Semiconductor market news(Oct. 16 to Oct. 22)丨US chip restrictions spark panic in China for Nvidia’s RTX 4090 graphics card; Q4 DRAM Contract Prices Set to Rise

01. Q4 DRAM Contract Prices Set to Rise

TrendForce reports indicate a universal price increase for both DRAM and NAND Flash starting in the fourth quarter. DRAM prices, for instance, are projected to see a quarterly surge of about 3-8%. Whether this upward momentum can be sustained will hinge on the suppliers' steadfastness in maintaining production cuts and the degree of resurgence in actual demand, with the general-purpose server market being a critical determinant.

02. US chip restrictions spark panic in China for Nvidia’s RTX 4090 graphics card

New US semiconductor restrictions have caused panic among Chinese consumers for Nvidia's GeForce RTX 4090 graphics card. The restrictions have led to major partners in China, including Alibaba and, removing stock of the graphics card from their online stores. As a result, the price of the graphics card has skyrocketed on third-party online stores, nearly tripling Nvidia's recommended retail price.

03. New Sanctions to Slash China’s Demand for High-End AI Servers to a Mere 3–4% in 2023

October 17th brings a new round of developments in the ongoing chip war between US and China as the Department of Commerce issued another update to its export control regulations. This time, the update included the targeting of sectors such as semiconductor manufacturing equipment and HPC chips (primarily AI chips) as well as the addition of two new companies onto the Entity List. TrendForce points out that a significant change is the formal inclusion of the NXT:1980Di—which was previously in a grey area—into the list of controlled items. However, since ASML has already been green-lit for shipments post-application, the immediate ripples from this move remain to be seen.

Conversely, the landscape for HPC chips is set for a shake-up, as the current ban expands control over the A800, H800, and L40S series. This development is poised to see China’s tech giants—ByteDance, Baidu, Alibaba, and Tencent (BBAT)—curb their appetite for NVIDIA’s high-end AI servers from 5–6% of the global AI server market to a scant 3–4%.

04. Infineon Signs Semiconductor Supply Deal With Hyundai, Kia

Infineon Technologies said it has signed a multi-year supply agreement for power semiconductors with Hyundai Motor and Kia lasting until 2030.

The German chipmaker said Wednesday that it will build manufacturing capacity to supply silicon carbide and silicon semiconductors, and that the South Korean automakers will support it with financial contributions.

The partnership will allow Hyundai and Kia to stabilize their supply of semiconductors while also consolidating their position in the global electric-vehicle market, said Heung-soo Kim, executive vice president and head of global strategy office at Hyundai.

05. World's biggest battery maker CATL earnings miss as EV sales dip

Contemporary Amperex Technology Co. Ltd., the world's biggest battery maker, posted third-quarter net income and revenue that missed estimates as a slight cooling of demand for electric vehicles on its doorstep, a price war and rising competition in.

06. AMD is said to lay off in Shanghai

October 20, 2023, According to industry insiders, AMD Shanghai will lay off about 10%-15% of its employees, with the number of employees reaching four to five hundred.

AMD Shanghai R&D Center was established in 2006 and is AMD's largest R&D center outside the United States, with a total of approximately 3,000 employees. The center is mainly responsible for the design, development and testing of CPU, GPU, APU and other products. It has contributed many innovative technologies and products to AMD, such as Ryzen series processors, Radeon series graphics cards, etc.

AMD Shanghai employees said that the rumors of layoffs should be true, but the scope and number of people are not as large as the rumors.

07. Chip distributors Ryoyo Electro and Ryosan announce merger

According to the chip supply chain, Japanese chip distributors Ryoyo Electro and Ryosan announced that they will establish a joint holding company, Ryosan Ryoyo Holdings (HD), on April 1, 2024. After the merger, the two companies aim to achieve group sales of 500 billion yen (approximately US$3.342 billion) and operating profit of 30 billion yen (approximately US$200 million) in fiscal 2029.

Ryosan Ryoyo HD will become the wholly-owned parent company of Ryoyo Electro and Ryosan through a share transfer. The head office will be located in Chuo-ku, Tokyo, with Moritaka Nakamura, President of Ryosan Ryoyo Electro, as President, and Kazuhiko Inaba, President of Ryosan, as Vice President.

Ryoyo Electro and Ryosan will be delisted on March 28, 2024, and Ryosan Ryoyo HD will be launched on the Tokyo Prime Market on April 1, 2024. After the merger, the two companies will compete in the distribution market with distributors Macnica Holdings (HD), Kaga Electronics (Kaga Electronics) and Lester HD.

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