Latest Semiconductor News Update on Jan 21 to 27, 2024

Apple opens up NFC to third-party apps in EU

Apple announced today that iOS 17.4 will add support for developers to access the NFC chip on iPhone to comply with the requirements of the European Union’s Digital Markets Act, paving the way for an Apple Pay alternative in Europe.

In addition to allowing low-cost sideloading of apps in the EU, Apple will also provide developers with the ability to use Apple Pay for iPhone near-field communications for other banking and wallet apps. What’s more, its new APIs that enable developers to leverage NFC technology in banking and wallet applications across the European Economic Area.

WiFi chips market size is expected to reach US$34.5 billion

According to a report by Fundamental Business Insights, the Wi-Fi chips market size is expected to exceed US$21 billion in 2023 and reach US$34.5 billion by 2033, with a compound annual growth rate of more than 4.4% during the forecast period.

The increasing use of smartphones, laptops, Internet of Things (IoT) devices, smart appliances, and other connected devices is driving demand for Wi-Fi chips. For example, the popularity of the Internet of Things (IoT) has led to increased demand for Wi-Fi chipsets in various applications, including wearable technology, smart home appliances, industrial automation, medical equipment, and more. In addition, as internet connectivity spreads across developing countries, rising demand for low-cost Wi-Fi devices is driving the growth of the Wi-Fi market.

Memory chips are expected to surge by 60%

According to TrendForce, DRAM and NAND flash memory component prices are expected to increase by approximately 60% by the end of 2024. The compounding effect of the sequential percentage price increases means the average cost of DRAM could be 36% to 63% higher than in early 2024, the analyst said. As far as NAND flash memory components are concerned, their costs may be 31% to 57% higher than at the beginning of the year. Prices rebounded after eight straight quarters of declines. And analysts said the sustainability of this rise will depend on suppliers' effective control of manufacturing capacity utilization.

The memory market grew strongly in Q12024, with DRAM contract prices rising by 13% to 18% quarter-on-quarter, and NAND flash memory contract prices rising by 18% to 23% quarter-on-quarter. In the DRAM market, the increase in penetration rates of DDR5 and HBM will further push up the overall average selling price, thereby expanding the month-on-month increase in contract prices.

Infineon and Wolfspeed expand and extend multi-year SiC 150mm wafer supply agreement

announced the expansion and extension of their existing long-term 150mm silicon carbide wafer supply agreement, originally signed in February 2018. The extended cooperation will include a multi-year capacity reservation agreement, which will help ensure the stability of Infineon's entire supply chain while meeting the growing demand for silicon carbide semiconductors in automotive, solar, electric vehicle charging applications, energy storage systems and other fields.

Infineon said this move will further enhance its supply chain resilience in the coming years. And it is a joint effort to advance the adoption of silicon carbide in numerous markets including automotive, industrial and energy, and to help customers promote decarbonization through this energy-efficient technology.

Musk plans to buy AMD chips as Tesla loads up on AI hardware

Tesla CEO Elon Musk said he plans to buy chips from AMD as part of spending on computing hardware to tackle artificial intelligence (AI). In December 2023, AMD launched its highly anticipated MI300 series products in San Jose, California, USA. This may be one of the most important announcements in AMD's five-year history, and the company will go head-to-head with Nvidia in the hot AI accelerator market.

Samsung's Taylor TX fab delays tool-in plans again

Samsung Electronics is reportedly delaying its tool-in plans for its fab in Taylor, Texas. Semiconductor equipment sources said Samsung originally planned to install equipment at the Taylor wafer fab in late 2023, but the delay may be due to rising product prices and wage costs.

The Taylor factory was originally scheduled to enter mass production in the second half of 2024. However, Samsung Electronics said in December 2023 that the Taylor factory will start its first foundry service in the second half of 2024 and start mass production in 2025, indicating that the investment plan has been adjusted. If equipment installation continues to be delayed, outsiders are worried whether mass production will be delayed again.

Japan’s 2nm progress is going smoothly

Rapidus, a chip manufacturing company supported by the Japanese government, recently stated that the construction of its 2nm chip factory in Chitose City, Hokkaido is going smoothly and will be trial-produced in April 2025 as planned. Rapidus built Japan's first sub-2nm and most advanced logic chip factory "IIM-1" in Chitose City, Hokkaido in September 2023, and Chitose Office has opened in Chitose City on January 22, 2024. The office will serve as Rapidus's contact window in Hokkaido, used to hold talks with local companies and engage in recruitment and other matters. It is reported that the Japanese government is injecting hundreds of billions of yen into Rapidus. At the same time, the company is conducting in-depth exchanges and cooperation with IBM, ASML, etc. to learn 2nm chip manufacturing technology.