Daily: Rapidus develops their 2nm node
7.5 min read.
Highlights
HBM supply chain in Japan. An insightful piece in TrendForce explaining how, though we think of HBMs as a largely Korean product, a lot of the critical materials and equipment that underpin the technology comes from Japanese companies.
Rapidus advances 2nm node. In a changing foundry environment, Rapidus is reportedly making headway on their advanced 2nm node, which is reportedly on par with TSMC and ahead of Intel. There’s still a long way to go, re: testing etc., but it would be a game changer if there is another cutting-edge foundry beyond TSMC (and Samsung and Intel).
G42’s chips and customers. Abu Dhabi’s G42, an AI firm, which signed a major purchase agreement with Nvidia in May, is expected to acquire chips from other companies including AMD, Cerebras and Qualcomm, and have customers with major American tech companies including AWS, Microsoft, and Google.
Thanks for reading.
1. Policy and Geopolitics
1.1
Reuters (09/01): Abu Dhabi-backed G42 aims to diversify chip suppliers for AI campus, Semafor reports
Abu Dhabi-backed technology group G42 aims to diversify chip suppliers beyond Nvidia for the UAE-U.S. AI campus, Semafor reported on Monday, citing a person with direct knowledge of the talks.
The group is negotiating with major American technology firms, including Amazon's AWS cloud, Microsoft, Meta, and Elon Musk's xAI to become tenants at the data center, with Google the furthest along in negotiations, according to the report.
The G42 is looking to chipmakers AMD, Cerebras Systems, and Qualcomm to supply some of the computing capacity at the campus, the report said.
1.2
Chosun Daily (09/01): Nvidia's Jensen Huang to join APEC summit in South Korea
Nvidia chief executive Jensen Huang will attend the Asia-Pacific Economic Cooperation summit in Gyeongju this October, a high-profile addition to Seoul’s effort to position itself at the center of global debates on artificial intelligence and semiconductors.
The visit comes as Washington and Seoul pursue a sweeping strategic alliance spanning technology and the economy, stoking expectations that companies in both countries will accelerate joint initiatives.
2. Economy, Finance, and Business
2.1
Bloomberg (09/01): Samsung, SK Hynix Sag After US Revokes China Chip Permits
Samsung Electronics Co. and SK Hynix Inc. shares slid Monday after the Trump administration decided to make it harder for the world’s largest memory chipmakers to ship critical equipment to their giant Chinese operations.
The surprise ruling deals a potential blow to their production in the world’s largest semiconductor market. While both Korean companies have memory plants in Korea, China accounts for a major slice of their global output. Samsung sank more than 2%, while SK Hynix stock was more than 4% lower in morning trading.
Samsung and Hynix compete with Micron Technology Inc. to make key components for most electronics from Apple Inc. iPhones to Nvidia Corp. AI servers. The pair had operated in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. They now have 120 days until the waiver expires, according to an announcement in the US Federal Register. Companies can seek licenses to continue operations.
2.2
Reuters (08/29): Huawei's first-half profit plunges on heavy R&D spending
Chinese tech giant Huawei reported a 32% drop in first-half net profit on Friday as it continued to spend heavily on research and development to offset the impact of U.S. sanctions.
Net profit for January to June dropped 32% year-on-year to 37 billion yuan ($5.17 billion), the company reported, but revenue rose 4% to 427 billion yuan, its highest first-half revenue since 2020.
It spent 96.9 billion yuan on research and development in January-June, up from 88.9 billion yuan in the first six months of last year.
2.3
SCMP (09/01): Chip designer Cambricon, China’s ‘little Nvidia’, stays in the spotlight amid potential
Shares of Cambricon Technologies on Monday closed lower on the Shanghai Stock Exchange after a representative of Alibaba Group Holding denied speculation that it had ordered 150,000 graphics processing units (GPUs) from the Beijing-based AI chip designer.
According to the representative, the platform of Alibaba Cloud – the artificial intelligence and cloud computing services unit of e-commerce giant Alibaba – was powered by multiple Chinese-designed GPUs. Alibaba owns the South China Morning Post.
Cambricon’s shares closed down 2.95 per cent to 1,448.39 yuan on Monday. Still, that marked the day’s largest turnover on the mainland, which recorded 25 billion yuan worth of trades. The stock has more than doubled in price as of August and surged fivefold in the previous 12 months.
2.4
SCMP (09/01): SMIC to take full control of subsidiary chip foundry as China’s fab industry consolidates
Semiconductor Manufacturing International Corporation (SMIC), China’s largest contract chipmaker, said it planned to buy all of a foundry it controls as the nation’s fab industry undergoes a wave of consolidation.
In a statement last week, the company said it planned to buy the remaining equity interest in Semiconductor Manufacturing North China (Beijing) Corporation (SMNC), a subsidiary that is currently 51 per cent owned by SMIC.
The chipmaker said it would buy the stake from state-owned investors including the China Integrated Circuit Industry Investment Fund, the Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre, Beijing E-Town International Investment & Development and Zhongguancun Development Group.
3. Technology
3.1
TrendForce (09/02): Memory Giant, Fragile Link: Korea’s Reliance on Japan in HBM Supply Chain
According to ZDNet, South Korea may lead in memory products like DRAM and NAND flash, but it remains heavily dependent on Japan for critical materials. The report, citing sources, warns that unless localization advances more quickly, this reliance could become a structural risk for the country in the AI and HBM race.
The report notes that in SK hynix’s HBM value chain, the ultra-fine TSV (Through-Silicon Via) stacking structure relies on key materials and equipment largely monopolized by Japanese firms. It highlights underfill — essential for HBM stacking — as being supplied almost exclusively by Japan’s NAMICS. With few alternatives available, localization has been slow, the report adds.
In addition, SK hynix sources a large share of silicon wafer from Shin-Etsu Chemical, which today controls about 30% of the global semiconductor wafer market, the largest share worldwide, as the report indicates. According to the report, combined with SUMCO, Japan’s share in this sector is estimated to reach as much as 70% of the global market.
Japan remains central to HBM production, with SK hynix sourcing most of its photoresists (PR) from Tokyo Ohka Kogyo (TOK) and relying on JSR and Asahi Kasei for encapsulation materials (EMC), all critical to making HBM, the report notes.
3.2
TrendForce (09/01): Rapidus 2HP Reportedly Surpasses Intel 18A Logic Density Impacted by BSPDN, Rivals TSMC
Rapidus is preparing its cutting-edge 2nm node, named “2HP,” which is expected to deliver logic density on par with TSMC’s N2 and, more notably, well ahead of Intel’s 18A.
Rapidus 2HP is reported to reach a logic density of 237.31 MTr/mm², nearly matching TSMC’s N2 at 236.17 MTr/mm², according to sources cited by the report. The report further highlights that both nodes adopt High Density (HD) cell libraries — with a 138-unit cell height on a G45 pitch — configurations designed to maximize logic density, suggesting comparable transistor counts.
As for Intel, its 18A node, despite being a smaller node size, is reported at 184.21 MTr/mm² — a comparatively lower density. The report, citing sources, explains that Intel’s use of BSPDN contributes to this outcome, as it occupies part of the front-side metal layers and reduces the density measured in the HD library. However, the report notes that Intel places greater emphasis on performance-per-watt rather than raw density, so higher logic density is not its primary goal, particularly as 18A is intended largely for internal use.
3.3
TrendForce (09/01): Samsung Reportedly Restarts Taylor Equipment Orders, Appoints New Head to Lead Operations
After securing the $17 billion Tesla deal—a potential game-changer for its chip business, Samsung is reportedly restarting investment in its foundry facility in Taylor, Texas. According to etnews, the massive order came as a trigger for the company, with equipment investments estimated at roughly 4 trillion won.
Notably, as the report suggests, Samsung has appointed new leadership to directly oversee the Taylor foundry, shifting control from its Austin subsidiary as full-scale operations near. On the other hand, engineers are set to deploy in two waves—September and November—to install the foundry line, with equipment orders already underway, the report adds.
3.4
TrendForce (09/02): Samsung, SK hynix Reportedly Delay Phase-out to 2026 as DDR4 Becomes Unexpected Cash Cow
With DDR4 prices holding strong amid tight supply, memory giants that once planned to phase out the chip are now reversing course. South Korea’s Maeil Business Newspaper reports that Samsung and SK hynix will extend DDR4 production into next year.
Previously, as Commercial Times noted, both companies had aimed to end DDR4 shipments between late 2025 and early 2026. But citing industry sources on September 1, Maeil says Samsung will continue production through 2026, while SK hynix is taking the same approach—informing customers and boosting DDR4 output at its older Wuxi fabs in China.
The move, as per Maeil, has been sending DDR4 prices soaring. Commercial Times also points out that tight supply and rapidly dwindling inventories are restricting shipments, driving DDR4 module prices higher. DDR5 modules are also climbing amid constrained supply, highlighting the ongoing demand for legacy products, as Commercial Times suggests.