01. DeepSeek Surge, Impacting HBM Vendors
The Asian Daily recently reported that Chinese startup DeepSeek has launched a low-cost AI model, "R1," with a development cost of just $5.576 million. The model uses approximately 2,000 NVIDIA H800 AI accelerators, equipped with HBM2E or HBM3 memory. This move has garnered market attention and is expected to increase demand for HBM. Concurrently, the potential for the US to further strengthen sanctions against China could impact the global HBM market landscape, complicating the competitive environment for South Korea's SK Hynix and Samsung Electronics.
South Korean companies are highly vigilant, with Samsung Electronics and SK Hynix closely monitoring DeepSeek's technology. Kim Jae-jun, Vice President of Samsung Electronics' Memory Business Division, stated that they are assessing the impact of DeepSeek. While it may affect high-end HBM sales in the short term, HBM demand is still expected to grow in the long run.
02. Surging Demand for LPU Chips May Redefine the Market
According to a New on February 6, the integration of DeepSeek with domestic LPU chips has resulted in a language model with computational power ten times that of NVIDIA's GPUs. This significant advantage in high-performance computing has led to a surge in demand for LPU chips. DeepSeek's R1 model, which boasts impressive inference capabilities and computational power equivalent to ten times that of NVIDIA's GPUs, has particularly driven this increased demand.
Moreover, the R1 model has performed exceptionally well in international evaluations, ranking third in comprehensive large model benchmarks, further fueling the need for high-performance chips. As AI technology continues to advance rapidly, LPU chips, with their high efficiency and low power consumption, have become a focal point in the market.
03. Rapidus Plans to Install 10 EUV Lithography Machines for 2nm Chip Production in Japan
Rapidus is set to install up to 10 EUV (Extreme Ultraviolet) lithography machines at its Japan-based facilities to begin mass production of 2nm chips by 2027.
According to Rapidus CEO Atsuyoshi Koike, the company plans to equip its IIM-1 and IIM-2 semiconductor production facilities with these advanced EUV machines. The first EUV machine, intended for Japan, is expected to arrive at New Chitose Airport in December 2024, marking a significant milestone in Rapidus' growth and Japan's semiconductor industry revival.
04. Tokyo Electron: AI to Drive Double-Digit Growth in Chip Tool Market
On February 6, Tokyo Electron, a Japanese semiconductor manufacturing equipment supplier, projected that the chip tool market will see double-digit growth next year. This surge is primarily driven by the increasing adoption of AI in smartphones and PCs, which boosts demand for advanced processing machines. CEO Tosbiki Kawai highlighted in an online conference that high-end logic chips for AI smartphones and data centers are expected to drive the advanced chip tool market in 2026, a trend that will further fuel growth for Japanese companies in the market.
05. Intel Collaborates with Japanese Research Institute to Develop Next-Generation Quantum Computer
On February 6, according to the Nikkei, Japan's National Institute of Advanced Industrial Science and Technology (AIST) has partnered with Intel to develop the next generation of quantum computers. The project, which will use Intel chips, is expected to cost hundreds of billions of yen. Scheduled to begin in spring 2025 in Tsukuba, Japan, the goal is to build a system with tens of thousands of qubits by the early 2030s, with computational power more than 100 times greater than current state-of-the-art quantum computers. The quantum computer will be made available for use by domestic and international universities and paying enterprises.
06. TSMC to Raise Semiconductor Prices Amid US Tariffs
TSMC plans to increase semiconductor prices by 15% due to US tariffs on Chinese products. The price hike will start with 7nm chips, and Apple’s cost for a 3nm wafer could rise from $18,000 to $20,000-$23,000. The next round of tariffs on February 18 will cover computer chips and other materials, potentially impacting TSMC. Despite this, TSMC will continue advanced chip production in Taiwan while starting 4nm production in Arizona this year.