These are the most read DIGITIMES Asia articles for the week from September 30th to October 6th.
Samsung postpones construction of Taylor and Pyeongtaek factories due to global semiconductor slowdown
Due to global economic challenges, intensifying competition, and declining profitability of memory chips, Samsung Electronics has decided to postpone the construction and equipment expansion of its fourth plant in Pyeongtaek, South Korea (P4), and its second facility in Taylor, Texas (T2). Orders are being delayed. The postponement will impact suppliers and investment schedules, with Taylor’s first factory expected to be completed by 2026.
Samsung is reevaluating its expansion plans in light of weak demand for memory chips, while also facing layoffs and operational adjustments, some of which are due to regular employee rotations. It is considered a thing.
How China is accelerating advanced packaging with HBM and CoWoS amid tightening US regulations
Advances in AI chips rely on packaging technologies such as CoWoS and HBM, but US export restrictions on high-performance computing chips are impacting Nvidia’s supplies to China. As a result, China is pushing ahead with developing its own advanced packaging capabilities, even as it faces challenges. Large companies such as TSMC and Intel benefit from front-end expertise and dominate the market. Although Chinese companies such as JCET and Tongfu Microelectronics are investing in advanced packaging, they still lag behind their international competitors and need significant technology improvements to catch up.
Novatec plans to mass produce OLED TDDI in the second quarter of 2025. Apple expected to be first customer
Novatek, Taiwan’s leading display driver IC (DDI) manufacturer, plans to begin mass production of OLED TDDI technology by the second quarter of 2025, poised for significant market growth. There is speculation that Novatek could become a major supplier of Apple’s next-generation iPhone displays, giving the company a major boost in market share and Apple’s supply chain. OLED DDI is expected to have a market penetration rate of over 50% by 2024, and major brands are expected to adopt OLED TDDI by 2025. While Novatec is expanding its business with Chinese panel makers, it faces competition, particularly from Korean suppliers.
Micron’s HBM capacity to operate at full capacity through 2025, poised for billions of dollars in revenue growth
Micron is leveraging the growing demand for AI-driven data centers and predicts the high-bandwidth memory (HBM) market will exceed $25 billion by 2025. The company reported a 93% year-over-year increase in revenue for the fourth quarter of fiscal 2024. Sales of DRAM and HBM are strong.
Micron’s 2024 and 2025 HBM production capacity is full and we have begun offering 36GB 12-layer HBM3E to partners for AI validation. Micron is expanding globally, building new factories in the U.S., India and China, and converting a facility in Taiwan to DRAM production to meet growing demand for AI and data centers.
Intel adopts TSMC 3nm to protect PC dominance
Intel’s new Core Ultra 200V processor family, codenamed Lunar Lake, is manufactured using TSMC’s 3nm process and changes the power consumption of x86 architectures. Facing fierce competition and restructuring challenges, Intel aims to protect its leadership in the PC processor market by outsourcing production to TSMC.
Lunar Lake processors significantly improve battery life, surpassing Apple’s M2 and M3 chips and delivering over 20 hours of battery performance in notebooks from brands like Asustek and MSI. With this improvement, Intel is expected to regain lost market share. The chip features Intel’s Foveros packaging technology and advanced microarchitecture, positioning Intel to compete with ARM-based devices and recover in the AI PC space.
Penang semiconductor cluster overview: PCB, focus on backend
Penang, Malaysia, has emerged as an important semiconductor hub, especially for PCB and back-end supply chains, due to the US-China trade war. Major OSAT companies, including ASE Technology, are relocating production from China, with Penang being a priority location for expansion. Intel and other global technology companies have long established operations there, and new investments are increasing. The region offers affordable labor, an English-speaking workforce and political stability, making it a strategic winner as companies shift supply chains from China to Southeast Asia. Penang is expected to play an important role in the growing semiconductor market.
