Samsung’s planned launch of its budget model version for the upcoming Galaxy Z Fold 6 foldable phone may be cancelled, according to information obtained by South Korea’s media outlet TheElec.

According to sources cited by TheElec, component suppliers to Samsung, which were gearing up for mass production of parts for these foldable devices, indicated that they have not received orders for the budget model Fold 6.

Initially, the South Korean tech giant had planned to unveil three foldable phones this summer: the Galaxy Z Fold 6, the Galaxy Z Flip 6, and an affordable version of the Fold 6.

The Fold 6 features a digitizer layer on the screen to support the S-Pen stylus, but the budget model was intended to be thinner and omit this feature.

It is reported that Samsung, after conducting a durability test of 200,000 folds for the budget model, with water and dust resistance functions added, has founded out that the product turned out not to be thinner than its Chinese rival Huawei’s equivalent, thus lacking significant differentiating points from these rival products.

Huawei’s Mate X3 and X5, launched last year, were both around 11.08mm thick, according to information obtained on Huawei’s website. Samsung’s Galaxy Z Fold 5 was 13.4mm thick, while Xiaomi’s Mix Fold 3 was 10.9mm thick.

According to analysis from TrendForce, global shipments of foldable phones reached 15.9 million units in 2023, marking a 25% YoY increase and accounting for approximately 1.4% of the overall smartphone market. In 2024, shipments are expected to rise to about 17.7 million units, growing by 11% and slightly increasing the market share to 1.5%. However, this growth rate remains below market expectations, with the segment’s share predicted to exceed 2% only by 2025.

Trendforce points out that the slowdown in the growth of foldable phones could be attributed to two main factors: Firstly, consumer retention is low due to frequent maintenance issues faced by first-time foldable phone users, leading to a lack of confidence in the product. As a result, users may opt for high-end flagship smartphones when considering replacements. Secondly, the current price points of foldable phones have yet to reach the sweet spot for consumers, making it challenging to meet sales targets based solely on pricing.

(Photo credit: Samsung)

SK Hynix has updated its latest timeline regarding HBM4E, the company’s 7th generation high bandwidth memory, on Monday. According to reports from Wccftech and TheElec, the memory heavyweight’s generation changes of two-year gap has been shortened to one, and is now on track to launch HBM4E by 2026.

The news was revealed by Kim Gwi-wook, head of SK Hynix’s HBM advanced technology, during the International Memory Week 2024 held in Seoul yesterday. Earlier in February, Chun-hwan Kim, Vice President of SK Hynix, stated that the company plans to commence large-scale production of HBM4, their sixth generation of the HBM family, in 2026, as well.

According to TheElec, HBM4E will be the first chip from SK Hynix to be made through its 10-nanometer (nm) class Gen 6 (1c) DRAM. It is reportedly to be made of 32Gb DRAM and use 1c DRAM as the core die.

According to Wccftech, HBM4E’s feature bandwidth is said to be 1.4 times higher than that of its predecessor, HBM4. This indicates a significant enhancement in power efficiency, providing a preview of the advancements we can anticipate in next-gen AI accelerators.

Earlier in April, SK Hynix announced it has recently signed a memorandum of understanding with TSMC for collaboration to produce next-generation HBM and enhance logic and HBM integration through advanced packaging technology. The company plans to proceed with the development of HBM4, or the sixth generation of the HBM family, slated to be mass produced from 2026, through this initiative.

Samsung, SK Hynix’s major competitor on memory, also schedules to start mass production of HBM4 in 2026.

(Photo credit: SK Hynix)

TrendForce’s latest findings revealed that as of 2024, Taiwan is expected to lead the global semiconductor foundry capacity in advanced manufacturing processes (including 16/14nm and more advanced technologies) with a 66% market share, followed by Korea (11%), US (10%), and China (9%). However, the semiconductor production capacities of advanced nodes in Taiwan and Korea are projected to decrease to 55% and 8%, respectively, by 2027.

It is worth noting that though semiconductor heavyweights including TSMC, SK Hynix and Samsung keep raising the amount of investments,  Taiwan and Korea, as the two countries holding the highest market share in advanced nodes, are expected to fall in their market shares.

On the other hand, in the US, where the government has been pushing incentives and subsidies more aggressively, its global capacity share in advanced manufacturing processes is expected to jump from 10% in 2024 to 22% in 2027.

Per the overall foundry capacity, Taiwan is expected to hold approximately 44% of global market share as of 2024, followed by China (28%), South Korea (12%), the US (6%), and Japan (2%). The overall trend is expected to be in line with advanced nodes. In contrast, the overall semiconductor production capacities of Taiwan and South Korea are projected to decrease to 40% and 10%, respectively, by 2027.

China, where foundries focus more on expanding mature process capacities and are backed by government subsidies, is projected to perform relatively strong in the overall global market share, growing from 28% in 2024 to 31% in 2027. Its market share of the matured process (including ≥28nm nodes) capacity is expected to rise from 33% in 2024 to 45% in 2027.

According to a report from THE CHOSUN Daily on May 10th, citing forecast from The Semiconductor Industry Association (SIA) and The Boston Consulting Group (BCG), in 2022, Taiwan and Korea held 69% and 31% shares of the production of the most advanced semiconductors below 10 nanometers, while their market share on the advanced nodes may fall to 47% and 9% in 2032, respectively.

The report as mentioned earlier stated that the dramatic decline in South Korea’s semiconductor production share is primarily attributed to key players like Samsung Electronics and SK Hynix, who currently dominate the global advanced semiconductor market alongside TSMC. However, instead of investing in South Korea, they have opted to establish their latest factories in the United States.

The US government announced earlier in April that it would provide up to USD 6.4 billion in subsidies to Samsung for expanding advanced chip production capacity at its Texas plant. In addition, SK Hynix plans to spend $3.87 billion building an advanced packaging plant and research center for artificial intelligence products in Indiana.

(Photo credit: Samsung)

SoftBank Group’s global IP leader, Arm, has reportedly announced the establishment of an AI chip division with the goal of developing AI chip prototypes by spring 2025. According to a report from DRAMeXchange, mass production will be handled by contract manufacturers, with initial production slated to begin in autumn 2025.

Arm will cover the initial development costs estimated to reach several trillion yen, funded by SoftBank Group. Once a large-scale production system is built, Arm’s AI chip business may be spun off and incorporated into a SoftBank Group division, which is because SoftBank holds a total of 90% of Arm’s shares and has been in talks with TSMC to secure production capacity.

Arm is a significant player in the global semiconductor industry, renowned for its energy-efficient Arm architecture, which commands over 90% of the global market share in smartphone chip field. SoftBank acquired Arm in 2016 for USD 32 billion, empowering Arm to go public on the US stock exchange in September 2023.

Last week, Arm reported fiscal 2024 fourth quarter revenue of USD 928 million (+47% YoY) and adjusted operating profit of USD 391 million. It forecasts first-quarter revenue for fiscal year 2025 to be USD 875-925 million, expecting annual revenue to be USD 3.8-4.1 billion.

According to Canada’s Precedence Research, the current market size for AI chips is USD 30 billion, expected to exceed USD 100 billion by 2029 and USD 200 billion by 2032. Despite NVIDIA’s dominant position in AI chip technology, it is unable to meet the growing demand.

Eyeing on the opportunities presented by the AI wave, SoftBank Group founder Masayoshi Son has identified AI as a key focus area for development and is seeking to raise USD 100 billion to found an AI chip company to compete with NVIDIA.

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• [News] SoftBank Founder Masayoshi Son Plans to Raise USD 100 Billion to Establish AI Chip Company

(Photo credit: SoftBank News)

Industry sources cited by a report from Economic Daily News have indicated that Apple is accelerating the development of its foldable device, moving up the expected launch from 2026 to 2025. Apple has reportedly placed orders for flexible panels from Samsung, with plans for the foldable device to debut with the iPad before expanding to the iPhone.

Moreover, the smartphone market leader is said to have already secured a supply of flexible panels from Samsung in the first half of this year, hinting at its determination to enter the foldable market.

Hinges are expected to be the most crucial and newly added component for Apple’s foldable device, experiencing a surge in demand. Shin Zu Shing, Taiwanese supplier for foldable smartphone hinges, having cooperated with Apple in the field for many years, stands to benefit greatly.

In addition,  other Taiwanese Apple supply chain partners, including Foxconn, Largan Precision, and Pegatron, are anticipated to benefit similarly as with existing iPad and iPhone production. The aforementioned Apple suppliers typically refrain from commenting on individual customer and order dynamics.

A report from SamMobile also indicated that, Apple may have signed a contract with Samsung Display (SDC) for the supply of foldable displays. It is estimated in the same report that limited supplies will begin in 2025, ramping up to mass production in 2026. By 2027, the supply is expected to reach 65 million units, increasing to 100 million units in 2028.

Additionally, the ordered display sizes are larger than those of existing iPhones, indicating that the display components procured by Apple from Samsung will be used in new foldable device products.

Industry sources cited in the report from Economic Daily News believe that Apple’s first foldable device will be unveiled by the end of 2025 or early 2026, targeting the ultra-high-end market segment. It is expected to come in two sizes: 7.9 inches and 8.3 inches, competing against foldable devices from Samsung and Huawei.

According to the analysis released by TrendForce in the second half of last year, Apple’s development in the folding field still requires time. Apple’s foray into foldables has been tepid, to say the least.

TrendForce reports that global shipments of foldable phones reached 15.9 million units in 2023, marking a 25% YoY increase and accounting for approximately 1.4% of the overall smartphone market. In 2024, shipments are expected to rise to about 17.7 million units, growing by 11% and slightly increasing the market share to 1.5%. However, this growth rate remains below market expectations, with the segment’s share predicted to exceed 2% only by 2025.

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• [News] Apple Reportedly Joins the Foldable Phone Market, Setting Stage for Three-Way Competition

(Photo credit: Apple)