01. DRAM Prices Experience First Dip in 18 Months Amidst Weak PC and Smartphone Demand
For the first time since March 2023, DRAM prices recorded a decline in September 2024, as reported on October 21st. This downturn is attributed to a weakened demand for PCs and smartphones. The bulk transaction prices for DDR4 8GB and 4GB memory chips dropped by 3%, with the 8GB variant retailing at $2.04 and the 4GB at $1.57 each. PCs and servers constitute 50% of the DRAM market demand, with smartphones contributing an additional 35%. The global year-on-year decrease in PC shipments by 2.4% has consequently led to a notable decrease in DRAM demand. Market speculation suggests that potential large-scale investments by Chinese DRAM manufacturers could lead to an increased supply, which may further drive prices down in the future.
02. Global Silicon Wafer Shipments to Dip 2.4% in 2024, Expected to Rebound by 10% in 2025
SEMI's annual forecast, released on October 22, projects a mild 2.4% decrease in global silicon wafer shipments for 2024, amounting to 12.174 billion square inches. This modest decline follows a more substantial 14.3% reduction in 2023 and is expected to be a temporary setback. The industry is poised for a strong recovery in 2025, with shipments expected to increase by 10% to 13.328 billion square inches. SEMI's outlook suggests that silicon wafer shipments will continue to grow robustly until 2027, spurred by the rising demands of AI and sophisticated process technologies, which will in turn boost the global semiconductor manufacturing capacity. Additionally, emerging applications in advanced packaging and HBM memory production are expected to further amplify the demand for silicon wafers.
03. ROHM and Denso Explore Strategic Partnership in Semiconductor Sector
ROHM Semiconductor and Denso Corporation are exploring a strategic partnership to enhance their collaboration in the semiconductor industry, driven by the increasing demand for electronic components essential for electric vehicles' (EVs) push towards carbon neutrality. Building on their history of joint development in automotive semiconductors, the partnership aims to secure a stable supply of high-quality semiconductors and foster innovations for sustainable mobility solutions. Denso is planning to acquire a stake in ROHM as a step to consolidate this collaboration, with further partnership details still being discussed.
04. Texas Instruments Anticipates Order Recovery and Increases Fab Investments
Texas Instruments (TI) has indicated that the current reduction in customer inventory levels signals a positive time for order recovery. CEO Haviv Ilan has observed the beginning of a rebound in the company's primary markets after eight quarters of revenue decline, despite the industrial and automotive chip sectors still grappling with excess inventory.
TI projects its fourth-quarter sales to be within the range of $3.7 billion to $4 billion. In line with its strategy to increase in-house production, the company is making significant investments in new fabrication facilities. Although these investments have temporarily affected short-term profits, TI anticipates that the new fabs will ultimately confer a cost advantage over its competitors upon completion.
05. Hemlock Semiconductor Receives $325M for Michigan Plant to Boost US Semiconductors
Hemlock Semiconductor is set to construct a new hyper-pure polysilicon production facility in Saginaw County, Michigan, backed by a $325 million investment from the Biden administration. This substance is vital for the manufacturing of electronics and solar panels, and the project is anticipated to generate 180 direct manufacturing jobs with additional construction positions.
Funded as part of the 2022 CHIPS and Science Act, this initiative is designed to strengthen the U.S. semiconductor industry and reinvigorate domestic manufacturing capabilities, as emphasized by Commerce Secretary Gina Raimondo. The construction is scheduled to commence in 2026, with production targeted to start by 2028, underlining the administration's focus on economic strategy over political considerations in a key electoral state.
Hemlock plans to begin construction in 2026, with production set to start by 2028. The administration emphasized that the funding decision was driven by economic priorities rather than political timing, as Michigan remains a critical state in national elections.
06. Tesla Seeks Massive eSSD Order from SK Hynix
On October 25th, Trendforce reported that Tesla is in deep negotiations with SK Hynix to procure enterprise solid-state drives (eSSDs) valued at approximately $725 million (about 1 trillion won). This reflects Tesla's demand for high-performance storage devices to support its expansion in the field of artificial intelligence. As a core component of AI chips, eSSDs are crucial for rapidly processing vast amounts of data. Tesla CEO Elon Musk has previously stated that the company invests about $10 billion annually in artificial intelligence servers and semiconductors to enhance AI technology needed for autonomous driving and humanoid robots. SK Hynix's subsidiary, Solidigm, has developed the industry's highest-capacity 60TB eSSD, and these high-performance storage devices will help Tesla advance its Dojo supercomputer project for more efficient AI training and inference.