01. TrendForce: Q3 DRAM Revenue Leaps 13.6% to $26B
TrendForce reports a 13.6% increase in global DRAM revenue for Q3 2024, reaching $26 billion, driven by data center demand for DRAM and HBM. Despite this, LPDDR4 and DDR4 shipments fell due to inventory reductions by Chinese smartphone brands and increased domestic production.
ASPs rose by 8-13% QoQ, influenced by HBM production shifts. Q4 shipments are expected to grow, but HBM production limits may cap price increases. Chinese supplier capacity expansions could lead to inventory reductions by PC OEMs and smartphone brands, affecting DRAM pricing.
Samsung topped with a 9% revenue boost to $10.7 billion, SK Hynix grew 13.1% to $8.95 billion, and Micron jumped 28.3% to $5.78 billion on strong server DRAM and HBM3e sales. Nanya Technology and Winbond Electronics faced headwinds with shipments and revenue declines due to weak consumer DRAM demand and DDR4 competition. Powerchip Semiconductor Manufacturing's DRAM revenue increased 18% despite a 27.6% drop in shipments.
Q3 DRAM market growth is strong but faces challenges, including capacity constraints and heightened competition in consumer DRAM.
02. Germanys €2B Subsidy to Boost Domestic Semiconductor Industry
The German government plans to allocate €2 billion in subsidies to bolster its semiconductor sector, supporting 10-15 projects including raw wafer production and microchip assembly, as stated by Annika Einhorn from the Ministry of Economic Affairs. This funding is intended to advance manufacturing beyond current tech standards and aligns with the European Chips Act, which allocates €3.3 billion to enhance EU semiconductor capabilities and reduce external dependency.
Despite global competition with larger investments from the U.S., China, and South Korea, Germany's move is crucial for maintaining a competitive and resilient chip ecosystem in Europe. Analysts suggest Europe should focus on power semiconductors and local production of chip-making equipment and materials. This initiative follows Intel's pause on a €30 billion chip plant in Magdeburg, underscoring the challenge of attracting major semiconductor investments to the region.
03. Microchip Closes Arizona Facility, Affects 500 Workers
Microchip Technology Inc. has revised its Q3 revenue forecast downward and announced the closure of its Fab 2 in Tempe, Arizona, by September 2025, impacting 500 employees. The closure comes amidst a slowdown in automotive chip orders due to reduced excess inventory from automakers in a context of economic uncertainty. The company's December quarter revenue is now expected to be around $1.03 billion. Fab 2, an 8-inch wafer fab with a monthly output of 20,000 wafers, supports tech nodes from 1μm to 250nm. Microchip operates additional facilities in Oregon, Colorado, and Massachusetts.
04. Vishay Pumps £51M into NWF Wafer Fab Upgrade
Vishay Intertechnology, a leading manufacturer of discrete semiconductors and passive components, has pledged £51 million to upgrade the Newport Wafer Fab (NWF) in Wales, acquired by the UK government from Nexperia. Backed by an additional £5 million from the Welsh government, the funds will establish a new power device production line and shift towards silicon carbide (SiC) power devices, expanding beyond the site's previous role as a small gallium nitride (GaN) device foundry.
05. TSMC, Samsung, SMIC Dominate 2024 Foundry Rankings
Q3 2024 global wafer foundry rankings highlight TSMC, Samsung, and SMIC, with revenues growing 27% YoY and 11% QoQ due to AI demand and Chinas market recovery. TSMC leads with a 64% share, driven by advanced nodes and AI accelerators. Samsung, with a 12% share, is targeting 2nm production by 2025, focusing on mobile and AI. SMIC and HuaHong capitalize on Chinas market rebound, with SMIC seeing increased 12-inch wafer output. Despite competition, TSMC and Samsungs market grip remains strong, while SMIC and HuaHong eye global expansion. The industry faces profit challenges from mature node rivalry.
06. HPE Exceeds Q4 Estimates with AI Server Boom
Hewlett Packard Enterprise (HPE) reported better-than-expected fourth-quarter revenue and profit, driven by robust demand for AI servers. Enterprises are investing in HPE servers with Nvidia processors to handle the data loads for training AI models, maintaining healthy demand. HPE's Intelligent Edge business, which includes networking hardware like switches and Wi-Fi access points, saw a 20% revenue drop to $1.12 billion but is improving. The company also acquired Juniper Networks this year to strengthen its competitive position in the networking equipment market.