Backend house Powertech Technology (PTI) anticipates a resurgence in demand from the memory sector beginning in the second quarter, with further enhancement projected through the fourth quarter.
Samsung Electronics has denied reports about the redesign of its fifth-generation 10nm-class DRAM (1b DRAM), following media speculation about changes to the latest commercially available technology. Sources had suggested the company was planning to adjust the design to improve performance and yield.
Industry sources indicate that thermal issues associated with GB200 have prompted major clients including Microsoft, Amazon, Google, and Meta to reduce their orders, impacting not only Nvidia's product sales and revenue but also creating significant implications for its primary HBM supplier, SK Hynix.
Samsung Electronics has reportedly delayed the development of its 10nm sixth-generation 1c DRAM to June 2025. Initially slated for completion by late 2024, the timeline has been pushed back by six months due to ongoing yield challenges, potentially affecting mass production plans.
The memory industry experienced fluctuations in its performance in 2024. In the first half of 2024, the three largest international DRAM manufacturers were able to convert losses into profits. However, Taiwan-based memory companies are still facing significant competitive challenges, as revenue growth has not yet translated into improvements in profitability.
At CES 2025, Nvidia CEO Jensen Huang stated that Samsung Electronics (Samsung) must develop a "new design" to pass Nvidia's qualification, sparking discussions about whether Samsung can make a comeback with HBM3E in 2025. However, according to Chosun Biz, many industry insiders pointed out that if Samsung collaborates with Nvidia's competitor Broadcom, a different outcome may emerge.
New players are joining the supply chain competition as China's major memory chip manufacturers have rapidly developed. It seems to challenge the market positions of Samsung Electronics, SK Hynix, and Micron Technology.
The US government has unveiled new semiconductor export restrictions aimed at China, potentially disrupting ChangXin Memory Technologies (CXMT) while favoring Samsung Electronics, SK Hynix, and Micron Technology. Bernstein's analysis, cited by Seeking Alpha and Business Post, suggests these measures will bolster South Korean chipmakers' competitiveness.
Recently, South Korean testing equipment provider Nextin is reportedly in discussions to supply testing equipment to Japanese NAND Flash manufacturer Kioxia. If the negotiations work out, it is expected that Nextin will be able to supply 3D NAND wafer testing equipment to both SK Hynix and Kioxia, two of the largest NAND producers.
China will investigate allegations that the US dumps lower-end chips and unfairly subsidizes its own chipmakers, in potentially one of Beijing's strongest retaliatory moves against American technology sanctions. The government will look into the question of whether the US is giving its chipmakers an unfair advantage through incentives and grants, or illegally undercutting Chinese products, the Commerce Ministry said in a statement on January 16.
Leading NAND flash manufacturers have gradually cut output to stabilize market prices and prevent further declines, as they intend to uphold pricing even beyond the Lunar New Year break, according to industry sources.
The US has introduced new regulations to prevent advanced chips from reaching China. This move aims to tighten restrictions on its geopolitical rival, urging chip manufacturers like TSMC and Samsung Electronics to increase their oversight of customers, particularly Chinese companies.
The demand for industrial memory modules has gradually recovered in the second half of 2024. However, revenue performance in December varied significantly among companies.
In the fourth quarter of 2022, Kingston Technology's divestment from Panram International and subsequent board departure triggered market concerns, prompting Panram to initiate significant operational changes. The company's new strategy involves reducing its DRAM production capacity to below 50% and revenue contribution to approximately 30% while shifting focus toward module applications for system manufacturers and expanding into the automotive market.
Chosun Biz and ICSmart report that Samsung Electronics plans to reduce NAND wafer production at its Xi'an factory in China by over 10%. Amid a global NAND oversupply, this decision likely aims to stabilize prices and reduce losses in its NAND business.
The Biden administration is rolling out measures to bolster US automotive manufacturing and artificial intelligence (AI) development, as it looks to sharpen curbs on Chinese technology and tee up potential restrictions for Donald Trump, to enact.
Nanya Technology, a Taiwan-based DRAM memory producer, forecasts a market comeback starting in the second quarter of 2025, noting that demand has likely reached its low point.
Due to unfavorable memory market conditions and a sluggish consumer market, Nanya Technology experienced a contraction in both volume and pricing for dynamic random-access memory (DRAM) in the fourth quarter of 2024.
The enterprise solid-state drive (eSSD) market is facing potential price declines, raising questions in South Korea about whether Samsung Electronics and SK Hynix will revise their NAND flash production strategies to address the shift.
The chairman of SK Hynix Inc.'s parent and Nvidia Corp. co-founder Jensen Huang met on January 8 to discuss AI, suggesting the two companies are exploring ways to deepen one of the most important relationships in artificial intelligence hardware.
Global memory leaders Samsung, SK Hynix, and ChangXin Memory Technologies (CXMT) are ramping up DRAM production this year, fueling market competition. While oversupply is expected to pressure general-purpose DRAM prices, HBM is poised to command a larger share of profits, according to Chosun Biz. Against this backdrop, SK Hynix is doubling down on plans to expand its HBM DRAM production capacity.
Memory chip prices are anticipated to face downward pressure in 2025, also posing challenges for large companies like Samsung, according to market sources.
Memory module giant Adata reported that its consolidated revenue for December 2024 declined by 17% month-over-month. Yet, it successfully met its annual revenue target of NT$40 billion (approx. US$1.2 billion), marking an 18.81% year-over-year increase and setting a new record high for the past 14 years.
At CES 2025, Nvidia CEO Jensen Huang publicly addressed challenges regarding Samsung Electronics' HBM3E memory design, marking his first explicit acknowledgment of the issues that have sparked industry-wide discussion.
