China's memory industry is making remarkable progress, substantially closing the technology gap with South Korea in DRAM and NAND flash manufacturing. The country has also achieved significant breakthroughs in high-bandwidth memory (HBM), a critical component for AI-driven computing.
In the latter half of 2024, global demand for silicon wafers began to rebound from the industry's downturn experienced in 2023, as reported by the SEMI Silicon Manufacturers Group (SMG) in its year-end assessment of the silicon wafer sector.
SK Hynix is reportedly expanding its production of fifth-generation, 12-layer HBM3E, with Hanmi Semiconductor and ASMPT expected to lead in equipment orders. Hanmi is set for growth in the expanding market, fueled by increased Micron investment in HBM. However, the rise of DeepSeek could create uncertainties in the HBM market, potentially affecting equipment demand.
Samsung Electronics' semiconductor head Young-Hyun Jun reportedly met with Nvidia CEO Jensen Huang in the US, fueling speculation that Samsung is advancing its bid to supply HBM3E memory. Industry sources suggest the visit signals that Samsung's 8-layer HBM3E could soon pass Nvidia's quality certification.
SK Hynix has reportedly appointed Vice President Woong-sun (William) Lee to head its newly established semiconductor packaging facility in the US. His leadership will be closely watched as the company navigates intensifying market competition.
Chip manufacturers are actively promoting price rises in the second quarter, leading to an expected rise in DRAM and NAND flash prices during this period.
The DRAM market is shifting as falling prices due to weak demand prompt top players like Samsung Electronics, SK Hynix, and Micron to adjust their strategies. These companies are pivoting toward DDR5 and high-bandwidth memory (HBM) and may phase out DDR3 and DDR4 by 2025, anticipating a future focused on advanced memory technologies.
Taiwan's total IC industry output value—including IC design, IC manufacturing, IC packaging, and IC testing—was NT$1.49 trillion (US$45.5 billion) in the fourth quarter of 2024, up 8% quarter-over-quarter and 24.2% year-over-year, according to Taiwan's Industrial Technology Research Institute's Industrial Economics and Knowledge Center (IEK).
Nippon Electric Glass (NEG) is increasing its production of carrier glass for advanced memory and semiconductor packaging due to the growing demand for generative AI, which has boosted sales of glass materials used for support in semiconductor processes. The company plans to enhance capacity at its Shiga Prefecture factory in Japan.
Kioxia has projected a return to profitability for fiscal 2024 (April 2024 - March 2025). However, its capex is expected to decrease by approximately 25% year-over-year in response to the accumulation of NAND Flash inventory.
Recent industry reports reveal that Micron is preparing to begin mass production of its 12-layer HBM3E memory for Nvidia, potentially creating significant pressure on Samsung Electronics as it struggles to keep pace with this advancement, which could impact its memory business.
Mexico launched the "Kutsari Project" to transform its semiconductor sector by improving design capabilities, revising patent laws, and establishing dedicated R&D centers. This initiative comes as global semiconductor competition intensifies, and Mexico lags despite significant commitments, necessitating swift advancement.
Macronix International, a Taiwan-based manufacturer of mask ROM and flash memory, is strengthening its competitive product portfolio while anticipating its in-house developed 3D NOR chips to bolster operations starting in 2026.
AUO has agreed to sell the Taichung facilities of its subsidiary, AUO Crystal, to Micron Technology. This is the second time the panel maker has sold assets to the memory vendor.
ChangXin Memory Technologies (CXMT) has accelerated its next-generation DRAM development, transitioning from 17nm to 16nm process technology for its first DDR5 product, according to TechInsights. The company is also advancing 15nm DRAM, with plans to complete R&D by 2025 and begin mass production in late 2026.
Samsung Electronics' foundry unit is set to ramp up production, lifting shutdown measures on its manufacturing equipment and targeting full operational capacity at its Pyeongtaek facility by June 2025, according to industry sources.
Samsung Electronics plans to convert part of its 3D NAND production at its Xi'an plant in China to the company's most advanced 286-layer stacked products.
The PC market is expected to show weak performance in the second half of 2024, but the industry remains optimistic about replacement demand in 2025. The introduction of PCIe Gen5 in high-end models is set to begin in Q2 2025, with a projected penetration rate of 5% for the year. Growth will further accelerate in 2026, with the overall penetration rate reaching 20-30%.
Micron Technology has launched the bidding process to secure a construction partner for the second phase of its ATMP project, as the first phase of its Indian ATMP facility faces delays, challenging India's goal of timely producing its first domestically manufactured chip.
Major South Korean companies saw their revenue from the North American market increase by around 20% in 2024, with high-bandwidth memory (HBM) market leader SK Hynix seeing the largest growth. However, potential new tariffs under consideration by US President Donald Trump, including a 25% tariff on all steel and aluminum imports and new tariffs on semiconductors, could come as a significant blow if imposed.
China's ChangXin Memory Technologies (CXMT) is emerging as a formidable player in the global DRAM market, potentially challenging Samsung Electronics and SK Hynix's market dominance. This development bears striking similarities to South Korea's disruption of Japan's memory industry decades ago.
South Korean memory maker SK Hynix saw its exports of multi-chip packages (MCP) fall by nearly 30% sequentially in January 2025. At the same time, some analysts believe that after two years of rapid growth, high-bandwidth memory (HBM) is becoming more sensitive to seasonal demand changes.
Chinese AI startup DeepSeek has demonstrated a cost-effective approach to high-performance AI, potentially disrupting SK Hynix and Samsung Electronics' positions as key suppliers of high-bandwidth memory (HBM) for Nvidia. This development has prompted both companies to consider strategic shifts, with industry observers closely monitoring the situation.
Following production cuts by NAND flash manufacturers and the resolution of inventory destocking issues in China's sector, industry supply chain sources indicate that NAND spot pricing has begun to increase after the Lunar New Year holiday.