Yesterday SK Hynix reported its Q1 2023 results and to say that they were abysmal is being kind, as the company reported a 3.4 trillion won operating loss, or just over US$2.5 billion. That's no small hit to take for any company, especially when it's only the performance for a single quarter. However, SK Hynix is apparently trying to see its situation from a positive perspective and believes that the memory chip market will rebound in the second half of this year. The positive outlook isn't just based on what SK Hynix believes though, as various analysts and securities companies believe in an upswing in the second half of the year.

That said, Micron, one of SK Hynix main competitors, has a more drab outlook for the remainder of 2023 and is expecting a tough year ahead. SK Hynix is expecting production cuts by itself, Micron and Samsung to start to take effect sometime in the second quarter this year, which should see inventory drop to more normal levels for all three companies. SK Hynix is also expecting to see a higher demand for DDR5 DRAM later this year, especially in the mobile and server market space. Finally, SK Hynix is hoping that its customers will buy higher density memory products this year, replacing older, lower density solutions, be that DRAM or NAND flash related. SK Hynix is expecting to launch its Gen 5 10 nm DRAM and 238-layer NAND sometime next year, which the company is also hoping will bring more income to its coffers, but the company still has to make it through the rest of 2023 first.

Samsung Electronics today reported financial results for the first quarter ended March 31, 2023. The Company posted KRW 63.75 trillion in consolidated revenue, a 10% decline from the previous quarter, as overall consumer spending slowed amid the uncertain global macroeconomic environment. Operating profit was KRW 0.64 trillion as the DS (Device Solutions) Division faced decreased demand, while profit in the DX (Device eXperience) Division increased.

The DS Division's profit declined from the previous quarter due to weak demand in the Memory Business, a decline in utilization rates in the Foundry Business and continued weak demand and inventory adjustments from customers. Samsung Display Corporation (SDC) saw earnings in the mobile panel business decline quarter-on-quarter amid a market contraction, while the large panel business slightly narrowed its losses. The DX Division's results improved on the back of strong sales of the premium Galaxy S23 series as well as an enhanced sales mix focusing on premium TVs.

TrendForce reports that mass production of new server platforms—such as Intel Sapphire Rapids and AMD Genoa—is imminent. However, recent market reports have indicated a PMIC compatibility issue for server DDR5 RDIMMs; DRAM suppliers and PMIC vendors are working to address the problem. TrendForce believes this will have two effects: First, DRAM suppliers will temporarily procure more PMICs from Monolithic Power Systems (MPS), which supplies PMICs without any issues. Second, supply will inevitably be affected in the short term as current DDR5 server DRAM production still uses older processes, which will lead to a convergence in the price decline of DDR5 server DRAM in 2Q23—from the previously estimated 15~20% to 13~18%.

As previously mentioned, PMIC issues and the production process relying on older processes are all having a short-term impact on the supply of DDR5 server DRAM. SK hynix has gradually ramped up production and sales of 1α-nm, which, unlike 1y-nm, has yet to be fully verified by consumers. Current production processes are still being dominated by Samsung and SK hynix's 1y-nm and Micron's 1z-nm; 1α and 1β-nm production is projected to increase in 2H23.

Thermaltake today introduced its ToughRAM D5 RGB series DDR5 memory in multiple color options that it had shown off in its 2023 CES booth. Today's release sees the memory modules in six color variants—Turquoise, Racing Green, Metallic Gold, Racing Red, White, and Black. These come with the distinctive Thermaltake "TT" design, and are capped with silicone diffusers for the 8 RGB LEDs that you can control using the TT RGB Plus 2.0 app.

Thermaltake sells these only in 32 GB (2 x 16 GB) kits, rated for DDR5-5600, 36-36-36-76 timings, and 1.1 V to 1.25 V DRAM voltage. These are based on SK Hynix M-die DRAM chips in single-rank 8x 16 Gbit configuration. What's interesting is that even to achieve its rather modest DDR5-5600 speed, Thermaltake included both Intel XMP 3.0 and AMD EXPO profiles. The company didn't reveal pricing.

A strong growth in AI server shipments has driven demand for high bandwidth memory (HBM). TrendForce reports that the top three HBM suppliers in 2022 were SK hynix, Samsung, and Micron, with 50%, 40%, and 10% market share, respectively. Furthermore, the specifications of high-end AI GPUs designed for deep learning have led to HBM product iteration. To prepare for the launch of NVIDIA H100 and AMD MI300 in 2H23, all three major suppliers are planning for the mass production of HBM3 products. At present, SK hynix is the only supplier that mass produces HBM3 products, and as a result, is projected to increase its market share to 53% as more customers adopt HBM3. Samsung and Micron are expected to start mass production sometime towards the end of this year or early 2024, with HBM market shares of 38% and 9%, respectively.

AI server shipment volume expected to increase by 15.4% in 2023
NVIDIA's DM/ML AI servers are equipped with an average of four or eight high-end graphics cards and two mainstream x86 server CPUs. These servers are primarily used by top US cloud services providers such as Google, AWS, Meta, and Microsoft. TrendForce analysis indicates that the shipment volume of servers with high-end GPGPUs is expected to increase by around 9% in 2022, with approximately 80% of these shipments concentrated in eight major cloud service providers in China and the US. Looking ahead to 2023, Microsoft, Meta, Baidu, and ByteDance will launch generative AI products and services, further boosting AI server shipments. It is estimated that the shipment volume of AI servers will increase by 15.4% this year, and a 12.2% CAGR for AI server shipments is projected from 2023 to 2027.

TrendForce reports that the US Department of Commerce recently released details regarding its CHIPS and Science Act, which stipulates that beneficiaries of the act will be restricted in their investment activities—for more advanced and mature processes—in China, North Korea, Iran, and Russia for the next ten years. The scope of restrictions in this updated legislation will be far more extensive than the previous export ban, further reducing the willingness of multinational semiconductor companies to invest in China for the next decade.

CHIPS Act will mainly impact TSMC; and as the decoupling of the supply chain continues, VIS and PSMC capture orders rerouted from Chinese foundries
In recent years, the US has banned semiconductor exports and passed the CHIPS Act, all to ensure supply chains decoupling from China. Initially, bans on exports were primarily focused on non-planar transistor architecture (16/14 nm and more advanced processes). However, Japan and the Netherlands have also announced that they intend to join the sanctions, which means key DUV immersion systems, used for producing both sub-16 nm and 40/28 nm mature processes, are likely to be included within the scope of the ban as well. These developments, in conjunction with the CHIPS Act, mean that the expansion of both Chinese foundries and multinational foundries in China will be suppressed to varying degrees—regardless of whether they are advanced or mature processes.

GELID Solutions has introduced its brand new IceROCK DDR Cooling Kit to the world. This aftermarket heatsink radiator is constructed from high-grade aluminium and available to order in two finishes - black or silver. These kits offers primary support for DDR5 memory modules, but Gelid has made sure to provide full compatibility for older DDR3 and DDR4 RAM sticks. The optimized heatsink is light in weight and easy to install, and offers professional level cooling - ideal for overclocking and boosting enthusiasts.

The minimalist and sleek design only weighs in at 60 g, and the pure and high-grade aluminium heatsink guarantees excellent heat conductivity. The kit can be installed onto a wide variety of memory module shapes - be it low or high profile, plus single or double sided RAM arrangements.

Samsung Electronics will be cutting back on memory chip production, following a worrying drop in its operational profits. Estimates for the first quarter point to a 96% year-on-year decline - the silicon mega-corporation's lowest profit result in 14 years (since the first quarter of 2009). Samsung's operating profits fell to 600 billion won ($456 million) in January to March 2023, from 14 trillion won the previous year. The company has confirmed that a slump in sales is the main cause behind the smaller margins - with a slow global economy and a drop in demand after the chip shortages of 2020 - 2022. Manufacturers of computer and server equipment have reduced expenditure on procurements of RAM and storage solutions.

In a statement released last week, the company confirmed that it was adjusting its manufacturing output in reaction to the drop in demand: "We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured." Industry analysts in South Korean are foreseeing that Samsung's chip business will post heavy losses (into the billions of dollars) during the first three months of 2023. Samsung is expected to publish detailed financial results later this month. The analysts have spotted similar patterns at other South Korea-based memory chip markers - SK Hynix and Micron have recorded heavy financial losses across recent quarters.

TrendForce reports that several suppliers, such as Micron and SK hynix, have started scaling back DRAM production. The ASP of DRAM plunged 20% in 1Q23, and this price decline is predicted to slow down to 10~15% next quarter. It's uncertain whether or not demand will recover in 2H23. Therefore, the ASP of DRAM has continued to fall as inventory levels are high from the suppliers' side, and prices will only rebound if there is a significant decrease in production.

PC DRAM: Purchase quantity from buyers has fallen drastically over the past three quarters; buyers have around 9~13 weeks of PC DRAM stock remaining. Despite suppliers having already cut production in the PC DRAM segment, DDR4 8 GB module is still likely to fall by more than 10% in 2Q23. There is a possibility that PC OEMs may purchase more DRAM because prices have been down to a relatively low level, but it is still under observation whether or not this can mitigate the inventory overstock situation from the suppliers' side. TrendForce predicts the ASP of PC DRAM will fall between 10~15%.

T-FORCE, the gaming sub-brand of Team Group, has launched the blazing-fast VULCAN SO-DIMM DDR5 Memory for laptop gamers looking to upgrade to next-generation DDR5 memory. The VULCAN Memory delivers incredible performance with a simple installation and comes in a range of large capacities, making it the perfect choice for boosting one's gaming experience as well as productivity. Thanks to its ultra-thin graphene heatspreader that enhances cooling; it keeps laptops stable during intensive gaming and allows players to seize victory at the most critical moments.

Following the release of DDR5 desktop memory, the new generation of extremely-fast RAM from T-FORCE has swept the PC hardware world. Today, T-FORCE is launching its first VULCAN SO-DIMM DDR5 Memory designed specifically for gaming laptops. Offering a max clock rate of DDR5-5200 and featuring an ultra-thin graphene heatspreader, gamers will experience shorter load times and faster boot-up speeds while still maintaining low laptop temperatures. With up to 64 GB of capacity, players will enjoy unimpeded gaming and use work applications simultaneously. The new release of VULCAN SO-DIMM brings a whole new level of performance and user experience.

When Intel announced the appearance of the 4th generation Xeon-W processors, the company announced that the clock multiplier was left unlocked, available for overclockers to try and push these chips even harder. However, it was only a matter of time before we saw the top-end Xeon-W SKU take a chance at beating the world record in Cinebench R23. The Intel Xeon W9-3495X SKU is officially the world record score holder with 132,484 points in Cinebench R23. The overclocker OGS from Greece managed to push all 56 cores and 112 threads of the CPU to 5.4 GHz clock frequency using liquid nitrogen (LN2) cooling setup. Using ASUS Pro WS W790E-SAGE SE motherboard and G-SKILL Zeta R5 RAM kit, the OC record was set on March 8th.

The previous record holder of this position was AMD with its Threadripper Pro 5995WX with 64 cores and 128 threads clocked at 5.4 GHz. Not only did Xeon W9-3495X set the Cinebench R23 record, but the SKU also placed the newest record for Cinebench R20, Y-Cruncher, 3DMark CPU test, and Geekbench 3 as well.

According to TrendForce's latest survey of the server market, many cloud service providers (CSPs) have begun large-scale investments in the kinds of equipment that support artificial intelligence (AI) technologies. This development is in response to the emergence of new applications such as self-driving cars, artificial intelligence of things (AIoT), and edge computing since 2018. TrendForce estimates that in 2022, AI servers that are equipped with general-purpose GPUs (GPGPUs) accounted for almost 1% of annual global server shipments. Moving into 2023, shipments of AI servers are projected to grow by 8% YoY thanks to ChatBot and similar applications generating demand across AI-related fields. Furthermore, shipments of AI servers are forecasted to increase at a CAGR of 10.8% from 2022 to 2026.

Although DRAM is using much less refined production processes compared to the latest processors and GPUs, all the major manufacturers are continuing to shrink their manufacturing nodes step by step. Part of the reason for this, is that a node shrink doesn't have the same improvements for DRAM as it does for most types of field-effect transistors or FETs, which are mostly used for making processor logic of some kind. SK Hynix is now said to have entered the partner verification process of its 5th gen 1β DRAM, to make sure its latest 1x nm DRAM is compatible with major applications. In SK Hynix's case this should roughly translate to a 12 nm process node.

According to Chosun Media in Korea, Intel will take part in this verification, with Intel having finished verification of SK Hynix's 4th gen 1α DRAM for its 4th gen Xeon Scalable processor. Initially, SK Hynix's 5th gen 1β DRAM will be targeting server applications, so it's likely it will be tested for compatibility with the same platforms from Intel, among others. The new 1β DRAM is said to increase efficiency by more than 40 percent, although the publication didn't mention if this is power efficiency or something else. The 1β DRAM from SK Hynix, as well as Samsung—who announced its 1β DRAM in December 2022—are made using an EUV lithography process and the two Korean DRAM makers are the only two makers of DRAM that are using EUV so far.

According to TrendForce's research, global DRAM revenue fell by 32.5% QoQ to US$12, 281 million for 4Q22. The QoQ decline for 4Q22 is larger than the QoQ decline of 28.8% for 3Q22 and comes close to the QoQ decline of 36% for the final quarter of 2008, when the global economy was in the midst of a major financial crisis. The main cause of the steep revenue drop in 4Q22 was the plummeting overall ASP. DRAM suppliers experienced a rapid accumulation of inventory in 3Q22 due to a freeze in buyers' demand. Subsequently, suppliers were much more energetic in price negotiations for 4Q22 contracts as they were struggling for market share. Among the major categories of DRAM products, server DRAM suffered the sharpest price drop in 4Q22. Contract prices of DDR4 and DDR5 server DRAM products registered QoQ drops of 23~28% and 30~35% respectively.

SK Hynix ran into issues earlier this month at one of its DRAM production fabs, due to impurities in zirconium high-k materials used in the production. The materials were supplied by SK Trichem and due to the impurities, the equipment at SK Hynix fab ended up leading to increased pressure in some of the manufacturing equipment and forced the production to be shut down. All the equipment at the fab had to be cleaned and some even replaced due to the impurities in the material.

The zirconium high-k material is deposited at the atomic level, atop the capacitors of the DRAM, as a precursor. Any impurities in such a material would lead to failed DRAM chips, but apparently there was no damage to the DRAM wafer production in this case, according to SK Hynix. The company will be ordering replacement material from two other suppliers for the time being and SK Trichem should be supplying a fresh batch by the end of the month.

Since 2022, DRAM suppliers have been adjusting their product mixes so as to assign more wafer input to server DRAM products while scaling back the wafer input for mobile DRAM products. This trend is driven by two reasons. First, the demand outlook is bright for the server DRAM segment. Second, the mobile DRAM segment was in significant oversupply during 2022. Moving into 2023, the projections on the growth of smartphone shipments and the increase in the average DRAM content of smartphones remain quite conservative. Therefore, DRAM suppliers intend to keep expanding the share of server DRAM in their product mixes. According to TrendForce's analysis on the distribution of the DRAM industry's total bit output for 2023, server DRAM is estimated to comprise around 37.6%, whereas mobile DRAM is estimated to comprise around 36.8%. Hence, server DRAM will formally surpass mobile DRAM in terms of the portion of the overall supply within this year.

The new HEATKILLER V PRO graphics card coolers for Nvidia's RTX 4090 Founders Edition have been specially developed to cope with the high power dissipation of 450 watts and more. In order to achieve the necessary performance increase, the German manufacturer decided to introduce a modular high-performance bottom plate as well as implementing existing proven technologies.

To increase the cooling performance in the GPU core area, Watercool relies on a modular high-performance base plate. Due to a fine-slit fin structure and the resulting increase in the cooling surface, this ensures a significantly higher cooling performance compared to a monolithic design. At the same time, the German manufacturer has optimized the fin structure in order to achieve a high flow rate as well. The distances to heat-relevant components were kept tight, which means that the heat of the thermal problem zones like GDDR6X Ram and voltage converters can be dissipated ideally.

Silicon Motion Technology Corporation ("Silicon Motion" or the "Company") today announced its financial results for the quarter ended December 31, 2022. For the fourth quarter of 2022, net sales (GAAP) decreased sequentially to $200.8 million from $250.8 million in the third quarter of 2022. Net income (GAAP) decreased to $23.5 million, or $0.71 per diluted American Depositary Share ("ADS") (GAAP), from net income (GAAP) of $42.9 million, or $1.29 per diluted ADS (GAAP), in the third quarter of 2022.

For the fourth quarter of 2022, net income (non-GAAP) decreased to $41.1 million, or $1.22 per diluted ADS (non-GAAP), from net income (non-GAAP) of $51.2 million, or $1.53 per diluted ADS (non-GAAP), in the third quarter of 2022.

Samsung Electronics today reported financial results for the fourth quarter and the fiscal year 2022. The Company posted KRW 70.46 trillion in consolidated revenue and KRW 4.31 trillion in operating profit in the quarter ended December 31, 2022. For the full year, it reported 302.23 trillion in annual revenue, a record high and KRW 43.38 trillion in operating profit.

The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown. Earnings at the Memory Business decreased sharply as prices fell and customers continued to adjust inventory. The System LSI Business also saw a decline in earnings as sales of key products were weighed down by inventory adjustments in the industry. The Foundry Business posted a new record for quarterly revenue while profit increased year-on-year on the back of advanced node capacity expansion as well as customer base and application area diversification.

Tachyum today announced that the IP components -DDR5 RAM controller and high-performance, low-power DSP-based PHY - incorporated into the Prodigy Universal Processor have allowed it to achieve speeds of 6400 MT/s at nominal voltage for Prodigy chip which provides headroom for expected speeds of up to, or even over, 7200 MT/s.

The critical components supplied by a global leader in high-speed DDR DRAM controllers and DDR DRAM PHYs for the world's technology infrastructure, have enabled Tachyum engineers to integrate its IP into Prodigy less than 7 months after entering into a technology partnership. The quality of this IP and the support provided by working closely with Tachyum engineers have allowed the company to close DDR5 timings in record time.

TrendForce's latest analysis of the DRAM market finds that the inventory pressure on suppliers remain significant due to the persistently weak demand for consumer electronics. Among the top three DRAM suppliers, only Samsung has seen a slight drop in inventory level thanks to its highly competitive pricing strategy. To prevent DRAM prices as a whole from making another sharp dive, a few suppliers such as Micron have been cutting production. Therefore, the QoQ decline in DRAM prices are projected to shrink to around 13~18% for 1Q23. However, the slump will have yet to reach the bottom at that time. Regarding the QoQ changes in the prices of the major categories of DRAM products for 1Q23, PC DRAM and server DRAM are projected to again register a drop that is near 20%. Conversely, mobile DRAM will experience the smallest price decline because its profit margin is ready the thinnest.

Consumer electronics giant Samsung had what can only be described as a terrible fourth quarter in 2022, with profits falling by around 4.3 trillion Korean Won, or US$3.4 billion, a drop of 69 percent compared to the previous year. This will be Samsung's lowest profit since Q3 2014 and Samsung has grown a lot as a company in those eight years. The revenue was also down nine percent from the third quarter of 2022, suggesting that Samsung is in for a rough start to the new year.

There seems to be a combination of reasons for the drop in profit, from lower demand for Samsung's range of smartphones and other consumer electronics, but also due to lower demand for memory chips, both DRAM and NAND, both of which Samsung is a big producer of. Samsung stated that "for the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances," which places Samsung in the same situation as its major competitors, who have also reported huge demand slumps.

Thermaltake's CES booth was lit up with a vibrant mix of illuminated enthusiast PC memory modules, from its ToughRAM D5 RGB series. The company is going beyond boring black and white heatspreader color options, and now has die-cast aluminium heatspreader in a number of colors, including gold, red, and turquoise. Even the usual black and white ones come with new printed patterns, under the ToughRAM D5 RGB XG series. The ToughRAM D5 RGB XG comes in speeds of up to DDR5-6600, and per-module capacity of up to 32 GB along with 16-diode RGB LED setup; whereas the regular ToughRAM D5 RGB ticks at speeds of up to DDR5-5600, up to 32 GB density, and a 6-diode LED setup diffused through a silicone band.

According to Reuters, Samsung is gearing up to increase the chip production capacity at its P3 factory in Pyeongtaek in South Korea, despite the fact that there's a general slowdown in the semiconductor industry, in addition to the general economic downturn. Samsung is apparently planning on adding 12-inch wafer capacity for DRAM, while also adding more 4 nm chip capacity. The P3 fab kicked off production of Samsung's most cutting-edge NAND flash chips earlier this year and is the company's largest fab overall. According to Reuters, Samsung is aiming to add at least 10 new EUV machines in 2023.

In related news via The Elec, Samsung has seen costs increase significantly when it comes to materials costs relating to the expansion of the P3 fab. So far, the company has racked up extra costs of over a trillion korean Won, or more than US$786 million, largely due to all of its contractors having raised their prices. The report also mentioned that some parts of the expansion of the P3 fab has been delayed by as much as a year, which isn't good news for Samsung and it likely means that the company will see further increases in costs before the expansions are finished.

SK hynix Inc. announced today that it has developed working samples of DDR5 Multiplexer Combined Ranks (MCR) Dual In-line Memory Module, the world's fastest server DRAM product. The new product has been confirmed to operate at the data rate of minimum 8 Gbps, and at least 80% faster than 4.8 Gbps of the existing DDR5 products. MCR DIMM is an achievement coming from out-of-the-box thinking with an aim to improve the operation speed of DDR5. Challenging the prevailing concept that the operation speed of DDR5 relies on that of DRAM chip itself, engineers sought to find a way to improve the speed of modules instead of chips for development of the latest product.

SK hynix designed the product in a way that enables simultaneous operation of two ranks by utilizing the data buffer installed onto the MCR DIMM based on Intel's MCR technology. By enabling simultaneous operation of two ranks, MCR DIMM allows transmission of 128 bytes of data to CPU at once, compared with 64 bytes fetched generally in conventional DRAM module. An increase in the amount of data sent to the CPU each time supports the data transfer rate of minimum 8 Gbps, twice as fast as a single DRAM.