Semiconductor News 7.10

1. Samsung Electronics: Plans to Develop Customized HBM Memory for Customers in the HBM4 Generation

According to reports from South Korean media The Elec and ZDNET Korea on July 10, Samsung Electronics announced at the Samsung Foundry Forum & SAFE Forum 2024 in Seoul that customized HBM (High Bandwidth Memory) is expected to become a reality in the HBM4 generation. Samsung is developing high-capacity HBM4 memory with up to 48GB per stack, which is expected to go into production next year.

Choi Jang-seok, head of the new business planning group at Samsung Electronics' memory division, said, “We are seeing significant changes in the HBM architecture. Many of our customers are shifting from traditional general-purpose HBM to customized products.” He added, “Customized HBM will offer different options in terms of PPA (Power, Performance, and Area) compared to standard products, bringing significant value.”

2. TSMC Reports June 2024 Revenue of NT$207.87 Billion, Up 32.9% Year-over-Year

Taiwan’s Economic Daily News reported on July 10 that TSMC has just announced its revenue figures for June 2024. Consolidated revenue for June was approximately NT$207.87 billion (about RMB 46.50 billion), a decrease of 9.5% from the previous month but an increase of 32.9% compared to June of the previous year. For the first half of 2024, TSMC’s cumulative revenue was approximately NT$1.27 trillion (about RMB 283.25 billion), up 28.0% from the same period last year.

3. World Advanced Reports Q2 Revenue of NT$11.065 Billion, Up 12.29% Year-over-Year

According to Taiwan’s Industrial and Commercial Daily News on July 10, wafer foundry World Advanced reported a consolidated revenue of NT$4.106 billion for June, up over 15% month-over-month and 30.55% year-over-year. For Q2, consolidated revenue was NT$11.065 billion, up 14.87% quarter-over-quarter and 12.29% year-over-year. A spokesperson for World Advanced, Huang Hui-lan, stated that the increase in wafer shipments drove the company’s revenue growth in June.

4. TSMC to Begin 2nm Test Production Next Week, 6/7nm Process Prices to Drop by 10% from January 2025

Wccftech reported on July 10 that TSMC will begin test production of 2nm node chips next week at its new wafer plant in Baoshan, Hsinchu. The company will also test the required equipment and components, which began arriving and being installed in the second quarter. Apple is reportedly planning to use 2nm node chips in its products in 2025, which may make the upcoming iPhone 17 series the first devices to use this advanced process.

Additionally, TSMC's 6/7nm node prices have decreased, with utilization rates at only 60%. Prices are expected to drop by 10% starting January 1, 2025. Previously, TSMC had announced a 5% to 10% price increase for 3/5nm node processes due to high demand exceeding supply in 2025.

5. Former ASML CEO: US Restrictions on Exports to China Are Ideologically Driven and He Will Lobby Against Strict Export Controls

CCTV International News reported on July 10 that Peter Wennink, former CEO of Dutch semiconductor equipment manufacturer ASML, discussed US restrictions on ASML’s export of chip production equipment to China during an interview with Dutch BNR Radio. Wennink stated that these actions are “ideologically driven” rather than based on “facts, content, figures, or data.” He added that if the decision were based on data, the US government might reach a conclusion very different from the current ideologically motivated one.

Wennink noted that ASML has had customers and employees in China for over 30 years, contributing to ASML’s business development, and thus ASML has “an obligation to them.” He will lobby as much as possible to prevent stringent export restrictions. Wennink served as ASML's CEO for nearly 11 years and stepped down in April of this year.

6. YK Technology, Supplier to SK Hynix, Reports Up to 100% Increase in Q2 Net Profit

Ke Chuangban Daily reported on July 9 that YK Technology has disclosed its half-year earnings forecast, expecting net profit for the first half of the year to be between RMB 512 million and RMB 580 million, up 50.00% to 70.00% year-over-year. In Q2 alone, the net profit attributable to shareholders is expected to be between RMB 267 million and RMB 334 million, representing a year-over-year increase of 57.99% to 98.52%, setting a new record for quarterly net profit.

The company attributes its performance growth to three factors: ① Increased demand in the LNG market has led to growth in orders for large LNG carriers, fuel tanks, and engineering installations, with a significant increase in sales of LNG cryogenic insulation composite panels; ② With the integrated circuit industry experiencing recovery growth in 2024 and the rapid development of artificial intelligence, big data, and cloud computing, the increase in domestic integrated circuit production lines and capacity has led to fast growth in downstream products such as memory and logic chips and AI HBM, resulting in a notable increase in sales of semiconductor electronic materials; ③ The recovery growth of the display panel industry in 2024 and the increased popularity of OLED display products, along with the consumption updates of display electronic products driven by the 2024 Olympic year, have led to a significant increase in sales of display panel materials and supporting products.

YK Technology’s semiconductor precursor customers include SK Hynix, Samsung, and Intel, with SK Hynix being listed among NVIDIA’s HBM suppliers. YK Technology’s stock price has doubled since early February this year.

7. NIO and Xpeng’s Self-Developed Smart Driving Chips Enter Tape-Out Stage, Installation in Vehicles Countdown Begins

36Kr reported on July 9 that NIO’s self-developed smart driving chip, "Shenwei NX9031," has entered the tape-out stage and is currently being tested. According to sources, the Shenwei NX9031 is planned to debut in NIO’s flagship sedan ET9 in Q1 2025. “The chip team has taken a commitment; the new ET9 must feature the Shenwei NX9031 next year, which is a significant pressure,” said a source. Meanwhile, Xpeng’s self-developed smart driving chip has been sent for tape-out and is expected to return in August. Li Auto’s smart driving chip development, codenamed "Schumacher," is also expected to complete tape-out by the end of the year.

8. Samsung’s First Ever General Strike Enters Third Day: Thousands Participate, Semiconductor Division is the Main Force

According to a report from Yonhap News on July 10, Samsung Electronics’ largest union, the "National Samsung Electronics Union," announced on its website that an indefinite strike would be held due to the company management’s "unwillingness to engage in dialogue." The report states that after the general strike mobilization meeting, the union conducted a strike "training" with 1,000 members on July 9 and plans to continue the "training" and strike on July 10. The union reports that 6,540 people have declared participation in the strike. The union estimates 4,000 to 5,000 participants at the mobilization meeting, while Samsung and the police estimate 3,000 participants. According to South Korean media, semiconductor department employees are the main force in this strike. Samsung has stated that the operation of the semiconductor production line has not been significantly affected.

Previously, the union had made a series of demands to the company, including higher salary increases for all union members, fulfillment of paid leave commitments, improvement of the bonus standards based on economic added value, and compensation for wage losses due to the strike. Samsung stated that the current market conditions are not favorable for meeting these demands, and alternative workers have been employed at the factory, with no significant impact on production. The production lines have also not been significantly affected.

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