Following the US’s recent expansion of chip control measures targeting China on October 17th, the American chip maker, Advanced Micro Devices (AMD) is reportedly planning workforce reductions of approximately 10% to 15% at its Shanghai research center. Additionally, there are rumors of impending layoffs in the Chinese subsidiary of Synopsys, a leading Electronic Design Automation (EDA) giant from the US.

As reported by the tech media ICsmart, recent leaks on a Chinese social community have hinted at AMD’s workforce cuts in China, which are expected to affect around 10% to 15% of their employees, encompassing roughly 300 to 450 individuals. Notably, the Radeon Technologies Group (RTG) department is anticipated to be significantly affected.

Insiders within AMD revealed that on October 25th, all meeting rooms at the Shanghai research center were pre-booked by the Human Resources department, strongly suggesting that layoffs are on the horizon.

Established in 2006, AMD’s Shanghai research center stands as their largest facility outside of the United States, employing around 3,000 professionals. The center plays a crucial role in designing, developing, and testing products like Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Accelerated Processing Units (APUs). It has been instrumental in introducing innovative products to AMD’s portfolio, such as the Ryzen series processors and Radeon series graphics cards. The RTG department at AMD is responsible for advancing Radeon series graphics card technologies.

AMD’s financial report for the second quarter of this year reveals a total revenue of $5.4 billion, a decline of 18% compared to the previous year. Significantly, the net profit was only $27 million, marking a substantial 94% drop from the same period last year.

China represents AMD’s most substantial overseas market, with sales reaching $5.27 billion in 2022, contributing to 22% of their total revenue.

Reports indicate that the US introduced new bans on Chinese chips on October 7th last year, particularly affecting high-performance chips used for AI computations. On October 17th, the US further tightened these restrictions, leading to the inclusion of more NVIDIA and AMD GPU products, directly impacting AMD’s research and development efforts in mainland China. Given this context, news of AMD layoffs in China doesn’t come as a surprise.

The report also suggests that, while this isn’t something China welcomes, from another perspective, these layoffs might channel more talent towards local GPU manufacturers. Many key figures in Chinese GPU startups have their roots in AMD.

Furthermore, there are rumors that Synopsys recently convened an all-hands meeting, indicating the possibility of impending layoffs.

As a global leader EDA, Synopsys established its presence in China back in 1995 and has since established offices in various cities. The company boasts a workforce of over 1,500 people and has a robust system for technical research and talent development.

The report mentions that the impact of the US restrictions on Synopsys mainly stems from its inability to supply to Chinese chip design companies already included on the US Entity List, such as Huawei’s Hisilicon. While it has negatively impacted its business, the growing trend of Chinese firms pursuing self-developed chip production mitigates the overall impact.

(Image: AMD)

Source to UDN, the DRAM market has been buzzing with positive developments lately, and may get a chance to see an upturn by the end of the year. Among the key factors driving this optimism is the DDR5 specification DRAM, which is poised to capitalize on opportunities in AI servers and laptops next year, gradually increasing demand.

After more than a year of corrections, the DRAM market is finally showing signs of improvement. Major DRAM manufacturers like Samsung and SK Hynix are still reducing production capacity, but their focus is primarily on DDR4 specification DRAM. Industry sources suggest that Samsung, in response to the growing demand for DDR5 DRAM, is set to significantly ramp up DDR5 production in the fourth quarter of this year, anticipating strong order demand next year.

In fact, such as Intel and AMD are planning to introduce new platforms next year that will support DDR5 specification DRAM, indicating a gradual decline in DDR4 demand. Beyond the consumer market, the server market is expected to experience a substantial surge in DDR5 demand, driven by the imminent launch of Intel’s fifth-generation server platform, Emerald Rapids, which fully supports DDR5. As AI server demand gains momentum, DDR5 demand is poised to enter a high-growth phase.

(Source: https://money.udn.com/money/story/5612/7488629 ; Image credit: Micron)

According to Taiwan’s Money DJ, the AI wave is showing no signs of slowing down. Led by NVIDIA, major players including AMD, Intel, and international chip giants are aggressively entering the AI arena, driving increasing demand for advanced packaging and advanced processes. Industry reports suggest that TSMC is reallocating several thousand personnel from its Hsinchu 12B plant to support its Longtan and Tainan 18B facilities in a bid to address the current urgent demands.

TSMC typically follows a process of initial research and development (R&D) stages for advancing its processes before handing them over to the mini-line teams and then proceeding to full-scale production. As a result, the 2nm process is slated for trial production in the second quarter of 2024, leaving a gap of approximately six months. It is rumored that TSMC is mobilizing staff from its Hsinchu 12B plant to provide support for the CoWoS-focused Longtan facility and the Tainan 18B plant, which is responsible for mass-producing the 3nm process, to address the immediate needs.

Equipment suppliers estimate that TSMC’s CoWoS production capacity is set to reach 12,000 to 14,000 wafers per month by the end of this year, with a projected doubling of production by 2024. By the end of that year, it is expected to reach at least 26,000 wafers per month, potentially even surpassing 30,000 wafers. Meanwhile, for the 3nm family, in addition to Apple and MediaTek, AMD, NVIDIA, Qualcomm, and even Intel are confirmed to adopt the N3 family of processes.

(Photo credit: TSMC)

According to a report by Taiwan’s Money DJ, there’s good news from TSMC regarding its 3nm node. Sources within the supply chain have disclosed that the number of new chip designs using the 3nm process, known as “New Tape-Outs” (NTOs), has surged. It’s confirmed that customers including MediaTek, AMD, NVIDIA, and Qualcomm will follow in Apple’s footsteps for mass adoption of the 3nm process in the next year (2024) and the subsequent year. By the second half of next year, the monthly production capacity for the 3nm family, including N3E, will increase from the current approximately 60,000 wafers to 100,000 wafers.

According to publicly available information from TSMC, the company began volume production of its first 3nm process node, N3, in the second half of last year. The enhanced version of the 3nm process, N3E, started production in the latter half of this year. There will also be extensions to the 3nm process, including N3P, N3S, and N3X. This year, Apple’s high-end A17 Pro chip for its iPhones was based on the initial N3 process.

Both TSMC and MediaTek previously announced their collaboration, with MediaTek developing new Dimensity products using TSMC’s 3nm process. The design phase, known as “Tape Out,” has been successfully completed, and mass production is scheduled for next year. Industry reports indicate that aside from Apple and MediaTek, AMD, NVIDIA, and Qualcomm are also confirmed to adopt the N3 family of processes. Intel is also on the list, with mass production planned for the year after next.

TSMC’s first-generation 3nm process currently has a monthly production capacity of about 60,000 wafers, serving Apple as its primary customer. TSMC has initiated a program known as “Continuous Improvement Plan” (CIP) for the 3nm process, referred to as N3B in the industry. Supply chain sources suggest that N3B’s capacity will be integrated into subsequent extended process nodes, such as N3E, which is expected to attract more customers. It is estimated that the overall 3nm monthly production capacity will reach 100,000 wafers by the second half of next year.

(Photo credit: TSMC)

According to a report by Taiwan’s Economic Daily, TSMC’s CoWoS advanced packaging capacity is running at full throttle. As they actively expand their production capabilities, there are reports of major customers like NVIDIA increasing their orders for AI chips. Additionally, industry giants like AMD and Amazon have rushed in with urgent orders.

In response to this urgent situation, TSMC is actively seeking equipment suppliers to expand its CoWoS machine procurement. Beyond TSMC’s existing production expansion goals, the company is further increasing its orders for equipment by an additional 30%, highlighting the ongoing fervor in the AI market.

It is reported that TSMC has sought assistance from equipment manufacturers such as Scientech, Allring, Grand Process Technology, E&R Engineering, and GP Group for this endeavor. They plan to complete the delivery and installation of the equipment by the first half of the coming year. The related equipment manufacturers are experiencing a surge in activity.

Industry sources reveal that TSMC’s CoWoS advanced packaging monthly production capacity is currently around 12,000 units. With their previous expansion efforts, they aimed to gradually increase this to 15,000 to 20,000 units per month. Now, with the addition of more equipment, they are looking at the possibility of reaching capacities of over 25,000 units per month, potentially even approaching 30,000 units. This substantial increase in production capacity positions TSMC to handle a significantly larger volume of AI-related orders.

Equipment providers have pointed out that NVIDIA is currently TSMC’s largest customer for CoWoS advanced packaging, accounting for 60% of the production capacity. Recently, in response to robust demand in AI computing, NVIDIA has increased its orders. Additionally, urgent orders from other customers such as AMD, Amazon, and Broadcom have started to pour in.

(Photo credit: TSMC)