MARCHASIA BUSINESS OUTLOOK9Samsung Electronics is planning to adopt a chip making technology promoted by its rival SK Hynix in a bid to catch up in the competition to produce high-end chips essential for powering artificial intelligence, according to five sources familiar with the matter.The demand for high bandwidth memory (HBM) chips has surged alongside the increasing popularity of generative AI. However, Samsung, unlike competitors SK Hynix and Micron Technology, has not engaged in any deals with AI chip leader Nvidia to supply the latest HBM chips.One of the factors contributing to Samsung's lag behind its rivals is its adherence to chip making technology known as non-conductive film (NCF), which has encountered production challenges. In contrast, Hynix has transitioned to the mass reflow molded underfill (MR-MUF) method to address the weaknesses of NCF, as noted by analysts and industry observers.Recently, Samsung has placed orders for chipmaking equipment capable of handling the MUF technique, according to three sources directly involved."Samsung needed to improve its HBM production yields... adopting the MUF technique represents a concession for Samsung, as it follows the approach initially adopted by SK Hynix," one source commented. While Samsung's HBM3 chip production yields currently range from 10-20 percent, SK Hynix has achieved yield rates of approximately 60-70 percent for its HBM3 production, as stated by several analysts.The latest versions of HBM chips, HBM3 and HBM3E, are in high demand, particularly for their integration with core microprocessor chips to handle large volumes of data in generative AI applications. Samsung is also in discussions with material manufacturers, including Japan's Nagase, to procure MUF materials. However, mass production of high-end chips using MUF is unlikely to commence until next year at the earliest, as Samsung needs to conduct further testing. The dollar remained relatively stable on Tuesday, awaiting crucial U.S. inflation data later in the day. Meanwhile, the yen strengthened near a one-month high amid growing expectations that the Bank of Japan (BOJ) could exit negative interest rates soon. In the cryptocurrency space, bitcoin hovered above $72,000, close to breaking the previous day's record high.The euro retreated from a roughly two-month high against the dollar, last trading at $1.0931. Sterling rose slightly to $1.2822, but it was still some distance away from Friday's more than seven-month peak. Currency movements were restrained, and the dollar paused its recent decline ahead of the U.S. inflation reading, providing further insight into when the Federal Reserve might begin its expected rate easing cycle this year.Analysts anticipate core consumer prices to have risen 0.3 percent on a monthly basis in February. Investors will closely monitor any upward surprises, similar to January, which could affect the anticipated pace of Fed rate cuts. The Australian dollar edged up slightly to $0.6615, while the New Zealand dollar dipped to $0.61685. The dollar index was stable at 102.80, having touched a roughly two-month low of 102.33 last week.The greenback's decline has been driven by increasing expectations that the Fed might start cutting rates by June. This sentiment solidified after comments from Fed Chair Jerome Powell last week and Friday's jobs data indicating softening underlying labor market conditions in the U.S.Speculation about the BOJ potentially moving away from ultra-easy policy settings at its upcoming policy meeting supported the yen in Asia. Against the dollar, the yen steadied at 146.94, not far from the previous day's one-month high of 146.48. The BOJ's refraining from purchasing Japanese exchange-traded funds on Monday, despite a significant drop in domestic shares, further fueled expectations of a policy shift. Japan has maintained negative short-term interest rates and a massive stimulus program to stimulate its economy for years.SAMSUNG TO ADOPT CHIP MAKING TECHNOLOGY UTILIZED BY COMPETITORSJPY ON THE RISE AS USD REMAINS RELATIVELY STABLENEWSROOM
< Page 8 | Page 10 >