Weekly News Roundup: China’s Litho Pivot, Huawei’s Lag, Apple’s OLED Play
- Naura Technology acquires Kingsemi to enhance China’s lithography tools.
- ASML’s High-NA EUV systems see slow adoption by chipmakers.
- Memory price hikes driven by high HBM demand complicate market dynamics.
- Phison anticipates NAND flash price spikes amid supply shortages.
- Renesas delays growth targets, retreating from SiC chip market.
- Huawei struggles with 5nm chip development, falling behind competitors.
- Apple set to launch OLED iPads, boosting Samsung and LG displays.
Naura Takes Strategic Control of Kingsemi for Lithography Goals
China’s lithography market is undergoing significant changes as Naura Technology has recently acquired a controlling stake in Kingsemi, marking a decisive step in combating lithography bottlenecks. With a notable 17.88% stake, Naura is aiming to integrate its etching and deposition expertise with Kingsemi’s capabilities in spin coating and wafer bonding. This merger is particularly important for China as it seeks to enhance its domestic lithography tools in light of ongoing U.S. export restrictions, a move seen favorably by analysts despite Kingsemi’s first quarter loss of roughly CNY40.07 million (approximately $5.59 million). That’s right, an ambitious strategy indeed, as they aim to narrow the widening lithography gap.
ASML’s High-NA EUV Adoption Remains Stalled
In other industry news, ASML’s High-NA EUV systems have been slow to gain traction among major chip manufacturers, with only five units sold thus far. Companies like Intel, TSMC, and Samsung Electronics are holding back due to high costs and uncertain ROI, with Intel aiming for deployment by 2028 while the others continue to utilize Low-NA EUV tools. This slow uptake comes despite ASML’s substantial investment of €16 billion (about $18.72 billion) in its supply chain in 2024, hinting at a long-term forecast for robust demand of these advanced lithography systems, though the present pace is rather lackluster.
Memory Market Faces Challenges Amid Price Fluctuations
Meanwhile, the memory market is feeling the pinch from increased demand for HBM, resulting in a surge in DDR5 and VRAM prices. This unexpected shift has pushed DDR4 prices above those of DDR5, and VRAM prices have doubled from around $10 to nearly $20. Nvidia’s ambitious RTX 50 series has been shipping at just 80% of expected projections due to ongoing memory shortages, which are exacerbated by pending U.S. tariff decisions that could impact consumer electronics soon. As prices rise, the industry watches closely to see how this may affect future device costs, especially with many consumers now on edge about increased spending.
Phison Predicts Elevated NAND Prices Due to Supply Woes
Looking at other developments, Phison has issued a warning regarding impending increases in NAND flash prices due to substrate shortages projected for the second half of 2025. The company’s CEO, K.S. Pua, has indicated that prices could remain high, reflecting a 30% increase from March to May driven by robust enterprise SSD demand. As issues like this rise, Phison is advising clients to secure inventory before September to avoid facing potentially steep pricing challenges later in the year, hinting at supply chain vulnerabilities.
Renesas Shifts Focus Amid EV Market Decline
In the wake of a slump in the electric vehicle market, Renesas is scaling back from its SiC power chip initiatives and has revised its ambitious growth target down from 2030 to 2035. The company’s move follows an overestimation of demand from the EV sector and an influx of competitors from China, leading it to abandon its envisioned Takasaki plant expansion. With the cancellation of projects and reporting a significant loss of JPY250 billion ($1.73 billion), CEO Hidetoshi Shibata is now pivoting the company’s focus towards integrated solutions combining various chip types, making this quite a turnaround for Renesas.
Huawei Struggles with 5nm Technology Development
On a related note, Huawei continues to face hurdles in achieving its 5nm chip aspirations. The company’s latest Kirin X90 still relies on SMIC’s 7nm technology, contradicting earlier claims about 5nm advancements reported by state media. Industry insights from TechInsights reveal that SMIC’s techniques using DUV-based multi-patterning remain complicated and costly, with the anticipation of a legitimate 5nm rollout pushed back to at least 2026. This delay puts Huawei further behind competitors like Apple and AMD, who are moving boldly into the 3nm territory, making the landscape even more challenging for Huawei.
Apple Expands OLED Plans for iPad Pros
Lastly, Apple is set to revitalize its iPad lineup with new OLED models due to launch in late 2025. Both Samsung Display and LG Display have been selected to supply these panels, adding to their current clout in the display manufacturing scene. Despite a shortfall in panel shipments of 6.3 million compared to earlier forecasts of 9 million, Apple’s future plans include rolling out OLED technology to iPad mini and iPad Air by 2026 and 2027, respectively. BOE seems to be lagging in readiness for LTPO technology, although LG Display is investing significantly to ramp up their production, while LX Semicon is emerging as a strong competitor in the display driver ICs market, challenging Samsung’s dominance.
In summary, recent developments in China’s lithography sector with Naura and Kingsemi signify a major strategic move to overcome technological challenges. As the memory market deals with price surges and disruptions, the industry remains vigilant in response to fluctuating demands and supply constraints. With companies like Phison and Renesas recalibrating their strategies amid market uncertainties and Huawei facing significant hurdles, the tech landscape is set to evolve amidst these shifting dynamics. Apple’s aggressive push into OLED technology offers some promise, but many companies must navigate complex challenges to maintain their footing in a fast-changing environment.
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