Semiconductor market news(Aug. 14 to Aug. 20)丨Semiconductor industry is expected to recover in 2024; TSMC lowers foundry quotes to reflect lackluster demand…

01. Semiconductor industry is expected to recover in 2024

August 16, 2023, According to the Semiconductor Manufacturing Monitor report released by SEMI in cooperation with TechInsights, the global semiconductor industry is nearing the end of the down cycle and is expected to start recovering in 2024 as the sequential decline in IC sales begins to slow.

02. Thirteen new 300mm wafer fabs will be put into production in 2023

August 14, 2023, According to Knometa Research, 13 new 300mm fabs will be put into operation in 2023. These new fabs will mainly produce power transistors, advanced logic chips and foundry services.

As shown in the figure above, of the 13 300mm fabs that will open in 2023, 5 focus on the production of non-IC products, of which 3 are located in China and 2 are located in Japan.

The report pointed out that by the end of 2022, there were 167 semiconductor factories in the world processing 300mm wafers, including non-IC products such as CMOS image sensors and power discrete devices.

Due to budget cuts in 2023, some fabs originally scheduled to start in 2024 may be delayed until 2025.

According to Knometa's 2023 global wafer capacity study estimates, by 2027, more than 230 300mm wafer fabs are expected to be in operation.

03. Samsung plans to suspend part of NAND flash memory production at Pyeongtaek fab

August 15, 2023, According to industry sources, Samsung is currently considering stopping part of the production of the NAND Flash production line of the P1 factory, which is mainly responsible for the production of 6th-generation V-NAND with 128-layer stacking. The production cuts will last at least a month, but could be extended into the second half of 2023.

At present, Samsung has reduced wafer investment in major NAND Flash production bases, including Pyeongtaek and Hwaseong in South Korea and Xi'an in China.

The industry estimates that Samsung's NAND Flash output may decrease by about 10%.

04. Samsung will produce over-300-layer 3D NAND chips in 2024

To solidify its leading position in the NAND flash market, Samsung Electronics reportedly plans to again utilize a double-stack technology for manufacturing 3D NAND over 300 layers, aiming to surpass competitors with a production cost advantage.

05. TSMC lowers foundry quotes to reflect lackluster demand, say sources

TSMC has lowered its foundry quotes for the next few quarters due to a lack of order visibility and order momentum from customers, according to industry sources.

06. 2023 Server Shipment Forecast Downgraded to 5.94% YoY Decline

TrendForce announces a revised forecast for 2023 server shipments, protecting a downward shift of 5.94% YoY. This downward revision is attributed to various economic challenges, including Meta’s diminished demand for 2H23 and a sluggish start in China’s internal tech demand in 1H23 (including state-owned cloud and East-West computing projects).

This shift highlights the larger economic pressures of inflation globally. CSPs are reshaping their strategies, leaning more into AI investments. Such a pivot, while innovative, has inadvertently led to a squeeze in the budget for traditional server shipments, affecting the tech market landscape.

Notably, server shipments in the third quarter are expected to show slight growth compared to Q2. However, a subsequent decline is expected as the year edges into its final quarter.

07. BYD Closes In on Tesla in Q2 BEV Sales, with Surges Noted in Thailand and Australia

TrendForce reports that in 1H23, NEV sales—which encompass battery electricity vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs)—soared to an impressive 5.462 million units, reflecting a growth of 33.6% YoY. Specifically, Q2 sales reached 3.03 million units, a 42.8% YoY surge, constituting 14.4% of total car sales for the period, and playing a pivotal role in 1H23 growth.

While major markets including China, Western Europe, and the US continue to dominate NEV sales, emerging players like Thailand and Australia have made significant strides in 2023. Both nations exceeded 35,000 units in sales in 1H23, with Thailand quadrupling its 2022 figures and Australia experiencing a fivefold increase.

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