01. DRAM Prices Plunge 35.7%, Rattling Market and Investments
The DRAMeXchange report reveals that by November 2024, the average fixed transaction price for general PC DRAM products (DDR4 8Gb 1Gx8) plummeted to $1.35, a 35.7% drop from July's $2.10. This significant decrease, attributed to weak demand and increased supply, is poised to impact the semiconductor industry and related economic sectors.
With demand for IT devices like smartphones and PCs still sluggish, major manufacturers are reducing DRAM inventories. Kiwoom Securities analyst Park Yoo-ak foresees further price drops into early 2025, possibly exceeding current estimates due to persistent weak demand.
02. US Government Awards $99M in Subsidies to Coherent, SkyWater, and X-Fab
The US Department of Commerce has announced preliminary memorandums of terms (PMTs) under the CHIPS and Science Act, proposing $33 million to Coherent, $16 million to SkyWater Technology Foundry, and $50 million to X-Fab in direct funding.
Coherent will use the funds to expand its Sherman, Texas plant, creating the world’s first 150mm indium phosphide (InP) production line to support AI, consumer electronics, and medical applications, expected to generate 70 jobs.
SkyWater will modernize its Bloomington, Minnesota facility, increasing 90nm and 130nm wafer production by approximately 30% and enhancing its ability to support the Department of Defense, estimated to add 70 jobs.
X-Fab will upgrade and expand its Lubbock, Texas silicon carbide (SiC) foundry, the only high-volume SiC foundry in the US, bolstering supply chain resilience and creating 150 jobs.
03. Apple reportedly working with Broadcom on custom AI chip, a boost for ASIC
According to The Information, Apple is developing a custom AI chip, codenamed Baltra, to enhance its AI services and devices. The company is collaborating with Broadcom to incorporate advanced networking technology into the chip, emphasizing Apple's dedication to in-house chip development and focus on AI. The chip is anticipated to be ready for mass production by 2026.
Apple has started to introduce its first generative AI features, known as Apple Intelligence, across its iPhone, iPad, and Mac devices. The company aims to significantly expand its AI capabilities. In addition to this, Apple is investing in its own data centers with custom-designed chips to support advanced AI tasks, ensuring a seamless AI experience across its product ecosystem.
04. Quobly Partners with STMicroelectronics for Quantum Computing
Quantum computing startup Quobly and semiconductor leader STMicroelectronics have teamed up to mass-produce quantum processors (QPUs). This collaboration will use STMicroelectronics' FD-SOI technology to make large-scale quantum computing more practical and affordable, putting both companies at the cutting edge of tech.
Quobly aims to surpass 1 million qubits by 2031 for various applications, from pharma to climate modeling. The partnership will focus on reducing R&D costs and meeting the market's need for accessible quantum computing solutions.
05. Q3 2024: Top 10 Foundries' Sales Hit Record High
The total sales of the top ten global wafer foundries in Q3 2024 reached $34.9 billion, up 9.1% from the previous quarter, a new historical high. This growth was driven by new smartphone and PC launches and strong ongoing demand for AI server-related HPC. Despite no significant economic improvement, increased inventory and capacity utilization in the supply chain contributed to this increase.
TSMC led with $23.53 billion in revenue, nearly 65% market share. Samsung was second with $2.257 billion, but saw a 12.4% revenue drop due to market competition. SMIC was third with a 14.2% revenue increase to $2.2 billion. Other manufacturers like UMC and GlobalFoundries also saw revenue growth at $1.87 billion and $1.74 billion, respectively.
TrendForce expects that while growth may slow slightly in Q4, advanced processes will still drive sales for the top ten foundries, especially with sustained demand for AI and flagship smartphones. Capacity utilization for mature processes is expected to remain stable or slightly increase, despite challenges from uncertain end-market sales.
06. Google's Willow Quantum Chip Drastically Reduces Compute Time
Google has achieved significant progress in quantum technology with its latest chip, Willow, which completes compute functions much faster than traditional machines and significantly reduces errors.
Hartmut Neven, head of Google Quantum AI, reported that Willow performed a standard benchmark computation in under five minutes, a task that would take the fastest current machines 10 septillion years.