01. AI-Driven Growth in Global Chip Market; HBM Revenue Skyrockets 284%
According to Gartner's report, the global semiconductor market is forecasted to expand by 18.8% in 2024, reaching $629.8 billion, outpacing the initial 16.8% growth projection. The surge is primarily attributed to increased AI demand and a rebound in electronics manufacturing, despite sluggish demand in the automotive and industrial sectors.
Memory and GPUs are identified as the main revenue drivers in the near term. Global memory revenue is expected to increase by 20.5% by 2025, totaling $196.3 billion. NAND prices are projected to jump 60% in 2024 due to supply constraints, with a 3% decrease in 2025, aiming for total NAND revenue of $75.5 billion.
DRAM revenue is anticipated to grow from $90.1 billion in 2024 to $115.6 billion in 2025, driven by supply-demand recovery, increased HBM production, and rising DDR5 DRAM prices. The GPU market is also set to grow by 27% in 2025, reaching $51 billion.
Notably, HBM DRAM revenue is projected to experience a dramatic increase of 284% in 2024 and over 70% in 2025, with revenues reaching $12.3 billion and $21 billion, respectively, making it the fastest-growing segment in the semiconductor market.
02. South Korea’s Chip Production Falls for First Time in 14 Months
Data from the Korea International Trade Association's import and export statistics show that from January to September of this year, South Korea's semiconductor storage exports amounted to $51.91125 billion, marking a significant increase of 75.6% year-on-year, although the growth rate has retreated from around 90% at the beginning of the year to 70%. Among these, exports to China amounted to $19.652228 billion, representing a 40.1% increase. Concurrently, South Korea's semiconductor storage exports to Mainland China accounted for 37.9% of the total, falling below 40% for the first time in 12 years. Previously, this proportion had consistently remained above 40% in May, dropped to 39% in June, and has continued to decline.
This change is primarily attributed to SK Hynix's substantial supply of High Bandwidth Memory (HBM) to TSMC, which then uses these HBMs to manufacture AI accelerators for NVIDIA, subsequently supplying them to NVIDIA.
03. Intel Boosts Chengdu Operations with Server Chip Packaging and Testing
Intel has announced an expansion of its Chengdu facility to include server chip packaging and testing services, in addition to its current client product offerings. This move is part of Intel's strategy to meet the increasing demand for high-efficiency, customized server chip solutions in China.
The expansion will also see the establishment of a Customer Solutions Center, designed to boost local supply chain efficiency, enhance support for Chinese customers, and expedite response times. This center will act as a one-stop platform for digital transformation, providing tailored solutions based on Intel architecture and products to accelerate the deployment of industry applications.
Wang Rui, Intel Senior Vice President and Chair of Intel China, emphasized that the expansion will enable Intel to better cater to local needs, integrate resources, and swiftly respond to China's digital and green transitions, thereby contributing to the sustainable growth of the digital economy.
04. Altera Announces Price Hikes for Select FPGA Families Amid Market Pressures
Altera has declared an impending price increase for certain FPGA product families starting November 24, 2024, due to escalating market pressures and operational costs. This decision is aimed at ensuring a consistent supply of products and sustaining Altera's commitment to customer support and a comprehensive FPGA solution portfolio.
The price revisions will apply to all new orders, quotes, and shipments effective from the specified date, ensuring the company can continue to invest in product longevity and stable supply chains. The detailed adjustments are as follows:
·A 7% increase for Cyclone® 10 GX/LP, Cyclone® V, Cyclone® IV, MAX® 10, and MAX® V.
·A 10% increase for AgilexTM 7, AgilexTM 9, Stratix® 10, and Arria® 10.
·A 20% increase for all Stratix® V, Stratix® IV, Stratix® III, Arria® V, Arria® II, Cyclone® III, Cyclone® II, MAX® II, and EPCQ-A.
These price adjustments are in line with Altera's strategy to maintain a competitive edge in the FPGA market by optimizing supplies and ensuring the sustainability of its product lines for the long term.
05. TSMC Announces 2025 Price Adjustments, Exceeding Previous Forecasts
TSMC has announced its 2025 foundry price adjustment plan, with rates for its 5nm, 4nm, and 3nm processes set to increase by about 4%, exceeding earlier estimates. The company also plans to raise prices for high-performance computing (HPC) products by 8% to 10% and adjust rates for mobile communication clients by approximately 6%. The announcement has garnered significant attention within the industry.
As a leading global semiconductor manufacturer, TSMC's pricing adjustments are expected to have a major impact across the sector. The higher-than-expected increases reflect the company’s efforts to manage rising operational costs, technological upgrades, and shifts in market demand, particularly within its advanced 5nm, 4nm, and 3nm segments, where TSMC maintains a strong market position but faces cost and technology challenges.
06. OpenAI Partners with Broadcom to Develop AI Chips, Reducing Reliance on NVIDIA
Reuters reported on October 30th that OpenAI is collaborating with Broadcom to develop custom AI inference chips to handle its large-scale AI workloads, particularly inference tasks. To this end, OpenAI has assembled an R&D team of about 20 members, including a lead engineer with experience in Google's Tensor processor project. Broadcom will assist with chip design, and TSMC will be responsible for manufacturing, with production expected to start in 2026. OpenAI had previously planned to establish its chip foundry to diversify its supply chain but has shelved the plan due to cost and time considerations, now focusing on in-house chip design.