. The unclear regulatory landscape has stifled expansion plans, particularly amid plummeting prices for 6-inch and 8-inch SiC substrates.
