China’s GPU company Lisuan Technology, based in Shanghai, has averted the crisis of bankruptcy, as it secures around 328 million yuan (nearly USD 46 billion) in financing from domestic NAND/ DRAM manufacturer Dosilicon and others, according to a report by Chinese media outlet Sina.

On August 20^th, Dosilicon made an announcement, stating that it plans to invest 200 million yuan of its own funds to increase the stake in Lisuan Tech. By subscribing to an additional 5 million yuan of Lisuan’s newly registered capital, the memory company will hold approximately 37.88% of Lisuan’s equity.

On the other hand, the report notes that other investors plan to inject a total of 128 million yuan to Lisuan, subscribing to a total of 3.2 million yuan in its newly added registered capital. In total, Lisuan Tech has received 328 million yuan in financing from Dosilicon and others.

Regarding the reasons behind the investment, the report indicates that there is a certain level of synergy between Dosilicon and its target company, Lisuan Tech. As Dosilicon has already established a portfolio of both standard and niche DRAM products, its R&D team can further engage in technical collaboration with the graphics rendering chip design team at Lisuan to enhance the design capabilities of both parties.

The report, citing public information, states that Lisuan Tech, with 20 years of experience in GPU development and design, is one of the few domestic companies in China capable of providing customized high-performance GPU solutions.

The firm’s first 6nm GPU, based on its self-developed ‘Pangu’ architecture, is ready for tape-out, the report suggests. The product even boasts to offer performance on par with NVIDIA’s high-end graphics cards.

However, due to delays in securing financing, the company has fallen into difficulties, with rumors circulating that it was facing bankruptcy.

According to the data cited by the report, in 2023, Lisuan had no revenue and a net loss of 145 million yuan. In the first half of 2024, it reported no revenue and a net loss of 97.9 million yuan. The bulk of the losses was said to stem from R&D investments.

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(Photo credit: Lisuan Tech)

According to the reports from EETimes China and Blocks &Files, Western Digital (WD) is said to be considering spinning off its NAND and SSD business, which could be valued similarly to Solidigm.

Reportedly, WD plans to split into two separate business units: one focused on producing hard disk drives (HDDs) and the other on NAND flash memory and SSDs. This strategy is expected to enhance operational efficiency within each unit, allowing them to concentrate on their core strengths and ultimately achieve greater market value.

According to the report, WD CEO David Goeckeler will lead the NAND and SSD unit, while Executive Vice President of Global Operations Irving Tan will take on the role of CEO for the HDD business

Citing calculations by an analyst, the report notes that  the standalone value of WD’s NAND and SSD business could range from USD 10 billion to 22 billion. This suggests that spinning off these businesses could lead to a higher market valuation for the company.

The report states that the market has not yet fully recognized the value of WD’s NAND business, and that the combined independent value of the two companies post-split will be at least USD 30 billion, with the potential to exceed USD 40 billion.

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(Photo credit: Western Digital)

According to TrendForce’s latest memory spot price trend report, regarding DRAM spot prices, though the top three DRAM suppliers have not lowered their official prices, spot prices could weaken further because buyers are more passive than before. On the other hand, the ample supply of reball DDR4 chips have also depressed the momentum for DDR4’s price hike. As for NAND flash, spot traders are depleting in anticipation on a revitalization of demand for 3Q24 having perceived the sluggishness from the contract market. Details are as follows:

DRAM Spot Price:

Continuing from last week, there has been no noticeable demand rebound in the spot market. Although the top three DRAM suppliers have not lowered their official prices, spot prices could weaken further because spot buyers are more passive than before, and the demand situation for consumer electronics has yet to experience a turnaround. It is worth noting that spot prices of DDR4 products have been rising by a smaller margin compared with spot prices of DDR5 products since the start of this year. Consequently, some module houses are showing willingness to restock DDR4 products. However, there is still ample supply of reball DDR4 chips, so spot prices of DDR4 products reveal no indication of hikes. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) dropped by 0.35% from US$1.985 last week to US$1.978 this week.

NAND Flash Spot Price:

Spot traders are depleting in anticipation on a revitalization of demand for 3Q24 having perceived the sluggishness from the contract market. Wafer prices have dropped compared to last week, which reflect how traders are hoping to minimize their losses from inventory by attempting to finalize transactions as soon as possible amidst pessimism. Spot prices of 512Gb TLC wafers have dropped by 1.15% this week, arriving at US$3.234.

According to TrendForce’s latest memory spot price trend report, regarding DRAM spot prices, demand has yet to show improvement, leading to increased inventory pressure on suppliers, which indicates the potential for larger price drops in the future. As for NAND flash, the overall price trend is still shifting to a reduction, which led to a small drop in prices for packaged dies and wafers from the spot market. Details are as follows:

DRAM Spot Price:

Continuing from last week, demand has yet to show improvement, leading to increased inventory pressure on suppliers. Consequently, suppliers are more willing to offer price concessions in the spot market. Overall, spot transactions continue to show low volumes. Additionally, the prices that buyers are willing to accept are significantly lower than the official prices set by sellers, resulting in a stalemate. Therefore, there is a potential for larger price drops in the future. The average spot price of mainstream chips (i.e., 1Gx8 2666MT/s) fell by 0.20% from US$1.989 last week to US$1.985 this week.

NAND Flash Spot Price:

Sluggishness persists among spot market transactions after the opening in August, where buyers are maintaining their strong on-the-fence sentiment. Despite emergence of demand for partial stocking orders, the overall price trend is still shifting to a reduction due to a lack of continuity, which led to a small drop in prices for packaged dies and wafers from the spot market this week, where 512Gb TLC wafer has fallen by 0.58% in spot prices, now arriving at US$3.272.

Japanese semiconductor equipment maker Tokyo Electron (TEL) has raised its profit forecast for the fiscal year 2024 (ending March 2025), expecting an operating profit of JPY 627 billion (approximately USD 4.3 billion), an 8% increase from its previous guidance.

Tokyo Electron contributed the strong growth trend compared to the previous fiscal year, driven by China’s significant investment in mature semiconductor nodes. The company has also raised its sales and profit outlook for the period from April to September.

For the quarter ending in June, Tokyo Electron reported revenue of JPY 555 billion, reversing a declining trend seen since 2022. Operating profit for these three months was JPY 165.7 billion.

Source: TEL

The past year, to Tokyo Electron, has been in turbulence year, as initial optimism from AI demand and the semiconductor manufacturing industry was tempered by U.S. export restrictions.

Regarding the matter, Hiroshi Kawamoto, finance division officer of Tokyo Electron, stated in a conference call that there are currently no signs of the U.S. implementing stricter restrictions on chip-making tools, while the company will continue to closely monitor the situation.

As of the quarter ending in March, over 47% of its revenue came from China due to increased equipment stockpiling in anticipation of potential U.S. sanctions. In the recent quarter, nearly 50% of revenue was generated from the Chinese market.

Source: TEL

Looking ahead to the next fiscal year (FY2025), Tokyo Electron expects double-digit growth, driven by strong demand for AI servers and an increase in AI-enabled PCs and smartphones.

This resurgence in demand is anticipated to boost the market. The company expects further expansion in DRAM production and a recovery in NAND investment due to inventory adjustments. However, investment in advanced logic and foundry services is expected to offset the slowdown in mature process technologies.