Highlights
SK Hynix ships HBM4 samples. Weeks after Samsung shipping their HBM4 samples to customers, SK Hynix reached the same milestone. SK Hynix had dominance in the HBM3 generation, but Samsung has caught up and Micron is expected to follow soon, making the HBM space more competitive.
Apple raises prices. Apple is raising prices on its consumer electronics in light of rising memory costs. If you want to buy a new iPhone, tough luck; you can buy now or wait until the memory prices inevitably calm down, though you may be waiting a while.
CFMEE to IPO. China’s chipmaking equipment supplier CFMEE will IPO in Hong Kong next week. This follows a spate of listings from Chinese chip design firms as China barrels ahead in its chip self-sufficiency drive.
Thanks for reading.
1. Policy and Geopolitics
1.1
Reuters (06/17): US awards $500 million to Nvidia-backed SandboxAQ for finding new chipmaking materials
The U.S. government awarded $500 million on Wednesday to startup SandboxAQ to develop new chemicals and materials for domestic semiconductor manufacturing, including alternatives to PFAS and rare earth imports.
The award is part of President Donald Trump’s move to allocate research funds under the CHIPS Act, an effort that previously funded a $150 million investment in new chip manufacturing tools and a $2 billion investment in quantum computing.
2. Economy, Finance, and Business
2.1
WSJ (06/17): Apple to Raise Prices Due to Memory Chip Crunch, Tim Cook Says
Apple plans to raise prices on its products to offset the surging costs of memory and storage chips, Chief Executive Tim Cook said in an exclusive interview with The Wall Street Journal.
“Unfortunately, price increases are unavoidable,” he said. “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”
2.2
SCMP (06/17): Chinese chip-equipment maker CFMEE targets US$410 million in Hong Kong IPO
Chinese lithography and integrated circuit manufacturer Circuit Fabology Microelectronics Equipment (CFMEE) is set to launch a Hong Kong listing next week, as China continues its drive for semiconductor self-sufficiency amid US sanctions.
The company, based in Hefei, Anhui province, said on Wednesday that it would offer more than 12.8 million H shares globally at a price range of HK$240.09 to HK$252.73 apiece, raising up to HK$3.2 billion (US$410 million).
3. Technology
3.1
Reuters (06/18): Nvidia supplier SK Hynix ships samples of next-generation chips to major customers
SK Hynix said on Thursday it has shipped samples of its latest high-bandwidth memory (HBM) chips to major customers, as the South Korean chipmaker seeks to strengthen its position in the fast-growing AI semiconductor market.
The next-generation 12-layer HBM4E chip reaches speeds of up to 16 gigabits per second per pin and offers over 20% better power efficiency than previous models, the company said.
3.2
Reuters (06/17): Intel’s new manufacturing tech enters initial production
Intel on Tuesday said the new generation of its 18A manufacturing process has entered risk production, as the chipmaker sees strong demand for its central processors.
By moving 18A-P into initial production, Intel is aiming to show it is following through on its manufacturing commitments, potentially making the technology more appealing to external customers.
3.3
Bloomberg (06/17): ASML CEO Sees Musk’s Terafab as Test for Supply Lines
ASML Holding NV Chief Executive Officer Christophe Fouquet said the chip equipment maker has to make sure it doesn’t experience supply constraints when servicing new projects such as Elon Musk’s Terafab.
Fouquet said ASML is looking at how the project will progress and at what speed.
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