01. 33% of European Auto Chip Revenue from China
European automotive chip manufacturers are increasingly reliant on the Chinese market, with key players like NXP and Infineon gaining substantial revenue from China, especially amidst the global EV market's swift growth. NXP's CEO noted the "astonishing growth" in China's EV sector, contrasting with slower industrial markets elsewhere. Similarly, Infineon's CEO acknowledged China's role in their profitability despite a fluctuating global EV market. Texas Instruments has seen up to a 20% growth across all product segments in China, highlighting China's importance in semiconductors.
McKinsey forecasts a $150 billion automotive chip market by 2030, driven by technological advancements in EVs. Although China is a major EV producer, it relies on foreign chips, with domestic manufacturers meeting only about 10% of the demand, offering a ripe opportunity for European chipmakers. Rhodium Group reports that European chipmakers are enhancing cooperation with China, mirroring German automakers' strategies and ensuring market stability.
02. South Korea's Memory Chip Exports Reach $6.8 Billion in July, Down 23% Month-on-Month
According to Korean media reports, South Korea's Information and Communication Technology (ICT) exports reached $19.4 billion in July, marking a 32.8% year-on-year increase and continuing nine consecutive months of growth. The semiconductor industry was the main driver of this growth. During the same period, ICT imports amounted to $12.12 billion, resulting in a trade surplus of $7.28 billion.
Semiconductor exports surged by 49% year-on-year to $11.23 billion, with memory chip exports skyrocketing by 89.0% year-on-year to $6.8 billion. Although this figure represents a decline compared to June, the increase in memory chip prices and growing demand for high-value products such as HBM were the primary factors behind the overall strong performance.
The recovery of the electronics market led to a slight 2% increase in display exports, reaching $1.93 billion. Mobile phone exports soared by 69.4% to $1.23 billion, driven by heightened demand from China and Vietnam. Computer and peripheral exports grew by 51.1% to $1.31 billion, while communication equipment exports fell by 2.4% to $190 million.
Regionally, exports to mainland China and Hong Kong increased by 31.1% year-on-year to $7.92 billion, marking nine consecutive months of growth. Exports to Vietnam grew by 23.7% to $3.12 billion, driven by demand for chips and phones. Exports to the United States rose by 40.1% to $2.42 billion. Exports to the EU increased by 23.5% to $1.01 billion, while exports to Japan fell by 34.7% to $270 million.
03. ASE Expands with Strategic Plant Acquisition
On August 9, ASE Technology announced a strategic acquisition, securing the K18 facility from Hung Ching Development & Construction Co. Ltd. for NT$5.263 billion (around $162 million). This move is a proactive step to bolster ASE's advanced packaging production capabilities in anticipation of growing market demands.
Situated in Kaohsiung City, the expansive K18 plant covers a construction area of approximately 109,089 square meters. Interestingly, the facility was initially developed as the K13 plant by ASE Semiconductor in 2020, under a collaborative agreement with Hung Ching.
04. Samsung to Produce 1γ DRAM Next Year
Samsung Electronics has confirmed an investment plan to build a 1γ DRAM memory production line at its Pyeongtaek P4 plant, which is expected to be put into operation in June next year.
Pyeongtaek P4 is a comprehensive semiconductor production center divided into four phases. In the earlier plan, the first phase was NAND flash memory, the second phase was logic foundry, and the third and fourth phases were DRAM memory. Samsung has introduced DRAM production equipment in the first phase of P4, but has shelved the construction of the second phase.
1γ DRAM is the sixth generation of 20 to 10 nm memory process. So far, 1γ nm products from major memory manufacturers have not been officially released. Samsung Electronics plans to start 1γ memory production by the end of this year, according to reports.
The report pointed out that Samsung Electronics is considering using 1γ DRAM die on the HBM4 memory to be launched in the second half of next year, using a more advanced DRAM process to improve the energy efficiency competitiveness of HBM4 products and catch up with SK Hynix, the leader in the HBM field.
Considering that HBM memory consumes much more DRAM wafers than traditional memory, the construction of the 1γ DRAM production line at Pyeongtaek P4 is also in preparation for possible HBM4 production needs.
05. Apple to Enter Desktop Robotics Market, New Product Could Launch as Early as 2026
Apple is accelerating its push into AI applications and is reportedly developing a desktop robot that integrates an iPad-like display with a mechanical arm. This new product is expected to be part of Apple's smart home ecosystem, combining with the upcoming Apple Intelligence feature, and could hit the market as early as 2026.
Apple has long-standing partnerships with major Taiwanese tech companies such as Foxconn, Compal, Quanta, and Largan Precision. As Apple deepens its AI strategy, the development of the desktop robot is expected to further expand its collaboration with these Taiwanese partners, bringing new business opportunities to Taiwan's supply chain.
According to Bloomberg, Apple has assembled a research and development team of hundreds to actively work on the desktop robot, codenamed "J595." This robot features a large, iPad-like display that can move using the mechanical arm, with actuators allowing for vertical adjustments and 360-degree rotation. The robot will support video conferencing, remote home security monitoring, and voice recognition. It currently runs on a customized version of iPadOS and will eventually integrate Siri and the latest Apple Intelligence capabilities.
06. TSMC Acquires Innolux's Tainan Science Park Plant to Strengthen CoWoS Packaging Technology
On August 15, TSMC announced the acquisition of Innolux's Tainan Science Park Plant 4 for NT$17.14 billion. This strategic move is set to bolster TSMC's capacity in advanced CoWoS (Chip on Wafer on Substrate) packaging technology and could lead to joint development with Innolux in Fan-Out Panel-Level Packaging (FOPLP) technology. Chairman Mark Liu has indicated that TSMC plans to continue expanding production between 2025 and 2026 to meet the strong demand for CoWoS packaging and achieve supply-demand balance.
The acquisition of Innolux's Tainan Science Park Plant 4 will help TSMC address the surge in market demand, particularly during the construction adjustments at its CoWoS packaging plant in Chiayi Science Park. The plant's integration will effectively supplement TSMC's capacity. Additionally, the transformation of Innolux's Tainan Science Park Plant 4 from a panel production line to a semiconductor panel-level packaging technology development center opens up opportunities for further collaboration between TSMC and Innolux in the packaging technology field. This collaboration aims to advance 3D packaging technology for semiconductor miniaturization, achieving a win-win outcome.