China’s SMIC, ranked 3rd in foundries… Still ‘promoting semiconductors’ despite US restraint
SMIC, the world’s third-largest semiconductor foundry in China, is steadily increasing its sales despite US semiconductor sanctions. On the 9th, SMIC announced that its sales for the second quarter (April to June) were $1.9128 billion, up 21.8% from $1.5604 billion in the same quarter last year.
It is an 8.6% increase compared to the previous quarter’s $1.75 billion. According to market research firm TrendForce, the company ranked third in sales share in the first quarter, following TSMC and Samsung Electronics, and also surpassed Taiwan UMC ($1.75 billion) in the second quarter.
Despite the sluggish foundry industry, SMIC recorded shipments of 2.11 million units, up 18% quarter-on-quarter based on 8-inch conversion. The factory utilization rate also recovered from 78.3% in the second quarter of last year to 85.2% in the second quarter of this year.
Infineon Malaysia Plant Completed… “1 Trillion Won Investment”
In Malaysia, which is pushing to become the ‘semiconductor hub’ of Southeast Asia, a semiconductor factory has opened in which German semiconductor company Infineon is investing a total of 700 million euros (approximately 1.4 trillion won).
According to Bloomberg News and Germany’s dpa news agency on the 9th (local time), Infineon held a ceremony to mark the completion of the first phase of its local factory in Kulim, Kedah, northern Malaysia, the day before.
The plant, which opened in the first phase with an investment of 200 million euros (approximately 297 billion won), will mainly produce silicon carbide (SiC) power semiconductors starting this fall. In addition, a second phase expansion project is planned with an additional investment of 500 million euros (approximately 744 billion won).
Semes, Korea Institute of Industrial Technology and ‘Semiconductor Manufacturing Innovation’ MOU
Semes, a semiconductor equipment manufacturer, announced on the 9th that it signed a business agreement (MOU) for semiconductor manufacturing innovation with the Korea Institute of Industrial Technology at its Cheonan plant on the 7th.
This agreement was promoted with the goal of commercializing development projects through technological exchanges between the two organizations. It includes establishing a mutual cooperation system such as joint research, information exchange, and personnel exchange using Semes’ semiconductor process data.
The two companies plan to conduct research by dividing it into short-term development items and mid- to long-term development items. The plan is to apply artificial intelligence (AI) manufacturing technology to advanced semiconductor equipment.
Intel, ‘in the middle of nowhere’, sued by shareholders
Intel CEO Pat Gelsinger and CFO David Zinsner are being sued by shareholders, who claim that Intel covered up management problems and financial difficulties, causing the stock price to inflate, and that when the company restructured due to poor performance, the stock price plummeted, causing huge losses for investors.
According to Reuters and others on the 7th (local time), Intel shareholders filed a lawsuit in the San Francisco Federal Court, claiming that Intel, CEO Gelsinger, and CFO Zinsner violated securities laws. The shareholders pointed out Intel’s positive remarks this year emphasizing the foundry business.
Padu, Sales Diversification Achievement… Supplying SSDs to Server Manufacturers
Padu, a semiconductor design specialist (fabless) company, announced on the 5th that it will supply 2.6 billion won worth of solid state drives (SSDs) to a global server manufacturer. Padu plans to supply the products through the customer’s purchasing agent.
Padu’s side said, “We have mainly supplied controllers to big tech companies so far,” and added, “The significance of this SSD supply contract lies in the fact that Padu has successfully diversified its customer base from big tech companies, SSD companies, NAND flash memory manufacturers, to server companies.” He continued, “In particular, the global server manufacturer that we have attracted as a new customer this time is expected to generate repeated orders in the future, as it is conducting sales activities targeting the global market based on its unrivaled transaction network.”
Rebellion-Sapion, merger ratio 2.4 to 1… AI semiconductor unicorn with a market cap of 1.1 trillion won
The merger ratio of NPU (Neural Processing Unit) fabless startup Rebellion and Sapion Korea has been decided at approximately 2.4 to 1. Rebellion’s value has increased compared to the draft initially discussed. The two companies plan to sign a merger agreement at this ratio soon.
According to the relevant industry on the 8th, Rebellion and Sapion Korea confirmed the merger ratio between the two companies at 2.426 to 1 through the shareholders’ meeting the previous day. The merger discussion was initially conducted at a 2 to 1 level, but the ratio was adjusted due to differences of opinion between the shareholders of the two companies. The corporate value is 806.6 billion won for Rebellion and 332.5 billion won for Sapion Korea, and the corporate value of the combined company is 1.1391 trillion won.
After the merger, the surviving corporation was decided to be Sapion Korea. However, after the merger, the company name will be changed to Rebellion, and Rebellion’s executives, including CEO Park Sung-hyun, will oversee the management of the merged corporation. There is an interpretation that Sapion Korea was decided to survive due to tax issues of Sapion Inc. , a U.S. corporation that currently holds 100% of the shares, in the event of the current demise of Sapion Korea.
‘Semiconductor Wind Vane’ Micron Resumes Share Buybacks After 2 Years
Micron Technology, a U.S. company considered a weather vane in the memory semiconductor industry, has resumed its own stock repurchase program after two years, Bloomberg reported on the 7th (local time). Micron Technology’s board of directors approved the stock repurchase program in May 2018. However, due to the semiconductor industry downturn, it temporarily suspended stock repurchases in December 2022.
In the document submitted that day to resume buybacks of its own shares, the company explained, “We have decided that we can resume buybacks as the situation improves.”
LNF “Investment speed adjustment needed…New business to proceed as planned”
L&F, a cathode material specialist, is experiencing continued quarterly performance deterioration due to the stagnation in demand for electric vehicles (chasm). As it is difficult to expect a short-term performance recovery, it is considering adjusting the pace of investment. However, it plans to proceed with the investment required for new businesses such as mid-nickel and lithium iron phosphate (LFP) battery cathode materials as originally planned.
L&F announced this policy during the second quarter earnings conference call. They said they will review the specific mid- to long-term production capacity (CAPA) plan adjustments further and announce them later. The company recorded sales of KRW 554.8 billion and an operating loss of KRW 84.2 billion for the second quarter of this year on a consolidated basis. Sales fell 59.4% year-on-year, and operating profit and net profit turned into deficits.
Battery cell prices fall again as lithium prices fall
As the price of lithium, a raw material for batteries, falls, battery cell prices are also continuing to fall. According to market research firm TrendForce on the 6th (local time), battery cell prices fell 2% last month compared to the previous month.
The analysis is that the cost of battery raw materials has decreased due to the combination of falling prices of cathode materials and battery metals such as cobalt, nickel, and especially copper, and the price of battery cells has also decreased. The average prices (ASP) of prismatic ternary, lithium iron phosphate (LFP), and pouch-type ternary battery cells are 0.48 yuan per watt-hour, 0.41 yuan per watt-hour, and 0.5 yuan per watt-hour, respectively.
The price of batteries for energy storage systems (ESS) has fallen further.
Hyundai Glovis and China’s Huayou Cobalt Collaborate on ‘Battery Recycling’
Hyundai Glovis announced on the 5th that it will cooperate with Chinese electric vehicle battery material company Huayou Cobalt in the field of used electric vehicle battery recycling. This is the start of a full-scale attack on the battery recycling market, which is expected to grow by an average of 17% per year.
Hyundai Glovis signed a business agreement (MOU) with China’s Zhejiang Huayu Lithium Cycling Technology (Huayu Lithium Cycle) to establish collaboration in the electric vehicle battery business. Huayu Lithium Cycle is a wholly owned subsidiary of Huayou Cobalt.
Huayou Cobalt is the world’s number one producer of cobalt, a battery material. It also has the world’s second largest production capacity for high-nickel precursors, a battery material, and the world’s third largest production capacity for high-nickel cathodes.
Lotte Energy Materials Delays Completion of Spanish Copper Foil Plant by 2 Years
Lotte Energy Materials has postponed its investment plan for its copper foil plant in Spain due to the electric vehicle chasm.
According to the electronic disclosure system on the 7th, Lotte Energy Materials announced the previous day that it had changed the completion date of its copper foil plant in Spain from 2025 to June 2027. Accordingly, the investment amount in Spain this year, which was scheduled to be 180 billion won, was adjusted to 25 billion won.
Lotte Energy Materials previously announced that it would build a factory in Monroe, Catalonia, Spain, in line with its business investment plan to explore new markets in Europe. The plan is to invest a total of KRW 560 billion to build a smart factory capable of producing 30,000 tons of high-end copper foil for electric vehicle batteries annually.
IAM, MOU with China’s No. 1 Copper Company for Composite Copper Business… Commercialization Accelerated
IM, which is challenging the world’s first roll-unit continuous composite copper foil production, is establishing a technical cooperation system with China’s Nuodegufen and accelerating commercialization.
IAM announced on the 6th that it signed a memorandum of understanding (MOU) on technology exchange related to composite copper foil with NuoDe, a Chinese copper foil specialist.
The two companies agreed to cooperate on the technology required for commercializing composite copper foils, as well as to test IM’s prototypes on the cell lines of large Chinese secondary battery companies. They are also discussing with Nuodegufen about cooperation in the development of electronic substrate-related materials and high-end flexible copper clad laminates (FCCL).
Chinese products also benefit from US subsidies… Korean cathode materials investment reduced due to lower competitiveness
As the supply of cheap Chinese products increases and the US Inflation Reduction Act (IRA) regulation is postponed, the competitiveness of domestic cathode material companies is declining. POSCO Future M, the only domestic cathode material producer, recently reduced its cathode material expansion plan to half of its previous level, and companies that declared their entry into the cathode material market are unable to make specific investment plans.
According to market research firm SNE Research on the 9th, the average price of cathode materials per kg in the first half of this year was $5 for natural graphite and $4.5 for artificial graphite. Compared to the peak two years ago, the price of natural graphite cathode materials has fallen by about 50%, and the price of artificial graphite has fallen by about 30%.
POSCO Future M recently cut its 2026 cathode material production target by nearly half, from 221,000 tons to 113,000 tons. This is because it judged that even if production capacity is increased, demand will not be able to keep up for the time being, given that Chinese cathode materials are still strong in the market.
China BTR to Invest 1 Trillion in Building Battery Cathode Material Factory in Indonesia
According to Indonesia’s Antara News Agency and other sources on the 7th (local time), a cathode material factory in Kendal, Central Java, Indonesia, in which BTR and Singaporean investment company Stella Investment invested 478 million USD (approximately 660 billion KRW), opened its doors that day.
The plant will produce 80,000 tons of cathode materials for automobile batteries annually by taking graphite products produced at the Morowali plant in Indonesia.
BTR will also invest an additional $299 million (approximately KRW 400 billion) starting in the fourth quarter to begin construction of the second phase of the plant, increasing cathode material production to 160,000 tons per year.
Hyundai Motors and Kia Motors Successfully Demonstrate Self-Driving Delivery Robot Crosswalk Driving
Hyundai Motor Group announced on the 9th that it had successfully demonstrated a self-driving delivery robot driving on a crosswalk in front of Bugok Police Station in Uiwang-si, Gyeonggi-do.
The demonstration consisted of a scenario in which Hyundai Motor Company and Kia Motors’ autonomous delivery robot ‘Dali Delivery’ recognized signal information in connection with a traffic system and crossed a crosswalk. The successful demonstration on this day is significant in that it was the first demonstration of a robot crossing a crosswalk using traffic signal information since the revision of the relevant law.
Last year, as the Road Traffic Act and the Intelligent Robot Development and Distribution Promotion Act were revised and implemented, outdoor mobile robots that received operational safety certification and were insured now have the same rights as pedestrians.
Baemin, countdown to on-site deployment of delivery robots
Woowa Brothers, which operates Baemin, announced on the 9th that its self-developed delivery robot Dilly received safety certification for outdoor mobile robot operation from the Korea Robot Industry Advancement Institute on the 26th of last month.
Outdoor mobile robot operation safety certification is a mandatory certification that must be obtained in order to operate delivery robots in areas corresponding to sidewalks under the Road Traffic Act, according to the Intelligent Robot Development and Distribution Promotion Act passed last year.
The certification agency evaluates outdoor mobile robots with a maximum speed of 15 km/h or less and a mass of 500 kg or less on 16 items including operating speed, stability, security, and control devices. Dilly passed all 16 items, becoming the 6th robot to be certified in Korea.
Hyundai Elli and Kakao Mobility Sign MOU on ‘Robot Linkage’
Hyundai Elevator announced on the 8th that it signed a business agreement (MOU) with Kakao Mobility on the 7th for the commercialization of elevator-robot linkage services. The MOU was signed at the Kakao Mobility headquarters in Seongnam, Gyeonggi Province, with officials including Cho Jae-cheon, CEO of Hyundai Elevator, and Ryu Keung-seon, CEO of Kakao Mobility in attendance. The two companies plan to actively cooperate in establishing standard specifications for elevator-robot linkage and in commercializing the service.
This MOU includes the following: ▲Development of interoperability standards applicable to robot services and universal buildings where humans and robots coexist; ▲Establishment of a technology enhancement council; ▲Promotion of strategic collaboration in sales and promotion; ▲Establishment of a foundation for market leadership through user experience and data preemption; ▲Discussions on cooperation across vertical logistics within buildings.
Seoul Semiconductor Surpasses Nichia, Becomes World’s No. 1 Display LED Market
Seoul Semiconductor announced on the 8th that it has achieved first place in the global backlight market for the first time since its establishment. Seoul Semiconductor had maintained second place from fourth place in 2017 until 2022, but has now risen to the top for the first time.
According to market research firm Omdia, Seoul Semiconductor recorded a 16.5% share of the global LED backlight market in 2023 based on sales. It took first place, beating out Japan’s Nichia, which had been the leader in the LED field.
Seoul Semiconductor is a specialized optical semiconductor company that provides LED products and optical solutions for lighting, automobiles, and displays. In the display sector in particular, it provides customized LED solutions for TV, monitor, and automobile applications through heat dissipation, local dimming (split screen operation), and optical design based on ‘WICOP’ technology.
Samsung and LG Display Enjoy Special iPhone OLED Offers
According to the display industry, Samsung Display and LG Display have switched to mass production of OLED panels for the iPhone 16 series since last month.
Apple’s iPhone 16 shipments this year are estimated at around 90 million units. OLED panel shipments are known to be around 120 million units, which is about 30% more than that. The expected OLED supply volume (forecast) is around 80 million units for Samsung Display by the end of the year, and 43 million units for LG Display.
Both Samsung Display and LG Display are expected to see improved performance in the second half of the year with full-scale supply of OLED panels.
“OLED for IT Preemption” Samsung Display Core Developers Gather in Asan
Samsung Display is dispatching a large number of key development engineers to the world’s first 8.6 generation organic light-emitting diode (OLED) line for information technology (IT) devices being built in Asan, South Chungcheong Province.
This is a preliminary work to create an optimized mass production environment in the process of entering full-scale setup after the first equipment was brought in in March of this year. It is interpreted as a drive to drive the business to fend off China’s pursuit in the highly profitable IT OLED market and maintain the lead over its competitor, LG Display.
Source: kipost.net