SK Hynix has reportedly decided to sell the subsidiary equipment of its Chinese manufacturing plant to an investment company owned by the Wuxi Municipal Government, leading to speculation that SK Hynix may be withdrawing from its Chinese manufacturing business.

According to reports from The Korea Economy Daily and Reuters, industry sources have revealed that SK Hynix’s subsidiary, SK Hynix System IC, which operates 8-inch wafer manufacturing, recently held a board meeting and decided to sell a 21.3% stake in SK Hynix System IC (Wuxi) for KRW 205.4 billion (roughly USD 150.8 million) to Wuxi Industry Development Group.

Additionally, as per the Reuter’s report, SK Hynix System IC said it will also sell its intangible assets, including process technology to its Wuxi unit for KRW 123.8 billion.

The sources cited by The Korea Economy Daily‘s report have revealed that Wuxi Industry Development Group has additionally issued new shares to acquire a 28.6% stake, indicating that SK hynix is highly likely to sell nearly 50% of its shares.

Just in March, per a report from Chosun Daily, SK Hynix planned the closure of its Shanghai-based company established in 2006, shifting its focus to Wuxi, where its semiconductor manufacturing plant is located, making it the new business hub in China. However, this recent withdrawal suggests that SK hynix may be considering a complete exit from the Chinese semiconductor foundry market.

SK Hynix’s decision to downsize its Chinese foundry business comes amid a worsening semiconductor market, compounded by aggressive capacity expansions by domestic companies, making it difficult to maintain competitiveness. Additionally, China is actively expanding its 8-inch wafer plants to counter US export restrictions and is heavily investing in nurturing leading domestic foundry enterprises such as SMIC and Hua Hong Semiconductor.

As per data from the National Bureau of Statistics of China, semiconductor capacity in China surged by 40% in the first quarter, with SMIC’s overall capacity increasing by over 12%, despite a slowdown in foundry demand.

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(Photo credit: SK Hynix)

Microsoft President Brad Smith announced the investment of USD 3.3 billion to construct an artificial intelligence data center in Wisconsin, aiming to make the state a core driver of the innovation economy. Notably, the site of the facility was originally intended for a LCD panel plant promised by Foxconn six years ago.

According to Microsoft’s press release, the AI data center in Wisconsin is expected to create 2,300 union construction opportunities by 2025 and will provide long-term employment opportunities over the next several years.

Microsoft’s press release highlights that this investment will be utilized for constructing cloud computing and artificial intelligence infrastructure, establishing the first AI co-innovation lab in the United States focused on the manufacturing industry, and promoting AI training programs with the goal of enabling over 100,000 Wisconsin residents to acquire necessary AI skills.

The press release also notes that Microsoft will collaborate with Gateway Technical College to establish a Data Center Academy, aiming to train more than 1,000 students within five years, equipping them to enter roles in data centers or information technology departments.

Microsoft’s new facility in Racine County, Wisconsin, was originally intended to be the site of a LCD panel plant planned by Foxconn, a subsidiary of Hon Hai Precision Industry Co., Ltd. (Foxconn Group), according to a report by CNA.

In June 2018, then-chairman of Foxconn, Terry Gou, and then-US President Donald Trump attended the groundbreaking ceremony for the panel plant. Foxocnn announced an investment of USD 10 billion, and Trump described the project as the “8th wonder of the world.”

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• [News] Microsoft Reportedly Stockpiling AI Chips to Boost Hardware Capability
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(Photo credit: iStock)

The latest challenger has emerged in the battle for dominance in China’s GPU and graphics card market. China’s LinJoWing has unveiled its self-developed second-generation graphics processing chip, the GP201, reportedly boasting performance metrics surpassing that of AMD’s E8860 embedded graphics card.

According to a report from global media outlet Tom’s Hardware, LinJoWing, despite being only three years old, has demonstrated with its GP201 GPU performance comparable to AMD’s E8860 integrated graphics card from a decade ago. While the GPU is already in production and available in China, it has yet to surface on American shopping websites.

As per a report from Chinese media outlet IT Home, the GP201 outperforms the AMD E8860 embedded graphics card in various aspects such as 3D performance, 2D polygon rendering, ellipse rendering, pixel and image shifting, window rendering, and support for the domestic OpenCL library platform.

Additionally, LinJoWing’s GP201 GPU supports multiple Chinese-made processors and operating systems, with single-precision floating-point computing power reaching 1.2 Tflops. It supports 4K 60Hz display and H.265 decoding, with a maximum power consumption of 30W. Currently, five models of the GPU have been released in full-height, half-height, MXM, and other forms.

Tom’s Hardware believes that the performance of the GP201 is actually unimpressive. NVIDIA’s entry-level product, the GT 1030, released in 2017, matches the GP201 in terms of clock speed, TFLOPS, and power consumption, with eBay prices generally below $50. The GT 1030 benefits from mature NVIDIA drivers, making it difficult for LinJoWing to reach this level. However, LinJoWing’s ability to enter production after only three years of establishment gives it a competitive edge over other Chinese graphics cards.

This year, LinJoWing also surpassed its competitor Loongson in the low-end GPU market. However, challenging its biggest competitor, Moore Threads, will require further effort. Currently, Moore Threads’ flagship GPU’s specifications can rival NVIDIA’s RTX 3060 Ti.

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(Photo credit: AMD)

“The Dawn of Generative AI Has Come!” This new chapter in the course of human technological evolution was first introduced by NVIDIA’s founder, Jensen Huang. Qualcomm’s CEO, Cristiano Amon, also shares this optimism regarding generative AI. Amon believes this technology is rapidly evolving and being adopted for applications such as mobile devices. It is expected to have the potential to radically transform the landscape of the smartphone industry. Similarly, Intel has declared the arrival of the “AI PC” era, signaling a major shift in computing-related technologies and applications.

This year, AI is transitioning from cloud computing to on-premise computing. Various “AI PCs” and “AI smartphones” are being introduced to the market, offering a wide range of selections. The current year of 2024 is even being referred to as the “Year of AI PC,” with brands such as Asus, Acer, Dell, Lenovo, and LG actively releasing new products to capture market share. With the rapid rise of AI PCs and AI smartphones, revolutionary changes are expected to occur in workplaces and people’s daily lives. Furthermore, the PC and smartphone industries are also expected to be reinvigorated with new sources of demand.

An AI PC refers to a laptop (notebook) computer capable of performing on-device AI computations. Its main difference from regular office or business laptops lies in its CPU, which includes an additional neural processing unit (NPU). Examples of AI CPUs include Intel’s Core Ultra series and AMD’s Ryzen 8040 series. Additionally, AI PCs come with more DRAM to meet the demands of AI computations, thereby supporting related applications like those involving machine learning.

Microsoft’s role is crucial in this context, as the company has introduced a conversational AI assistant called “Copilot” that aims to seamlessly integrate itself into various tasks, such as working on Microsoft Office documents, video calls, web browsing, and other forms of collaborative activities. With Copilot, it is now possible to add a direct shortcut button for AI on the keyboard, allowing PC users to experience a holistic collaborative relationship with AI.

In the future, various computer functions will continue to be optimized with AI. Moreover, barriers that existed for services such as ChatGPT, which still require an internet connection, are expected to disappear. Hence, AI-based apps on PCs could one day be run offline. Such a capability is also one of the most eagerly awaited features among PC users this year.

Surging Development of LLMs Worldwide Has Led to a Massive Increase in AI Server Shipments

AI-enabled applications are not limited to PCs and smartphones. For example, an increasing number of cloud companies have started providing services that leverage AI in various domains, including passenger cars, household appliances, home security devices, wearable devices, headphones, cameras, speakers, TVs, etc. These services often involve processing voice commands and answering questions using technologies like ChatGPT. Going forward, AI-enabled applications will become ubiquitous in people’s daily lives.

Not to be overlooked is the fact that, as countries and multinational enterprises continue to develop their large language models (LLMs), the demand for AI servers will increase and thus promote overall market growth. Furthermore, edge AI servers are expected to become a major growth contributor in the future as well. Small-sized businesses are more likely to use LLMs that are more modest in scale for various applications. Therefore, they are more likely to consider adopting lower-priced AI chips that also offer excellent cost-to-performance ratios.

TrendForce projects that shipments of AI servers, including models equipped with GPUs, FPGAs, and ASICs, will reach 1.655 million units in 2024, marking a growth of 40.2% compared with the 2023 figure. Furthermore, the share of AI servers in the overall server shipments for 2024 is projected to surpass 12%.

Regarding the development of AI chips in the current year of 2024, the focus is on the competition among the B100, MI300, and Gaudi series respectively released by NVIDIA, AMD, and Intel. Apart from these chips, another significant highlight of this year is the emergence of in-house designed chips or ASICs from cloud service providers.

In addition to AI chips, the development of AI on PCs and smartphones is certainly another major driving force behind the technology sector in 2024. In the market for CPUs used in AI PCs, Intel’s Core Ultra series and AMD’s Ryzen 8000G series are expected to make a notable impact. The Snapdragon X Elite from Qualcomm has also garnered significant attention as it could potentially alter the competitive landscape in the near future.

Turning to the market for SoCs used in AI smartphones, the fierce competition between Qualcomm’s Snapdragon 8 Gen 3 and MediaTek’s Dimensity 9300 series is a key indicator. Another development that warrants attention is the adoption of AI chips in automotive hardware, such as infotainment systems and advanced driver assistance systems. The automotive market is undoubtedly one of the main battlegrounds among chip suppliers this year.

The supply chain in Taiwan has played a crucial role in providing the hardware that supports the advancement of AI-related technologies. When looking at various sections of the AI ecosystem, including chip manufacturing as well as the supply chains for AI servers and AI PCs, Taiwan-based companies have been important contributors.

Taiwan-based Companies in the Supply Chain Stand Ready for the Coming Wave of AI-related Demand

In the upstream of the supply chain, semiconductor foundries and OSAT providers such as TSMC, UMC, and ASE have always been key suppliers. As for ODMs or OEMs, companies including Wistron, Wiwynn, Inventec, Quanta, Gigabyte, Supermicro, and Foxconn Industrial Internet have become major participants in the supply chains for AI servers and AI PCs.

In terms of components, AI servers are notable for having a power supply requirement that is 2-3 times greater than that of general-purpose servers. The power supply units used in AI servers are also required to offer specification and performance upgrades. Turning to AI PCs, they also have higher demands for both computing power and energy consumption. Therefore, advances in the technologies related to power supply units represent a significant indicator this year with respect to the overall development of AI servers and AI PCs. Companies including Delta Electronics, LITE-ON, AcBel Polytech, CWT, and Chicony are expected to make important contributions to the upgrading and provisioning of power supply units.

Also, as computing power increases, heat dissipation has become a pressing concern for hardware manufacturers looking to further enhance their products. The advancements in heat dissipation made by solution providers such as Sunon, Auras, AVC, and FCN during this year will be particularly noteworthy.

Besides the aforementioned companies, Taiwan is also home to numerous suppliers for other key components related to AI PCs. The table below lists notable component providers operating on the island.

With the advent of generative AI, the technology sector is poised for a boom across its various domains. From AI PCs to AI smartphones and a wide range of smart devices, this year’s market for electronics-related technologies is characterized by diversity and innovation. Taiwan’s supply chain plays a vital role in the development of AI PCs and AI servers, including chips, components, and entire computing systems. As competition intensifies in the realm of LLMs and AI chips, this entire market is expected to encounter more challenges and opportunities.

Join the AI grand event at Computex 2024, alongside CEOs from AMD, Intel, Qualcomm, and ARM. Discover more about this expo! https://bit.ly/44Gm0pK

(Photo credit: Qualcomm)

As Moore’s Law progresses, transistors are becoming smaller and denser, with more layers stacked on top of each other. This may require passing through 10 to 20 layers of stacking to provide power and data signals to the transistors below, leading to increasingly complex networks of interconnects and power lines. Simultaneously, as electrons transmit downward, IR drop phenomena occur, resulting in power loss.

Apart from power loss, the occupation of space by power supply lines is also a concern, which often occupies at least 20% of resources. Addressing the issue of signal network and power supply network resource contention to miniaturize components becomes a major challenge for chip designers. As per a report from TechNews, this has led the semiconductor industry to begin shifting power supply networks to the backside of chips.

• TSMC’s Super Rail Technology Set to Revolutionize Chip Efficiency with A16 Process Node Debut in 2025

Leading semiconductor foundry TSMC recently unveiled its A16 process at a technical forum in North America.

This new node not only accommodates more transistors, enhancing computational efficiency, but also reduces energy consumption. Of particular interest is the integration of the Super PowerRail architecture and nanosheet transistors in the A16 chip, driving the development of data center processors that are faster and more efficient.

Notably, TSMC’s A16 employs a different chip wiring manner, with power wires delivering electricity to transistors located beneath rather than above them, known as backside power supply, facilitating the production of more efficient chips.

In fact, one of the methods to optimize processors is to alleviate IR drop, a phenomenon that reduces the voltage received by the transistors on the chip, consequently affecting performance. The A16 wiring is less prone to voltage drops, simplifying power distribution and allowing for tighter chip packaging, aiming to accommodate more transistors to enhance computational capabilities.

Additionally, TSMC’s A16 process technology directly connects the power transmission lines to the source and drain of the transistor, which improves chip efficiency.

Using the Super PowerRail in A16, TSMC achieves an 10% higher clock speed or a 15% to 20% decrease in power consumption at the same operating voltage (Vdd) compared to N2P. Moreover, the chip density is increased by up to 1.10 times, supporting data center products.

• Intel’s PowerVia Set for Production on Intel 20A in 2024

Similar to TSMC’s Super PowerRail, Intel has also introduced its backside power delivery solution, PowerVia.

According to Intel, power lines typically occupy around 20% of the space on the chip surface, but PowerVia’s backside power delivery technology saves this space, allowing  more flexibility in the interconnect layers.

In addition, the Intel team previously created the Blue Sky Creek test chip to demonstrate the benefits of backside power delivery technology. Test results indicated that most areas of the chip achieved over 90% cell utilization, with a 30% platform voltage droop improvement, 6% frequency benefit, increased unit density, and potential cost reduction. The PowerVia test chip also exhibited excellent heat dissipation properties, aligning with expectations for higher power density as logic shrinks.

Furthermore, PowerVia is slated to be integrated into Intel Foundry Services (IFS), enabling faster achievement of product efficiency and performance enhancements for customer-designed chips.

According to official documentation from Intel, the tech giant plans to implement PowerVia on Intel 20A process technology along with the RibbonFET architecture for the full-surround gate transistor. Production readiness is expected in the first half of 2024, with initial steps being taken at the fabrication plant for future mass production of client ARL platforms.

• Samsung Plans to Implement SF1.4 Process by 2027

In addition to leading the transition to GAA transistor technology, Samsung, another competitor of TSMC, is also wielding its Backside Power Delivery Network as a key weapon in the pursuit of advanced processes.

According to a previous report from Samsung, Jung Ki-tae Jung, Chief Technology Officer of Samsung’s foundry division, announced plans to apply the backside power delivery technology to the 1.4-nanometer process by 2027.

Reports from Korean media outlet theelec indicate that compared to traditional front-end power delivery networks, Samsung’s backside power delivery network successfully reduces wafer area consumption by 14.8%, providing more space on the chip to accommodate additional transistors, thereby enhancing overall performance.

Additionally, wiring length is reduced by 9.2%, aiding in resistance reduction to allow more current flow, leading to lower power consumption and improved power transmission conditions. Samsung Electronics representatives noted that the mass production timeline for semiconductor chips adopting backside power delivery technology may vary depending on customer schedules, and Samsung is currently investigating customer demand for the application of this technology.

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• [News] Battle of the Titans in the Angstrom Era – TSMC’s A16 Competes with Intel’s 14A and Samsung’s SF1.4