01. Japan $1.3B Boost for Rapidus 2-nanometer Chip Production

SemiMedia reported on November 25th that Japan will invest ¥200 billion ($1.3 billion) in Rapidus by 2025 to back its 2-nanometer chip production target for 2027. The investment is designed to draw additional private capital and strengthen governmental involvement in the company. The total cost for 2-nanometer chip production is projected at ¥5 trillion, with the government pledging ¥920 billion in subsidies, leaving a funding shortfall. The government intends to bridge this gap through debt guarantees and investments from state institutions, details of which will be revealed in the upcoming economic stimulus package. Japan aims for Rapidus to drive a semiconductor industry resurgence and establish a foundation for future tech competitiveness through this multifaceted financial approach and active corporate governance.

02. 3Q24 NAND Flash Revenue Rises 4.8% Amid Divergent Price Trends

TrendForce’s survey reveals a 2% drop in NAND Flash shipments in 3Q24, offset by a 7% increase in ASP, leading to a $17.6 billion revenue, up 4.8% sequentially. Price trends varied by segment; enterprise SSDs saw robust demand, with nearly a 15% ASP increase, while consumer SSD orders waned. Chinese smartphone brands’ low inventory strategy curbed NAND Flash orders, keeping prices stable. Wafer prices fell due to weak retail demand. For 4Q24, the industry anticipates challenges with stable enterprise SSD prices and declining prices for other products. Consumer brands’ inventory reduction is expected to decrease orders, with a projected nearly 10% revenue drop sequentially.

03. SK Hynix Launches World’s First 321-Layer NAND Flash for Enhanced Performance

SK Hynix has commenced mass production of the world’s first 321-layer 1Tb TLC 4D NAND flash memory, marking a significant leap in stacking technology and manufacturing efficiency. Aimed at fulfilling the increasing demand for energy-efficient, high-performance storage solutions driven by AI, the product is scheduled for customer delivery by mid-2025.

The new 321-layer NAND offers a 12% faster data transfer speed and a 13% better read performance compared to the previous 238-layer model, with a more than 10% improvement in read energy efficiency. SK Hynix introduced a “3-Plug” process during development, which optimizes electrical connections through a three-step through-hole procedure. The product also features low-deformation materials and automated alignment correction technology, drawing on the 238-layer platform to minimize process changes and enhance production efficiency by 59%.

This achievement heralds the industry’s move into the 300-layer-plus NAND flash era, positioning SK Hynix to bolster its competitive position in AI data center SSDs and edge AI markets.

04. ST Sees MCU Sales Dip in 2024 Due to NCNR Contracts

ST reported a significant decline in MCU sales for the first nine months of 2024, partly attributed to non-cancellable, non-reschedulable (NCNR) contracts from 2022 and 2023, leading to excessive customer inventories. The company’s MCU sales were approximately $2.58 billion, a 41.3% decrease compared to $4.4 billion in the same period of 2023. CEO Jean-Marc Chery indicated that 2025 will be a transition year, with a broader inventory correction expected to continue into the first half of 2025. Despite challenges, initial recovery signs have emerged, with the book-to-bill ratio for MCU sales exceeding 1.0 in 3Q24, indicating a resurgence path.

05. Yole Forecasts Semiconductor Content in Cars to Hit $1,000 by 2029

Yole Group forecasts the automotive semiconductor market to expand to $100 billion by 2029, with the semiconductor content per vehicle expected to reach $1,000. The fastest growth is anticipated in advanced driver-assistance systems (ADAS) and safety applications, with a compound annual growth rate (CAGR) of 14% from 2023 to 2029. Electrification, as the second-largest market driver, is projected to grow at a CAGR of over 13% during the same period. Despite a slowdown in Europe, the Chinese market remains a significant growth engine in electrification. Dr. Yu Yang, principal analyst at Yole Group, notes that while the global automotive market is growing slowly, posing challenges for OEMs and suppliers, the semiconductor device market is still on track for a substantial 11% CAGR, nearly reaching $100 billion by 2029.

06. Powerchip Pivots to 3D AI Foundry, Targets Explosive Growth by 2026

Powerchip is transitioning its Tongluo facility to concentrate on 3D AI contract manufacturing, incorporating interposer and 3D wafer stacking technologies to cater to major clients. Despite market competition from increased wafer foundry capacities, Powerchip has secured customer certification and initiated shipments of high-value interposer products. The company is also collaborating with leading logic foundries, such as AMD, to develop WoW modules for four-layer DRAM wafers, aligning with downstream customers’ new product schedules.

Emphasizing the integration of mature process technologies for logic and memory, Powerchip is establishing a cost-efficient 3D AI foundry platform。 With the high added value of interposer and wafer stacking products and lower production equipment investment, Powerchip has deployed an initial capacity of several thousand units and is capable of rapidly expanding production lines to meet customer demands. Advancing its cooperation with India’s Tata Group, Powerchip’s FAB IP and 3D AI foundry business are progressing well, with expectations for explosive growth by 2026, setting a new benchmark for the successful transformation of the mature process industry.