[Core Information] SMIC’s revenue reaches a new high, and two major Korean factories reduce NAND flash memory production

1. SMIC: Revenue will exceed US$8 billion for the first time in 2024, a year-on-year increase of 27%

• full year results: Revenue$8.03 billion(+27%); Profit$493 million(-45.4%); gross profit margin18.0%。
• Q4 performance: Revenue$2.207 billion(+31.5%); Profit$271 million(+14.2%); gross profit margin22.6%（+6.2pct）。
• Capacity structure：
  • Equivalent to 8-inch monthly production capacity by the end of the year948,000 pieces
  • 12-inch revenue share80.6%（+6.4pct）
  • Revenue share in China89.1%（+8.3pct）
  • annual shipments8.02 million pieces, capacity utilization rate85.6%
• 2025Q1 Outlook: Revenue month-on-month **+6%~+8%; Gross profit margin19%~21%**

2. Samsung and SK Hynix reduce NAND flash memory production to accelerate technology iteration

• Production reduction background: In response to oversupply, the old process line will be diverted238th floor / 286th floor / 321st floorWait for advanced stacking.
• Samsung: Level 128 is eliminated, and the main force is upgraded to176th floor → 238th floor → 286th floor。
• SK hynix: advance238th floor, 321st floormass production.
• Industry impact: Two Korean factories account for global NAND production capacity60%+, production cuts are expected to promotePrices will rebound in the second half of 2025。

3. Samsung adjusts 1cnm DRAM design to tackle HBM4 mass production

• core issues: 1cnm DRAM yield is only60%~70%, restricting the large-scale shipment of HBM4.
• Improvement plan: The core circuit line width remains unchanged,Relax peripheral circuit line widthrequest.
• Mass production target: Mass production of 1cnm DRAM will be launched in June 2025 to ensureHBM4Productivity and yield.
  

4. Yutai Micro: Automotive Ethernet chips are expected to enter BYD’s market and gain momentum

• Product application：100M / Gigabit vehiclePHY chipFor BYDlook up, take chargeseries.
• New product progress: Vehicle mountedEthernet switch chipClient joint testing is under way, planning to use PHY chipSales in complete sets。
• market position: Domestic automotive Ethernet chip leader, cumulative shipmentsOver 10 million pieces。

5. SUMCO reorganizes small-size wafers, and the Miyazaki plant will cease production at the end of 2026

• Adjust direction：200mm and belowSilicon wafer production capacity integration, Miyazaki plant converted toMonocrystalline silicon production。
• Capacity transfer：
  • 200mm → Nagasaki and Imari factories in Japan
  • 150mm → Indonesia factory
  • 125mm and below → Phased out
• Time node: Wafer processing at the Miyazaki plant will be completed by the end of 2026; employees will be transferred to300mmproduction line.

Summary of core trends

• OEM：SMICStrong local demand and continued expansion of production capacity, advanced/mature technology two-wheel drive.
• storage：NANDProduction reduction and price control + technology upgrade;DRAM focus1cnm+HBM4, AI computing power drives high-end demand.
• Car chip: Automotive Ethernet, SiC, etc.Domestic substitution accelerates, the penetration rate increased rapidly.
• Material：Silicon wafer direction300mmConcentrated, small size production capacityshrink exit, industry structure optimization.