01. H20 frenzy reignites: NVIDIA rushes 300k-wafer rush order to TSMC for restock
On August 6, SemiMedia reported that the number of suspected counterfeit electronic component cases reported to ERAI reached 1,055 in 2024, up by 25% year-on-year and the highest level since 2015. The increase was driven by the 248 counterfeit fan modules discovered by the US government in May. Analog ICs, microprocessors, memory ICs, and programmable logic ICs remained the most frequently counterfeited categories. In 2024, 27% of the counterfeit components were still in production, and in-production components that are easily obtainable were reported more frequently. The report noted that 85.2% of the flagged components were reported for the first time. ERAI warned that any components sourced from non-authorized supply chain channels should be subject to equally stringent scrutiny.
02. DRAM Prices Double, Market Fluctuations Intensified by CXMT Shutdown Expectations
On August 7, it was reported that the prices of DRAM benchmark products had doubled within a month, mainly due to the shutdown expectations of CXMT (Changxin Memory Technologies). The Chinese governments push for semiconductor self-sufficiency led CXMT to plan a shift towards high-end products, exacerbating market supply concerns.DRAM is widely used in PCs and smartphones, with DDR4 and DDR5 being the main products. In June, the prices of 8GB DDR4 and 4GB DDR4 both doubled from the previous month.CXMT has launched DDR5 and plans to ramp up production, with full-scale production expected in the second half of 2025 and DDR4 to be phased out in the first half of 2026. In the global DRAM market, Samsung, SK Hynix, and Micron hold 90% of the market share and are shifting towards DDR5 and high-bandwidth memory (HBM).The current market supply is tight, with buyers rushing to purchase and sellers gaining the upper hand in negotiations. If high prices persist, they may affect the prices of end products.
03. TI Quietly Hikes Prices on Over 60,000 Products
Recently, TI (Texas Instruments) notified some customers of price increases, involving over 60,000 product part numbers, with price hikes ranging from less than 10% to over 30%. This round of price increases is much larger in scale and intensity than the one on June 2, with higher price increases in the industrial and automotive sectors. However, some automotive customers and industrial customers within the annual negotiation cycle were not affected.The price increases by TI are the result of multiple factors. On the one hand, the analog chip industry, which had experienced high inventory and price wars, began to recover at the beginning of this year. TIs financial report showed that revenues for Q1 and Q2 increased by 11% and 16% year-on-year, respectively. On the other hand, the continuous rise in chip costs and operating costs led TI to raise prices to absorb the cost pressure and maintain gross margin levels. Additionally, geopolitical and market dynamics also influenced TIs pricing decisions.
04. Qualcomms Smartphone Chip Sales Miss Expectations, Recovery Outlook Questioned
On August 4, it was reported that Qualcomm's revenue from smartphone-related business grew by 7% to $6.33 billion in the third quarter of its fiscal year ending June 29, falling short of the analysts' average expectation of $6.48 billion. This result has sparked concerns over whether the chip industry's recovery can be sustained, especially after Texas Instruments and Intel issued cautious outlooks. For the September quarter, Qualcomm expects revenue between $10.3 billion and $11.1 billion, while analysts had previously forecast $10.6 billion. In terms of diversification, automotive chip revenue grew by 21% to $984 million, and IoT-related chip sales increased by 24% to $1.68 billion, showing potential for growth outside its core mobile business. However, Qualcomm still faces the long-term challenge of Apple's push for in-house modem development. Despite some delays, Apple has already used its own modem in the low-end iPhone 16e.
05. TSMC Asked to Invest $300 Billion in the US or Acquire 49% Stake in Intel
On August 5, President Trump told CNBC that TSMC (Taiwan Semiconductor Manufacturing Company) plans to invest $300 billion in the US. Previously, TSMC had announced plans to invest $165 billion in wafer and packaging plants in Arizona, US. However, the amount mentioned by Trump far exceeds the previous plan, sparking speculation about whether TSMC will make further investments. Taiwanese media revealed that the US side has proposed two conditions for TSMC to choose from: either take a 49% stake in Intel or invest an additional $40 billion. Both options are highly challenging, especially since Intel is currently lagging in technology and suffering continuous losses. TSMC Chairman Mark Liu has previously stated that the company has no plans for joint ventures or technology transfers.
06. GlobalWafers Partners with Apple, Supplies from New Texas Plant
On August 7, GlobalWafers announced that its US subsidiary, GlobalWafers America LLC (GWA), has established a new supply chain partnership with Apple to further strengthen the US semiconductor manufacturing supply chain. GWA will collaborate with Apple to meet the demand for 12-inch advanced silicon wafers produced at its new plant in Sherman, Texas. As the only silicon wafer supplier participating in the US "CHIPS Act," GWA is helping to rebuild the US chip manufacturing supply chain. GlobalWafers Chairman Doris Hsu said that the silicon wafers produced by GWA will be used in products such as iPhones and iPads, and expressed delight in partnering with Apple to drive the US semiconductor manufacturing industry to new heights. Apple's COO Sabih Khan said that this partnership is part of the $600 billion investment commitment to the US over the next four years, aimed at creating more jobs and bringing manufacturing back to the US.