ELECTRONIC NEWS HIGHLIGHT W23.2024

1. Global chip manufacturing with strong sales growth in 2024

According to SEMI’s latest report, with global electronics sales increasing, inventories stabilizing and factory capacity increasing, the global semiconductor manufacturing industry showed signs of improvement in the first quarter. of 2024 and stronger growth is expected in the second half of the year.

Specifically, chip sales posted an annual increase of 22% in Q1 2024 and are expected to increase 21% in Q2 2024 as high-performance computing (HPC) chip shipments increase , memory prices continue to improve.

Additionally, wafer production capacity continues to increase and is expected to exceed 40 million wafers (300mm wafers) per quarter. Production capacity increased 1.2% in the first quarter of this year and is expected to increase 1.4% in the second quarter. China has the highest production capacity growth rate among all regions.

The report points out that demand in some semiconductor segments is recovering but the pace of recovery is uneven. Artificial intelligence chips and high-bandwidth memory are currently the most in-demand devices, leading to investment and capacity expansion in these areas. However, because AI chips rely on a few key suppliers, the impact on overall chip shipment growth remains limited.

Learn more: Global chip manufacturing with strong sales growth in 2024

2. Samsung and SK Hynix converted more than 20% of DRAM production lines to HBM

According to Korea Economic Daily, to meet the needs of the artificial intelligence field, Samsung and SK Hynix have converted more than 20% of DRAM production lines into HBM production lines.

In early May, SK Hynix President and CEO Kwak Noh-jung said that the company’s HBM production capacity this year has been sold out, and next year’s production products are basically sold out.

Samsung Electronics Company said HBM products have also been sold out. Considering the supply and demand situation, HBM will not be oversupplied in 2025. Samsung Electronics pointed out that the company has narrowed the gap with SK Hynix in 8-layer HBM3E chips, while taking the leading position in the HBM3E 12 market class. Samsung plans to start production of 12-layer HBM3E chips as early as Q2 2024.

The report points out that despite facing challenges from fierce market competition and price fluctuations, Samsung Electronics and SK Hynix remain optimistic about the prospects of the memory chip market and are meeting demand. Market demand is increasing by adjusting production lines and signing long-term supply contracts.

Learn more: Samsung and SK Hynix converted more than 20% of DRAM production lines to HBM

3. Samsung and SK Hynix will stop providing DDR3 from the second half of 2024

According to information from supply chains, Samsung and SK Hynix are shifting their focus to high bandwidth memory (HBM) and DDR5 memory, and will stop providing niche DDR3 DRAM from the second half of 2024.

According to insiders, SK Hynix switched its Wuxi factory’s DDR3 production process in mainland China to DDR4 as early as the end of last year. Samsung also recently informed customers that it will stop producing DDR3 at the end of the second quarter of 2024. As for Micron, to expand DDR5 and high-bandwidth memory production capacity, the company has significantly reduced supply DDR3.

Industry insiders also say that Samsung and SK Hynix’s exit from the DDR3 market will benefit other manufacturers focusing on DDR3, such as Winbond.