Semiconductor Market News (JUN. 10 to JUN. 16)| Chipmakers Brace for TSMC Price Hike; SK Hynix To Begin GDDR7 Mass Production in Q4...

01. Chipmarkers Brace For TSMC Price Increases

From?the supply chain, TSMC is planning to raise the price of its advanced processes, including the 3nm process. This means that part of the cost of adopting the 3nm process will be passed on to consumers. Currently, TSMC's 3nm capacity has been allocated to Apple, Qualcomm, Nvidia, and AMD, with production schedules booked until 2026.

As a result, when TSMC's price hike takes effect, products from these brands are expected to see price adjustments. This includes upcoming releases such as the iPhone 16 series, RTX 50 series graphics cards, and new processors from Qualcomm, Intel, and AMD.

Given the timing, products launched in the second half of this year, especially high-end models, are likely to see price increases.

?

02. Semiconductors Hit Record Highs As Industry Reaches $6.3 Trillion

The semiconductor rally continues its unstoppable advance, fueled by the propulsion of artificial intelligence, with the U.S. chipmaking industry now soaring to a combined valuation of $6.3 trillion.

The PHLX Semiconductor Sector Index, mirrored by the Invesco PHLX Semiconductor ETF SOXQ, is poised for a 6% gain this week, marking its strongest performance in two months and achieving record-high levels.

Since late October 2023, the index has surged by 78%, while the broader chip industry has seen an astonishing 169% increase from its October 2022 low.

In stark contrast, the broader tech sector, as tracked by the Invesco QQQ Trust QQQ, has risen by 39% from its October 2023 low and by 88% since October 2022.

03. SK Hynix: GDDR7 Mass Production To Start inQ4'2024

SK Hynix has clarified to AnandTech that the company plans to start mass production of GDDR7 memory in the fourth quarter of this year, aligning with the market opening up. This update has been reflected in the article.

GDDR7, a major JEDEC memory standard, will be produced by all three leading memory manufacturers. However, it appears that the production timelines for these companies will differ.

At this year's Computex trade show, SK Hynix showcased their complete lineup of memory technologies, including GDDR7. SK Hynix is the last major memory vendor to promote their GDDR7 memory and will also be the last to begin mass production, scheduled for the last quarter of 2024.

In comparison, Samsung, SK Hynix’s cross-town rival, is already sampling GDDR7 memory with the goal of launching it in 2024. Micron is even more aggressive, aiming to start mass production early enough this year to allow some customers to ship finished products before year-end.

It’s important to note that in the context of industry-standard memory technologies, one vendor starting mass production first does not mean others are late. It simply indicates that one vendor was the first to validate their product with a partner, and that partner plans to ship in 2024. While mass production at SK Hynix is still several months away, the company already has sample chips available for partners to test, and these were demonstrated at Computex.

At SK Hynix's Computex 2024 booth, the company displayed GDDR7 chips and provided a summary of its roadmap. Currently, SK Hynix plans to offer both 16Gbit and 24Gbit chips with data transfer rates of up to 40 GT/s. The timeline for launching higher-end configurations is still unclear. Both Samsung and Micron are starting with 16Gbit chips running at 32 GT/s, so being the first to release faster or larger chips would be a significant achievement for SK Hynix.

?

04. Samsung Unveils Plan To Speed Up Delivery Of AI Chips

Samsung expects global chip industry revenue to grow to $778 billion by 2028, driven by the demand for AI chips, according to Executive Vice President of Foundry Sales and Marketing Marco Chisari. ?He noted that OpenAI CEO Sam Altman's projections on the increasing need for AI chips are realistic. ?Altman has reportedly told TSMC executives that he aims to build around three dozen new chip factories.

Samsung is uniquely positioned as one of the few companies that sell memory chips, offer foundry services, and design chips all under one roof. ?This structure has sometimes been a disadvantage, as clients worried that doing business with Samsung's foundry might benefit it as a competitor. ?However, the rising demand for AI chips, which require highly integrated components to process large amounts of data quickly and efficiently, makes Samsung's comprehensive approach an advantage.?

The company highlighted its advanced chip architecture, known as gate-all-around (GAA), which enhances chip performance and reduces power consumption. ?As chips become increasingly smaller and approach the limits of physics, GAA becomes crucial for developing more powerful AI chips. ?While competitors like TSMC are also developing GAA-based chips, Samsung adopted this technology earlier and plans to mass-produce its second-generation 3-nanometer GAA chips in the latter half of this year.

Additionally, Samsung unveiled its latest 2-nanometer chipmaking process for high-performance computing chips, which improves power delivery by placing power rails on the backside of the wafer. ?Mass production for this process is scheduled for 2027.

?

05. Nokia and Foxconn To Make 5G Products In Northern Vietnam

Nokia partnered with Foxconn to manufacture 5G devices in northern Vietnam to meet both domestic and international demands. This move aligns with manufacturers' efforts to expand their operations in Southeast Asia.

According to Vietnam Investment Review and VNExpress, Foxconn will begin producing Nokia's 5G AirScale equipment, including the latest AirScale Massive MIMO radio products, starting in July, with production scaling up in September 2024. These products will be available in both local and global markets.

Ruben Flores, general director of Nokia Vietnam, stated that the partnership with Foxconn will fulfill customer demand, improve cost efficiency, and reinforce Nokia's commitment to optimizing its manufacturing, distribution, and supplier networks in the region.

Foxconn, which has been in Vietnam for 17 years, highlighted Vietnam's importance as a manufacturing hub. Local production of AirScale equipment will enable Vietnamese service providers to accelerate their 5G rollouts.

Vietnam recently started its 5G auction in 2024, with Viettel and VNPT securing the first spectrum licenses. The final bidder will be decided by the end of June. Successful bidders must deploy 5G services within 12 months and build over 3,000 base stations within two years.

During a March visit to Vietnam, Nokia CEO Pekka Lundmark expressed Nokia's commitment to supporting Vietnam's digital transformation and local manufacturing policies. In May, Foxconn spokesperson James Wu indicated that the company plans to prioritize expansion in China, India, Mexico, and Vietnam, with Vietnam becoming a hub for computing products.

06. iPhone 16 Series Poised for Breakthrough

At WWDC 2024, Apple introduced Apple Intelligence, an AI system integrated across iPhone, iPad, and Mac. Key AI-powered features include managing notifications, drafting email responses, and summarizing text. Siri is also getting an AI upgrade for better app control and a preview of ChatGPT integration. Additional capabilities of Apple Intelligence include generating custom emojis and cleaning up photo backgrounds, using both on-device processing and a private cloud system.

Besides AI advancements, Apple announced several other updates:

· A more customizable iPhone home screen in iOS 18

· RCS support for Messages

· A Calculator app for iPad

· Updates to visionOS

· The ability to mirror an iPhone on a Mac with macOS 15