Samsung Electronics (Samsung) has implemented a significant personnel adjustment within its Device Solutions (DS) division to regain competitiveness in the semiconductor sector. This includes appointing the head of the foundry business unit and having the DS department head personally lead the memory business.
Nvidia is currently conducting high bandwidth memory (HBM) verification tests with Samsung Electronics (Samsung), with industry attention focused on the validation timeline and potential supply volumes.
Samsung Electronics has enacted changes to its management, including the appointment of a new chief technology officer (CTO) for its foundry operations.
While the US has not yet imposed sanctions on China's high-bandwidth memory (HBM) chips and manufacturing equipment, industry sources expect such restrictions are inevitable. This situation highlights the urgent need for local chip manufacturers in China to develop domestic memory capabilities to address the HBM technology gap.
SK Hynix and Samsung Electronics are focusing on upgrading equipment, transitioning processes, and expanding high-bandwidth memory (HBM) packaging capacity instead of investing in new equipment for 2025. This strategic approach aims to maintain their competitive advantage while managing supply-demand dynamics and pricing stability. However, increased DRAM production by Chinese competitors may challenge the success of this "natural attrition" strategy.
South Korean media report that SK Hynix and Samsung Electronics have reduced their reliance on China over the past seven quarters. SK Hynix's China revenue dropped from 30% to 24%, while Samsung's equipment assets in China fell from 8% to under 5%, signaling ongoing decoupling efforts among South Korea's semiconductor giants.
Jae-yong Lee, chairman of Samsung Electronics (Samsung), was indicted in September 2020 on charges related to illegal inheritance and management practices. He has faced judicial risks for nearly four years, coupled with recent deteriorating performance in Samsung's core semiconductor business and insufficient technological competitiveness, the company's crisis is more severe than ever.
Korean memory vendors intend to promote LPDDR5 as the prevalent specification, which will necessitate a reduction in the output of LPDDR4 and LPDDR4X chips, according to industry sources.
In 2024, Samsung Electronics and SK Hynix saw their US semiconductor revenue surge, driven by robust demand from AI-focused tech firms and data centers. This growth stemmed from increased sales of premium semiconductor products such as HBM and DDR5 modules.
During Nvidia's earnings call for the third quarter of fiscal year 2025, CEO Jensen Huang expressed gratitude to supply chain partners including TSMC and SK Hynix for their contribution to the next-generation Blackwell chips. However, Samsung Electronics (Samsung) was notably absent from this acknowledgment, sparking speculation about the availability of its HBM3E.
Elite Semiconductor Microelectronics Technology Inc. (ESMT) expected a rebound in the memory market in the second half of 2024, driving an increase in wafer production. However, demand recovery underperformed expectations, resulting in elevated inventory levels. The company is now prioritizing efforts to address these backlogs.
With the acceleration of Blackwell mass manufacturing, the capacity of HBM3E will greatly grow. According to industry estimates, after a twofold rise in HBM production in 2024, demand from AI servers will drive exponential growth in HBM output in 2025.
SSD sales have been buoyed by specifications upgrades, according to industry sources, while DRAM module sales have exhibited signs of weakness. In 2024, they predict that SSD sales will surpass those of DRAM modules.
SK Hynix's strategic focus on high-end NAND memory, coupled with rising AI-driven demand, is expected to push its annual market share above 20% in 2024, bringing it closer to industry leader Samsung Electronics.
Samsung Electronics is bolstering its HBM competitiveness through significant investments in advanced packaging. Upgrades are underway at its Cheonan facility in South Korea, and its Samsung Electronics Suzhou Semiconductor (SESS) plant in China is receiving new semiconductor production tools. According to Seoul Economic Daily and Businesskorea, Samsung secured contracts worth KRW20 billion (approx. US$14.32 million) in the third quarter of 2024 to drive this expansion.
Samsung Electronics will reportedly terminate its MLC NAND production by next year, shifting focus to high-capacity NAND production, according to industry sources.
Despite making progress in DDR5 power management IC (PMIC) development over the past two years, Taiwanese suppliers have seen limited revenue growth in this sector. This limitation stems from persistent market dominance by non-Taiwanese players and memory manufacturers' increasing focus on high-bandwidth memory (HBM) products.
Micron Technology is taking a more pragmatic approach to its operations in China, aligning its strategy with Chinese government expectations while navigating US technology restrictions. The company's shift includes increased market engagement and investment commitments, marking a departure from its previous low-profile stance.
According to a press release, on November 18, Samsung Electronics held a tool-in ceremony for its new semiconductor research and development complex (NRD-K) at its Giheung campus, which will house ASML's high-NA EUV system.
Yangtze Memory Technologies Corp (YMTC), a prominent Chinese memory manufacturer, has achieved a milestone with its Zhitai brand, overtaking Samsung Electronics in solid-state drive (SSD) sales on domestic e-commerce platforms for the first time. This marks a pivotal shift in the Chinese SSD market, historically dominated by foreign players.
China's DRAM manufacturers are intensifying market competition through aggressive DDR4 production expansion. ChangXin Memory Technologies (CXMT) leads this push, while Fujian Jinhua Integrated Circuit, which recently emerged from US sanctions, moves steadily toward mass production. Chinese manufacturers now offer DDR4 chips at prices 5% below second-hand market rates and nearly 50% lower than established global producers, compelling South Korean competitors to reduce DDR4 production and concentrate on premium DDR5 and HBM3 segments.
Samsung Electronics' recent decision to transfer personnel from its semiconductor research institute to various business units has sparked concerns over a potential talent drain, as the moves could result in significant reductions in performance bonuses for affected researchers.
South Korea's semiconductor sector anticipates that Donald Trump's presidential victory could intensify restrictions on China's high-tech industries, particularly affecting the semiconductor sector. This development may force strategic adjustments from South Korean semiconductor leaders Samsung Electronics and SK Hynix, as they consider gradually reducing their operational presence in China to align with new US-China trade policies.
