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Below are news flashes for the week starting December 10, 2023.

1. SK hynix establishes AI chip business unit AI Infra

SK hynix, the world's second-largest memory chip maker, said on Thursday that it has established a new unit, AI Infra, to handle artificial intelligence as part of a strategic effort to focus more on high-demand high-end chips, Yonhap News Agency reported. (AI) Semiconductor related business.

According to reports, SK hynix’s newly established AI Infra department will integrate the high-bandwidth memory (HBM) capabilities dispersed within the company, and Kim Juseon, who is responsible for global sales and marketing, will be in charge of the AI Infra department. The GSM department, which was previously responsible for HBM customer communication, will also be integrated into the AI Infra department.

In addition, the company also stated that it will establish a new strategic department, the NS Committee, which is a group dedicated to strengthening the business of NAND flash memory and solutions, and is responsible for promoting the profitability of products and related projects and optimizing resource utilization efficiency.

2. In the third quarter of 2023, China’s foldable screen mobile phone sales increased by 175% year-on-year, and UTG accounted for 67%

According to CINNO's survey, in the third quarter of 2023, the sales of foldable screen mobile phones in the Chinese market reached 1.98 million units, a year-on-year increase of 175% and a month-on-month increase of 70%. It increased year-on-year and month-on-month, and it has been the twelfth consecutive quarter of positive year-on-year growth.

Against the background of sluggish overall demand in the smartphone market, foldable screen mobile phones have benefited from the innovative development of form and still maintain a growth trend against the trend. According to data from CINNO Research, in the third quarter of 2023, the sales of foldable screen mobile phones in the Chinese market reached 1.98 million units, a year-on-year increase of 175% and a month-on-month increase of 70%. It increased year-on-year and month-on-month, and it has been the twelfth consecutive quarter of positive year-on-year growth. . In the future, as folding screen product technology further matures, costs further decrease, and more applications are adapted, especially after the development of applications that can take advantage of the unique advantages of folding screen hardware, folding screen products are expected to occupy more market shares.

3. Shenzhen: Total storage capacity will reach 90EB by 2025

Recently, Shenzhen issued the "Shenzhen Action Plan for the High-Quality Development of Computing Infrastructure (2024-2025)" (hereinafter referred to as the "Action Plan").

The "Action Plan" points out that by 2025, the city will have basically formed a scientific and reasonable spatial layout, with a scale and volume that matches the needs of rapid pioneer urban construction, and that computing power, carrying capacity, storage capacity and application empowerment will be in line with the high-quality development of the digital economy. Adaptable, green, low-carbon and advanced computing power infrastructure layout with significantly improved levels of autonomy and controllability, build a diversified computing power supply system with coordinated development of general, intelligent, supercomputing and edge computing, and create "diversified supply, strong computing empowerment, Ubiquitous connection, secure integration" is the benchmark for China's computing and network cities.

Among them, in terms of overall layout, Shenzhen will build advanced computing infrastructure and continue to optimize network connection facilities. By 2025, the city's data center rack size will reach 500,000 standard racks, and the level of computing power and computing efficiency will be significantly improved.

4. Toshiba and Rohm will jointly produce power semiconductors

As part of the cooperation project, Toshiba will plan to invest in Rohm Semiconductor's new factory in Miyazaki Prefecture, Kyushu, Japan.

International Electronics Business News reported on December 8 that Toshiba and Rohm will jointly produce power semiconductors.

According to an application plan submitted to Japan's Ministry of Economy, Trade and Industry (METI), Toshiba and Rohm will invest 380 billion yen (approximately US$2.7 billion) to jointly produce power chips, of which Japan's Ministry of Economy, Trade and Industry will provide the largest three-point share. One of the subsidies is 120 billion yen ($830 million).

At the same time, as part of the cooperation project, Toshiba will plan to invest in ROHM Semiconductor's new factory in Miyazaki Prefecture, Kyushu, Japan.

As the demand for automotive electrification continues to advance, Toshiba Materials, a subsidiary of Toshiba Group, is actively investing in increasing the production of automotive-grade silicon nitride balls. On July 25, Toshiba Materials announced a major investment in new production facilities to increase the production capacity of silicon nitride balls. The facility will be built at the company's Oita factory in northern Kyushu, Japan. The 7 billion yen (approximately US$50 million) project is expected to be put into production in January 2026.

5. TSMC’s revenue both fell in November, and the short-term recovery of the global chip market may be difficult

On December 8, TSMC announced its monthly revenue for November, with sales of NT$206.0026 billion (approximately US$6.56 billion), a year-on-year decrease of 7.5% and a month-on-month decrease of 15.3%. Industry analysis shows that with the blessing of Apple's new mobile phone iPhone15, revenue in October increased, but revenue fell by 15.3% month-on-month in November, indicating that the recovery of the global chip market may not be that fast.

On December 8, TSMC announced its monthly revenue for November, with sales of NT$206.0026 billion (approximately US$6.56 billion), a year-on-year decrease of 7.5% and a month-on-month decrease of 15.3%. Industry analysis shows that with the blessing of Apple's new mobile phone iPhone15, revenue in October increased, but revenue fell by 15.3% month-on-month in November, indicating that the recovery of the global chip market may not be that fast.

During a third-quarter earnings call, TSMC CEO Wei Zhejia said the company expected the chip market to bottom out "soon" but stopped short of predicting a strong rebound.

Electronics makers and chip suppliers have been struggling to absorb large amounts of unsold inventory. But now, executives at chip companies including TSMC and Samsung Electronics say the industry has largely exhausted its excess supply.

Demand for artificial intelligence (AI) chips is boosting performance at companies such as Nvidia (NVDA) and Advanced Micro Devices (AMD) and filling orders for TSMC's most advanced production nodes. AMD on Wednesday expected the market for artificial intelligence chips to climb to more than $400 billion over the next four years, more than double AMD's forecast in August. TSMC also produces AMD's chips, including the latest artificial intelligence chip MI300.

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