[Core News] Intel’s cost reduction transformation, Samsung and TSMC join hands to develop HBM

1. Qualcomm is rumored to be exploring the acquisition of part of Intel’s chip design business

At a time when Intel is in financial trouble, Qualcomm is exploring the possibility of acquiring part of its chip design business. It has shown strong interest in Intel's customer PC design business and is also evaluating the potential value of its entire design unit.Sources said that acquiring other businesses such as Intel servers would have limited meaning for Qualcomm.

In response, an Intel spokesperson responded that Qualcomm has not yet contacted it regarding potential acquisitions, and made it clear that Intel is firmly committed to the PC business and declined to comment further on related plans.If this acquisition ultimately goes through, it will help Qualcomm expand its influence in the PC chip market, or reshape the current market competition landscape.

2. Intel entrusts TSMC with all processes below 3 nanometers to promote cost reduction and transformation

Affected by the hindered development of its foundry business, Intel has decided to entrust TSMC with all advanced processes below 3 nanometers. At the same time, it has launched a plan to lay off 15% of its global workforce in an effort to reverse its business decline.Semiconductor industry insiders revealed that the investment cost of advanced processes is high, and the industry has a winner-takes-all pattern. Starting from the Lunar Lake series, Intel CPUs will be fully manufactured by TSMC and bear the TSMC Inside logo.

Intel's latest financial report shows that the loss of the wafer foundry business expanded to US$2.8 billion, and the operating profit margin was as low as -65.5%; the company admitted that the expansion of production capacity of the Intel 3 and Intel 4 processes in the Irish factory has further intensified the profit pressure.In order to reduce costs and increase efficiency, Intel plans to save US$10 billion in costs in 2025, sell some non-core businesses, suspend dividends (the first time in 30 years), and slow down the pace of global expansion.Industry insiders emphasized that Intel has no retreat and needs to reduce unnecessary expenditures and concentrate resources on its core chip business.

3. Samsung and TSMC join hands for the first time to jointly develop unbuffered HBM4 memory

According to Korean media, the director of TSMC’s Ecosystem and Alliance Management Office stated at an industry event in Taipei on September 5 that it is cooperating with Samsung Electronics to develop unbuffered HBM4 memory.This is the first time that the two companies have disclosed their cooperation in the field of HBM memory in the context of competition in the fields of advanced processes and packaging.

Unbuffered HBM4 memory is a special variant of HBM4 that eliminates the buffer used to distribute voltage and prevent electrical problems, further optimizing performance and cost.It is reported that Samsung’s first batch of standard version HBM4 memory will be launched in 2025. Li Zhenpei, president of memory business of Samsung DS department, revealed that it is currently cooperating with a number of wafer factories including TSMC to provide more than 20 customized HBM memory solutions.

4. Broadcom’s third-quarter revenue surged 47%, and full-year AI revenue is expected to reach US$12 billion.

Broadcom announced its financial report for the third fiscal quarter of fiscal year 2024 (as of August 4), with outstanding core performance: revenue of US$13.07 billion, a year-on-year increase of 47%; calculated on a GAAP basis, a net loss of US$1.875 billion (net profit of US$3.303 billion in the same period last year); calculated on a non-GAAP basis, net profit reached US$6.12 billion, a year-on-year increase of approximately 33%.

Broadcom President and CEO Hock Tan said that the third quarter performance benefited from the company's continued efforts in AI semiconductor and VMware businesses. AI-related revenue is expected to reach US$12 billion in fiscal 2024, mainly driven by Ethernet chips and AI data center custom accelerators.At the same time, Broadcom expects fourth-quarter revenue to be approximately US$14 billion, continuing its growth trend.

5. Analysts raise iPhone 16 series shipment estimates

Analyst Ming-Chi Kuo issued a document saying that the estimated shipments of the iPhone 16 series in 2024 will be raised from 87 million to 88 million units to 88 million to 89 million units. Apple's additional orders will mainly focus on the iPhone 16 standard version.

Specifically, the shipment proportions of iPhone 16, iPhone 16 Plus, iPhone 16 Pro and iPhone 16 Pro Max in 2024 will be 26%, 6%, 30% and 38% respectively; shipments in August and September were 9 million units and 16 million units respectively.Based on the timing of the new product launch, it is estimated that the initial sales volume of the iPhone 16 series will reach 15 million to 17 million units, and Q4 shipments in 2024 are expected to reach about 63 million units.

6. Xianxin Technology mass-produces the world’s first 28nm embedded RRAM image quality adjustment chip

Recently, the world's first 28nm embedded RRAM image quality adjustment chip participated in the development of Beijing Yizhuang Enterprise Display Technology has been mass-produced in Beijing and has been successfully used in the Mini LED high-end TV series of domestic leading customers, marking that my country's display chips have reached a new level of semiconductor technology.