SK hynix is set to release SK hynix Beetle X31, a portable solid-state drive (SSD) for consumers, in global markets starting with the U.S. later in June. As the company's first portable SSD, the X31 has been praised for its superior performance, convenient portability, and stylish design following its launch in South Korea in May 2023. In particular, the SSD can reach operating speeds of up to 10 gigabits per second (Gbps) while it also possesses exceptional heat management capabilities. Released amid a growth in the portable SSD market, the X31 meets the rising demand for storage devices to not only rapidly read and write but also store data safely on-the-go.

The X31 combines SK hynix's technologies which enabled optimal power consumption in the Gold P31 and the highest specifications for a consumer SSD in the Platinum P41. Moreover, while DRAM-less SSDs have become widespread as part of industry efforts to cut costs, SK hynix opted to maximize the performance of the X31 by applying DRAM as a buffer inside of the SSD. Accordingly, the X31 can deliver a maximum sequential read speed of 1,050 megabytes per second (MB/s) and a maximum sequential write speed of 1,000 MB/s. At these speeds, it is possible to transfer a 1 GB file in just one second. More specifically, the X31 is able to transfer 500 GB of data while maintaining an optimal speed of over 900 MB/s. This is because the X31 strikes a balance between managing heat generated from fast data movement and maximizing write speeds.

According to the latest report from Reuters, a former Samsung executive was arrested by the South Korean authorities yesterday, being accused of stealing company secrets to build a similar chip production facility in China. The former executive had worked for SK Hynix before joining Samsung, where he was involved in the Samsung Electronics division responsible for semiconductor factories. According to the report, the person planned to build a competing factory 1.5 km from a Samsung chip manufacturing facility in Xian, China. The suspect, who was not identified publically, has a collective of 28 years of experience with the South Korean chip makers.

Interestingly, the suspect also caused financial harm to the company, which the Suwon District Prosecutors' Office estimates to be around 300 billion won ($233 million). Prosecutors have announced the indictment of six additional individuals suspected of involvement in the case, including an employee of an inspection company who is charged with allegedly disclosing the architectural blueprint of Samsung's semiconductor plant. A police official commented, "We will sternly deal with any leakage of our technology abroad and strongly respond to illegal leak of domestic companies' core technologies in semiconductor, automobile and shipbuilding sectors among other."

Last October, the US Department of Commerce imposed semiconductor restrictions on Chinese imports of equipment for processes of 18 nm and below. SK hynix's Wuxi fab was granted a one-year production license, but geopolitical risks and weak demand prompted the company to reduce wafer starts by about 30% per month in 2Q23, according to TrendForce's latest research.

TrendForce reports that SK hynix had planned to transition its Wuxi fab's mainstream process from 1Y nm to 1Z nm, decreasing the output of legacy processes. However, due to limitations imposed by the US ban, the company instead opted to increase the share of its 21 nm production lines, focus-ing on DDR3 and DDR4 4Gb products. SK hynix's long-term strategy involves shifting its capacity expansion back to South Korea, while the Wuxi fab caters to domestic demand in China and the legacy-process consumer DRAM market.

Hi gamers! I'm Samuel, the PD of Chrono Studio. To all who have been eagerly awaiting Chrono Odyssey, we are thrilled to finally unveil our second trailer giving you an in-depth look at the gameplay itself. At Chrono Studio, we are more than just developers - we are avid gamers who share a passion for epic titles and we believe that MMORPGs are more than just games - they are gateways to unforgettable experiences formed through shared adventures and challenges. Our vision for Chrono Odyssey is to continue the legacy of beloved MMORPGs that have stood the test of time.

At first glance Chrono Odyssey may seem like your typical MMORPG, but what sets Chrono Odyssey apart from the rest is its unparalleled graphics, made by the UE5 engine and our accumulated expertise. We have also elevated combat to new heights by incorporating the Chrono (time) element, which serves as the core of the game's universe, as well as the real-time MMO content enjoyed by hundreds of players to provide a dynamic social experience unlike any other.

LG is reported to be making substantial investments into improving and upgrading its OLED manufacturing facilities in South Korea - last month we found out about a similar effort underway at Samsung (courtesy of Reuters). Nikkei Asia has today published an article that explores this situation plus a wider context - their findings reaffirm existing claims that Samsung Display has spent $3+ billion on the sprucing up of its Tangjeong factory. LG's modernization bill is smaller at a mere $2.5 billion - this will be spent on creating additional production lines at the company's mainline Paju plant. LG is aiming to increase factory output of medium-sized OLED panels using sixth generation technology.

According to last month's report, industry insiders have suggested that Samsung was ramping up its high end OLED production lines in order to secure substantial component orders from a key client, Apple, with premium display panels destined for fitting on next generation iPad and MacBook products. Reuters posited that LG was not able to fulfil any new requests from Apple at the time - due to its display factories being fully booked and operating at maximum capacity. It seems that LG is now addressing this problem by making necessary and essential upgrades at its Paju P10 OLED facility. A domestic rivalry is only part of the problem, both giant South Korean electronics firms are also keeping a collective eye on other rival manufacturers (operating out of nearby nations).

Netlist Inc. an enterprise solid state storage drive specialist has been awarded over $303 million in damages by a federal jury in Texas on April 21, over apparent patent infringement on Samsung's part. Netlist has alleged that the South Korean multinational electronics corporation had knowingly infringed on five patents, all relating to improvements in data processing within the design makeup of memory modules intended for high performance computing (HPC) purposes. The Irvine, CA-based computer-memory specialist has sued Samsung in the past - with a legal suit filed at the Federal District Court for the Central District of California.

Netlist was seemingly pleased by the verdict reached at the time (2021) when the court: "granted summary judgements in favor of Netlist and against Samsung for material breach of various obligations under the Joint Development and License Agreement (JDLA), which the parties executed in November 2015. A summary judgment is a final determination rendered by the judge and has the same force and effect as a final ruling after a jury trial in litigation."

Google's business of providing the world's largest search engine is reportedly in jeopardy, as the latest reports indicate that Samsung could replace Google Search with another search engine as a default solution on its mobile devices. Samsung, which sells millions of devices per year, is looking to replace the current search engine, Google Search, in favor of more modern AI-powered models. Currently, Google and Samsung have a contract where Google pays the South Korean giant a sum of three billion US dollars per year to keep its search engine as a default option on Samsung's devices. However, this decision is flexible, as the contract is up for renewal and new terms are being negotiated.

With the release of the ChatGPT and AI-powered search that Microsoft Bing enables, Google is reportedly working hard to keep up and integrate Large Language Models (LLMs) into Search. Google's answer to Microsoft Bing is codenamed Project Magi, an initiative to bring AI-powered search supposedly next month. To emphasize the importance of getting this to production, Google was ready to give up three billion US Dollars of revenue to Samsung for keeping Google Search as a default search engine for 12 years without a doubt. However, with the emergence of better solutions like Microsoft Bing, Samsung is considering replacing it with something else. The deal is still open, terms are still negotiated, and for now there are no official mentions of Bing. As a reminder, Google has a similar agreement with Apple, worth 20 billion US Dollars, and Google Search was valued at 162 billion US Dollars last year.

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.

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.

Samsung Electronics has announced that its sub-division, Samsung Display, is planning to invest $3.1 billion until 2026 in Asan, South Korea to manufacture advanced organic light-emitting diode (OLED) display panels. The country's ministry stated that Samsung's next generation of OLED display panels will be integrated into tablets and laptops. There are already rumors swirling that Apple has contracted with Samsung Display to produce parts for a refresh of the MacBook Pro range that is set to debut at some point before 2026.

Industry insiders are claiming that the substantial investment into the company's Asan, South Chungcheong factory will help fulfil orders placed by Apple for iPad and MacBook OLED displays - the North American company has not officially confirmed an adoption of that type of screen technology for these product ranges. Samsung is likely trying to secure a long term relationship with the Silicon Valley behemoth, and at the same time outmaneuver its competitors in South Korea as well as those in neighboring nations. It has been reported that domestic rival LG is currently unable to take on new orders, as its display factories are functioning at maximum production capacities.

Silicon manufacturers in South Korea and Taiwan have questioned the requirements outlined in the United States Chips and Science Act - South Korean President Yoon Suk Yeol spoke on Thursday March 30, and said that there was a growing concern within companies Samsung Electronics Corporation and SK Hynix Inc. with regard to criteria for new U.S. semiconductor subsidies. Excess profit sharing is one area of contention, as the U.S. government will expect dividends to be paid under special conditions. The companies are also reluctant to meet the requirements of submitting detailed information about fab capacity and yield estimates. Leaders are pointing to the potential sensitive nature of exposing too much confidential corporate strategy to bodies in the USA, and sources within Samsung and SK Hynix are worried that budgetary planning information will be revealed in minute detail.

The CHIPS Act grants a $52 billion pool of research and manufacturing funds, and subsidies would be sourced from it. SK Hynix's parent group is considering an application in order to gain access to funding via the CHIPS Act, the SK Group has formed plans to invest $15 billion of its own money into the U.S. chip manufacturing sector - a North American location for an advanced chip packaging plant is being decided upon. Samsung has invested a substantial $25 billion into its Texas operation, so is eligible to receive U.S. government subsidies as well.

SK Hynix representatives unveiled the company's latest breakthrough in 3D NAND development at the ISSCC 2023 conference. Details of a new flash memory prototype featuring over 300 layers were revealed, and the company stated that a team of 35 engineers had contributed to the presentation material. In order to highlight the boost in performance offered by the prototype's improvements, it was compared to SK Hynix's previous record holding seventh-generation 238-layer 3D NAND. The new eighth-generation 3D NAND posted bandwidth figures with a maximum of 194 MB/s, which contrasts favorably with the older model's rate of 164 MB/s, representing an 18% increase in performance.

Recording density also benefits from the 300+ active layer design, with SK Hynix mentioning a 1 Tb (128 GB) capacity with triple level cells and a bit density of over 20 GB/mm^2. The chip features a 16 KB page size, four planes and a 2400 MT/s interface. The increase in density will result in a lower per-Tb cost during the manufacturing process. It is hoped that the end consumer will ultimately benefit from the boost in performance and capacity.

Samsung Electronics has announced ambitious long term plans to expand its operation in South Korea. The company is set to invest around $230 billion in new fabrication facilities, with five locations marked for development in Yongin, a city located within the Seoul Capital Area. The five new factories with mixed foundry and memory manufacturing purposes, will form part of the South Korean government's intentions to assemble a mega semiconductor hub in the region.

South Korea's Ministry of Trade, Industry and Energy (MOTIE) on Wednesday revealed its intent to invest $422 billion by 2026 to boost production of six core technologies: semiconductors, electric vehicle batteries, autonomous vehicles, robots and displays. The government provided a breakdown of the total budget, and $260 billion has been allocated for the country's chip space to develop system semiconductors into the year 2026.

One of the biggest drawbacks of modern CPUs is that adding more cores doesn't equal more performance in a linear fashion. Parallelism in CPUs offer limited scaling for most applications and even none for some. A South Korean company called Morumi is now taking a stab at solving this problem and wants to develop a CPU that can offer more or less infinite processing scaling, as more cores are added. The company has been around since 2018 and focused on various telecommunications chips, but has now started the development on what it calls every one period parallel processor (EOPPP) technology.

EOPPP is said to distribute data to each of the cores in a CPU before the data is being processed, which is said to be done over a type of mesh network inside the CPU. This is said to allow for an almost unlimited amount of instructions to be handled at once, if the CPU has enough cores. Morumi already has an early 32-core prototype running on an FPGA and in certain tasks the company has seen a tenfold performance increase. It should be noted that this requires software specifically compiled for EOPPP and Moumi is set to release version 1.0 of its compiler later this year. It's still early days, but it'll be interesting to see how this technology develops, but if it's successfully developed, there's also a high chance of Morumi being acquired by someone much bigger that wants to integrate the technology into their own products.

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.

It's not just TSMC and the other Taiwanese chip makers that are seeing a dip in demand, the Korean chip makers have seen a slump of 15 percent in the past four months, compared to 2021. This is said to be the biggest drop in chip demand since 2009 according to data from Statistics Korea. There's a combination of factors behind the slump in demand, especially when it comes to memory related products, where inventories already are high, combined with inflation and a low demand.

According to the Financial Times, an analyst at JPMorgan in Korea isn't expecting things to improve until 2024 at the earliest. Just like Micron and Kioxia, SK hynix is looking at cutting spending on new fabs and production lines, although as TPU reported earlier this week, Samsung is going its own way, by continuing to invest in new fabs and production lines. Samsung is expected to have a capex of US$37.5 billion this year back in October, although based on the increase in costs, the capex would have increased in the fourth quarter of the year. On the plus side, it seems like the shortage of semiconductors should ease in 2023 and hopefully return to more normal levels.

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.

Semiconductor manufacturers worldwide are forecast to expand 300 mm fab capacity at a nearly 10% compound average growth rate (CAGR) from 2022 to 2025, reaching an all-time high of 9.2 million wafers per month (wpm), SEMI announced today in its 300 mm Fab Outlook to 2025 report. Strong demand for automotive semiconductors and new government funding and incentive programs in multiple regions are driving much of the growth.

"While shortages of some chips have eased and supply of others has remained tight, the semiconductor industry is laying the groundwork to meet longer-term demand for a broad range of emerging applications as it expands 300 mm fab capacity," said Ajit Manocha, SEMI President and CEO. "SEMI is currently tracking 67 new 300 mm fabs or major additions of new lines expected to start construction from 2022 to 2025."

The economic downturn keeps pushing the PC and related manufacturing markets down, following slumps in demand stemming from increased cost of living, the veritable arms race to technological products during COVID-19, and manufacturer's efforts to increase output to provide enough product to meet said demand. But all that goes up must eventually come down, and now South Korean manufacturers are facing the result of months of decreased consumption, with stock levels increasing ahead of actual product uptake (stocks have reached 67.3% of produced goods and factory shipments have declined 20.4%). This has now led to a 1.7% decline in August's output when compared to the same period last year - the first time the South Korean industry has seen negative growth since 2018.

Samsung and Kioxia both have announced a reduction in production output in the months to come, which should give distribution enough time to clear some of the accumulated inventory. The scales of production typically occur in cycles - ones with excess manufacturing against demand, and other times where the reverse happens. It seems we're now in the descending part of the spectrum, with prices - especially of NAND - being expected to drop in the coming months. It will take a while until the manufacturing reduction makes itself felt in the overall IC pricing landscape. Micron too has announced it's slowing down the production ramp-up of its 232-layer 3D NAND so as not to contribute in excess towards an already over-saturated market.

The latest episode in the whole Terra/LUNA debacle - which saw $40 billion in crypto evaporating in a few hours - showcases that the crypto world doesn't operate within its own locked ecosystem. A court order for the arrest of Terra founder Do Kwon and five others was issued this Wednesday morning, on charges of violating the Capital Markets Act. LUNA fell 36% in the past 24 hours while LUNC (Luna Classic, representing the circulating LUNA tokens before the UST stablecoin's catastrophic depeg from the dollar value) dropped 25%, with much of the price movement coming after news of the warrant was made public on Wednesday morning.

The Terra/LUNA debacle brought about billions in losses across the cryptocurrency ecosystem, with multiple companies in the crypto finance area (from DeFi [Decentralized Finance] through CeFi [Centralized Finance] players such as Celsius Network, Voyager Digital and Three Arrows Capital claiming bankruptcy as their Terra/LUNA investments and reserves trended towards zero value. Accusations have been spread left and right that Terra/LUNA operated like a Ponzi Scheme - it remains to be seen whether that's the interpretation of the South Korea justice system.

With the course of the COVID-19 pandemic constantly changing, China is sticking with its "Dynamic Zero-COVID Policy" and has been slow to lift the lockdown on its cities that have been recently affected by the outbreaks of the disease. Hence, the manufacturing industries of the major Chinese cities are facing delays in the resumption of normal operation, and a production gap has emerged in 2Q22. For the electronics ODMs, this production gap will be difficult to bridge in 2H22. Additionally, the ongoing global inflation is keeping prices of goods at a very high level, and this trend will dampen the peak-season demand surge during the second half of the year. The effect of the inflationary pressure has been especially noticeable in the demand for consumer electronics such as smartphones, notebook computers, and tablet computers. This, in turn, is also impacting the MLCC market in terms of demand and inventory. Currently, the general inventory level has risen above 90 days for MLCCs of all sizes. Therefore, TrendForce forecasts that prices of consumer-spec MLCCs will fall further by 3-6% on average in 2H22.

On the other hand, demand remains fairly strong in application segments such as high-performance computing solutions (which include servers), networking equipment, industrial automation solutions, and energy storage systems. Furthermore, IDMs in the semiconductor industry will be adjusting the allocation of production capacity as the market for consumer electronics continues to experience a slowdown in 2H22. As a result, the undersupply situation for certain ICs will ease. Moreover, demand will be propped up in the high-end segment of the MLCC market and other application segments (e.g., automotive electronics and industrial equipment). All in all, thanks to the demand related to automotive electronics, servers, networking equipment, etc., TrendForce forecasts that the annual total MLCC shipments will increase by 2% YoY to around 2.58 trillion pieces for 2022.

Intel's revamped IDM 2.0 strategy has seen the company revise its stance in both in-house and outsourced silicon fabrication. While we're already seeing the fruits of Intel's collaboration with TSMC (albeit at the relatively slow pace of introduction for Intel's Arc Alchemist graphics), it seems that Intel is willing to go much farther than just TSMC as a source of chips for its product portfolio.

That's the backdrop to which Intel CEO Pat Gelsinger recently took a trip to South Korea's capital of Seoul. According to the Korea Herald, Gelsinger met several key Samsung executives, including Samsung Electronics Vice Chairman Lee Jae-yong, co-CEO and chip business boss Kyung Kye-hyun, and head of Samsung Mobile Roh Tae-moon. More than enough executive grunt to ignite talks of a deepening collaboration between both companies. While the reporting source doesn't provide any quotes or actionable intel from the meeting, Samsung remains one of the key semiconductor manufacturers alongside Intel itself and TSMC, with a particularly strong portfolio in memory-related technologies.

According to TrendForce research, looking at NAND Flash wafers, the pricing of which more sensitively reflects the market, suppliers are increasingly motivated to cut prices in exchange for sales due to weak retail demand since March and a more conservative outlook for shipments of other end products. The price of NAND Flash wafers is expected to begin falling in May and the supply of NAND Flash will gradually overtake demand in 2H22. The price decline of NAND Flash wafers in 3Q22 may reach 5~10%.

At the same time, TrendForce indicates that February's contamination incident at Kioxia was expected to tighten the market in 2Q22 and 3Q22. However, as a consequence of rising inflation and the war between Russia and Ukraine, market demand for consumer products in the traditional peak season of the second half of the year is trending conservative and the prices of client SSD, eMMC, and UFS in 3Q22 will be flat compared to 2Q22, breaking from the original expectation that prices may rise. In terms of enterprise SSDs, as demand for data centers remains strong, no significant correction in demand has yet been observed. However, as the overall NAND Flash market gradually moves into oversupply, prices will only grow slightly by approximately 0~5% in 3Q22.

According to TrendForce, Taiwan is crucial to the global semiconductor supply chain, accounting for a 26% market share of semiconductor revenue in 2021, ranking second in the world. Its IC design and packaging & testing industries also account for a 27% and 20% global market share, ranking second and first in the world, respectively. Firmly in the pole position, Taiwan accounts for 64% of the foundry market. In addition to TSMC possessing the most advanced process technology at this stage, foundries including UMC, Vanguard, and PSMC also have their own process advantages. Under the looming shadow of chip shortages caused by the pandemic and geopolitical turmoil in the past two years, various governments have quickly awakened to the fact that localization of chip manufacturing is necessary to avoid being cut off from chip acquisition due to logistics difficulties or cross-border shipment bans. Taiwanese companies have ridden this wave to become partners that governments around the world are eager to invite to set up factories in various locales.

Intel and AMD will be releasing new CPUs that support DDR5 DRAM solutions for PCs and servers this year. In response, the DRAM industry led by South Korean suppliers is developing solutions to complement the arrival of the new CPUs. In the midst of the gradual shift to DDR5, DRAM suppliers will also scale back the supply of DDR3 solutions, according to TrendForce's latest investigations. With Korean suppliers accelerating their withdrawal from DDR3 production, Taiwanese suppliers yet to kick off mass production using newly installed capacities, and Chinese suppliers falling short of their expected yield rate, the global supply of DDR3 solutions will undergo an impending decline. With respect to the demand side, however, not only has the supply of networking chips been ramping up, but material shortage issues are also gradually easing. As such, buyers are now procuring DDR3 solutions ahead of time, resulting in a tight supply and demand situation in the DDR3 market. TrendForce therefore expects DDR3 DRAM prices to recover from a bearish first quarter and undergo a 0-5% QoQ increase in 2Q22.