Daily: Shifting memory landscape; Huawei stuck at 7nm; DeepSeek for Chinese military
5 min read.
Highlights
Shifting memory landscape. Over the past year, I’ve written about how the shifting memory landscape was being under-reported. This seems to be the case less and less, with major memory news hitting the papers.
Following on from yesterday’s threats to revoke import licences for Samsung, SK Hynix, and TSMC, TrendForce offers analysis today on exactly how damaging that could be. TSMC’s Nanjing fab is its most profitable plant; 30-35% of Samsung’s NAND production comes out of China; and 35-40% of SK Hynix’s DRAM production comes from China. Last week, the WSJ reported based on an anonymous Commerce Dept source that the U.S. were considering new chip sanctions on China. Is this it?
Marvell unveiled the world’s first 2nm custom SRAM, boosting memory density and energy efficiency. Marvell, whose main bread and butter is designing advanced logic chips, is also pushing into the cutting-edge memory space, with custom CXL, custom HBM, and advanced packaging developments.
Huawei stuck at 7nm. Huawei’s latest laptop uses 7nm chips, the same node that they used to produce their smartphones two years ago. This suggests that the U.S. chip controls are working in holding back Chinese technological innovation. TSMC, Samsung, Intel are roughly at 2nm, which means Huawei are 3 nodes behind (2nm, 3nm, 5nm). It’ll likely be difficult for Huawei to break 5nm and lower without EUV, which they do not have access to and have not developed domestically.
DeepSeek for Chinese military. An anonymous U.S. official tells Reuters that Chinese AI firm DeepSeek is being used for China’s military and intelligence operations. And adding fuel to the debate on whether / how much sanctioned AI chips that DeepSeek used, the American official also says that the Chinese company circumvented export controls and accessed AI chips through Southeast Asia.
Thanks for reading.
1. Policy and Geopolitics
1.1
TrendForce (06/23): If US Revokes Chip Tool Exemptions: Unpacking TSMC, Samsung, and SK hynix’s China Operations
Notably, TSMC’s Nanjing fab, which produces 16nm and 28nm chips, is its most profitable overseas plant, bringing in NT$69 billion in annual revenue and NT$26 billion in net profit, according to its 2024 report. Meanwhile, its 8-inch Shanghai fab runs older 1.3μm and 1.8μm nodes, making it less vulnerable to the proposed license revocations, as per the Economic Daily News.
In terms of Samsung, its Xi’an plant is a major hub for NAND production. According to TrendForce, around 30–35% of Samsung’s total NAND output is expected to come from China in 2025.
Meanwhile, as per Business Korea, SK hynix’s footprint in China spans multiple sites: a DRAM factory in Wuxi, a packaging plant in Chongqing, and a NAND flash facility in Dalian, which it took over from Intel under the Solidigm brand.
TrendForce projects that by 2025, about 35–40% of SK hynix’s DRAM output will come from China. For SK hynix, China plays an even bigger role in NAND production, expected to account for 40–45% of its total NAND output in 2025, as noted by TrendForce.
1.2
Reuters (06/24): DeepSeek aids China's military and evaded export controls, US official says
AI firm DeepSeek is aiding China's military and intelligence operations, a senior U.S. official told Reuters, adding that the Chinese tech startup sought to use Southeast Asian shell companies to access high-end semiconductors that cannot be shipped to China under U.S. rules.
The U.S. conclusions reflect a growing conviction in Washington that the capabilities behind the rapid rise of one of China's flagship AI enterprises may have been exaggerated and relied heavily on U.S. technology.
1.3
FT (06/23): UK government to invest more than £500mn in quantum computing
The UK is to invest more than £500mn in emerging computing based on quantum physics that experts say has the potential to transform economic and national security.
The government’s support will be welcomed following questions about what would replace an ambitious Conservative pledge in 2023 to invest £2.5bn over 10 years in broader quantum technology and project Britain as a world leader.
The quantum industry’s backers say it has the capacity to transform areas from the discovery of advanced industrial materials to imaging of the human body. Quantum computers offer a route to improved communications security and may one day be able to break traditional encryption methods.
2. Economy, Finance, and Business
2.1
Bloomberg (06/23): Huawei’s New Laptop Adds to Evidence of Stalled Chip Advance
Huawei Technologies Co.’s latest computer product is powered by a chip manufactured using years-old technology, suggesting US sanctions are still preventing China from developing cutting-edge semiconductor technologies.
The processor in the MateBook Fold is built with domestic partner Semiconductor Manufacturing International Corp.’s 7-nanometer technology, according to Canada-based consultancy TechInsights, employing the same process technology adopted in the Mate 60 Pro that stunned US officials two years ago. Industry leader Taiwan Semiconductor Manufacturing Co. is expected to start mass producing 2nm chips, which is three generations ahead of 7nm, later this year.
2.2
FT (06/23): US semiconductor maker Wolfspeed to file for bankruptcy
Wolfspeed, a North Carolina manufacturer of semiconductors for electric vehicles, said it had struck a deal with creditors to reduce its near $6.5bn debt by more than two-thirds as a part of a bankruptcy package.
The transaction will nearly wipe out shareholders of the company, which had a market capitalisation last year of $4bn.
3. Technology
3.1
Semiconductor Insight (06/23): Marvell Launches Industry’s First 2nm Custom SRAM, Underscoring Its Deep IP Lead in AI Infrastructure
Marvell Technology has unveiled the industry’s first 2nm custom SRAM, setting a new benchmark in memory density and power efficiency for high-performance computing and AI infrastructure. The new offering, announced on June 17, underscores Marvell’s evolving position, not just as a design services provider but as a strategic IP powerhouse in the custom silicon ecosystem.
Built on cutting-edge 2nm process technology, the SRAM delivers up to 6 gigabits of high-speed memory and achieves industry-leading bandwidth per square millimeter. Marvell reports that the design can reclaim up to 15% of the total die area and reduce standby power consumption by as much as 66%, a critical improvement in the thermal and power-sensitive environments of cloud AI clusters.
This release is the latest in a string of memory innovations from Marvell, following its custom CXL implementations, custom HBM solutions, and multi-die packaging technologies. Together, they reflect a holistic strategy aimed at solving one of the thorniest challenges in AI compute infrastructure: moving data as fast as it’s being generated, without blowing past power and space constraints.
3.2
AnySilicon (06/23): Rapidus and Siemens Collaborate on 2nm Semiconductor Design
Rapidus Corporation has announced a strategic collaboration with Siemens Digital Industries Software to enhance semiconductor design and manufacturing for the 2nm generation.
Together, they will develop a process design kit using Siemens' Calibre platform for efficient verification and manufacturing optimization. This partnership supports Rapidus's Manufacturing for Design (MFD) concept, aiming to improve yield and reduce turnaround times.
3.3
Reuters (06/24): Snowcap Compute raises $23 million for superconducting AI chips
Snowcap Compute, a startup working on building artificial intelligence computing chips using superconducting technology, on Monday raised $23 million and said that the former CEO of Intel will join its board.
Snowcap aims to build computers that could one day beat today's best artificial intelligence systems, while using a fraction of the electricity. To do that, Snowcap plans to use a new kind of chip made with superconductors, which are materials that allow current to flow without electrical resistance.
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Cover Photo by Allison Saeng on Unsplash