Weekly Industry Highlights (Weekly 9 for 2025)

Market: Silicon Wafers, Panasonic, NAND

01. SEMI: Global Silicon Wafer Shipments Decline by 2.7% in 2024, Market Recovery Shows Early Signs

According to a report from SemiMedia on February 17, 2024, global silicon wafer shipments are projected to decline by 2.7%, reaching 12.266 billion square inches, while sales for silicon wafers will drop by 6.5%, totaling $11.5 billion. The decline is attributed to weak end-user demand in certain sub-sectors, affecting wafer fab utilization rates and specific application wafer shipments.

However, global demand for silicon wafers began to recover in the second half of 2024, following the industry's downturn in 2023. This recovery trend is expected to continue into 2025, with stronger improvements anticipated in the latter half of 2025.

02. Panasonic Adjusts Prices for Conductive Polymer Tantalum Capacitors

Panasonic Corporation issued a price adjustment notice to its valued customers on February 18, 2025, announcing price increases for certain low-voltage models of conductive polymer tantalum capacitors (POSCAP).

Panasonic stated that it has become increasingly difficult to continue business at current prices, as production equipment upgrades are necessary for these components. The company requested that customers cease using these parts or replace them with other models by April 1, 2025. If customers wish to continue using these components beyond this date, Panasonic hopes they will accept the price adjustments outlined in the annex.

03. Memory Spot Market Price Update: NAND Demand Rebounds, Samsung Halts Small Capacity MLC Production

According to the latest report from TrendForce, memory spot market prices as of February 19, 2025, show the following trends:

• DRAM Spot Prices:
• DDR5 DRAM prices are on the rise, primarily due to a shortage of overclocked DRAM chips from SK hynix, which are in high demand in the gaming laptop market.
• DDR4 DRAM prices remain weak due to oversupply, with overall market prices staying relatively low.
• In the first half of 2025, DRAM prices are expected to continue to be impacted by sluggish market demand and oversupply, especially for server DRAM prices, which could further decline.
• NAND Flash Spot Prices:
• NAND flash demand saw a rebound after the Chinese New Year, particularly for small capacity MLC products. Samsung’s halt on production of these products has led to an increase in MLC eMMC prices.
• Prices for large capacity NAND chips are also rising as the market's low-price inventory is gradually being absorbed, though buyers remain cautious.

Original Manufacturer Updates: Micron, STMicroelectronics, Analog Chips

04. Micron to Begin Mass Production of 12-Layer Stacked HBM for Nvidia

As reported on February 17, Micron is set to begin mass production of 12-layer stacked high-bandwidth memory (HBM) for Nvidia. Micron completed the product’s development in September 2023 and presented samples to customers. Micron’s CFO, Mark Murphy, noted that the new product reduces power consumption by 20% and increases capacity by 50% compared to its competitor’s 8-layer stacked products.

Micron expects to concentrate most of its HBM production on the 12-layer stacked version in the second half of this year. HBM technology is crucial for high-performance computing and AI applications using GPUs, as it improves data processing speed and bandwidth. Samsung Electronics lags behind in this area, still in the early production stages of its 8-layer stacked products and has not yet completed tests for its 12-layer stacked products. Meanwhile, SK hynix is accelerating the development of HBM4 to meet Nvidia’s requirements, with plans to complete it by year-end. Micron also announced that next-generation HBM4 is expected to ship in 2026.

05. STMicroelectronics Provides Higher-Performance Cloud Optical Interconnects for Data Centers and AI Clusters

STMicroelectronics announced a new technology on February 20, aimed at providing higher-performance cloud optical interconnect solutions for data centers and AI clusters. This technology utilizes advanced optical interconnect methods to significantly enhance data transmission rates and reduce energy consumption, enabling larger-scale data processing and analysis, crucial for the growing demands of cloud computing and AI applications.

Chungwei Lee, Chairman of SEMI’s SMG and Vice President of GlobalWafers, stated that generative AI and new data center construction have been key drivers for the demand for cutting-edge foundry services and storage devices like HBM.

06. Multiple Analog Chip Companies See Decline in Performance, Industry Looks to 2025 for Recovery

Recently, several analog chip companies, including Analog Devices (ADI), reported declines in revenue and net profit, indicating that market demand has not yet fully recovered. ADI’s Q1 revenue and net profit fell by 4% and 18%, respectively. While the consumer goods sector saw a 19% growth, industrial and automotive business revenues decreased.

The global semiconductor cycle downturn has impacted inventory adjustments, and demand from the Chinese market, particularly the automotive sector, has been a growth driver. Opinions about the market’s recovery in 2025 are divided, with some expressing optimism about a demand rebound, while others believe recovery is still premature. Companies are also adopting strategies such as localized production and the integration of AI technology to promote growth.

Industry Information: Acer, Dell, Intel

07. Acer Announces 10% Price Increase in U.S. Due to U.S. Tariff Policy

In response to the U.S. government's imposition of a 10% tariff on Chinese imports starting February 3, 2025, Acer announced a 10% price increase on its laptops and Chromebooks sold in the U.S. starting in March 2025.

Acer CEO Jason Chen stated that the price adjustment reflects the increased costs due to tariffs. He also mentioned that the company is exploring options to move production out of China and Taiwan. This price adjustment only affects products shipped from China to the U.S. after February 2025.

Other computer manufacturers, such as ASUS, may also adjust prices due to tariffs. For example, ASUS’s ROG Flow Z13 tablet saw a price increase during pre-order.

08. Dell Nears $5 Billion AI Server Supply Deal with xAI, Benefiting Wistron, Foxconn, Inventec, and Shinda

According to Bloomberg, Dell is nearing a $5 billion AI server supply deal with xAI, an AI company founded by Elon Musk. The deal, expected to be delivered this year, will see servers equipped with Nvidia’s GB200 chips.

Wistron is the primary supplier of AI server motherboards (L6) for Dell and also assists in system assembly. Foxconn and Inventec are Dell’s second- and third-largest server manufacturers. Wistron is expanding production in response to clear demand for AI servers and has secured orders for complete machine cabinets (L11), which is expected to boost performance in 2025.

09. Intel's 18A Process Leads, TSMC’s N2 Faces Competition

As reported by TrendForce on February 19, Intel's Chief Engineering Program Manager Joseph Bonetti stated in a LinkedIn post that Intel’s partnership with TSMC was a “mistake,” emphasizing that Intel's 18A process is more advanced. He noted that the first product based on the 18A process, Panther Lake processors, will begin mass production in the second half of 2025, with Microsoft and Amazon confirmed as early adopters.

Bonetti also pointed out that Intel’s 18A process uses PowerVia backside power delivery technology, offering better performance than TSMC’s N2 process. While TSMC’s N2 process has slight advantages in transistor density, Intel's 18A is more competitive in terms of performance and power efficiency. Additionally, Intel has already secured high numerical aperture EUV tool capacity from ASML to support future process development.