Korean factories are under great pressure! Korean media: TSMC’s foray into memory may lead to the loss of AI chip supply business

The American technology media "The Information" revealed that TSMC is considering entering the advanced memory field at the request of Huida. In this regard, South Korea's "Seoul Economic Daily" pointed out on the 7th that if TSMC successfully produces memory, it means that one company can handle all businesses from GPU, memory manufacturing to packaging, etc., thereby allowing TSMC to control the entire supply chain without relying on external memory suppliers, which will pose a severe challenge to Samsung Electronics and SK Hynix.

"The Information" reported that TSMC has recently begun evaluating plans to manufacture 3D DRAM. Possible options include building a memory factory or acquiring existing facilities and converting them into manufacturing plants. TSMC has not yet made a decision on whether to invest, the amount of investment, and when it will be put into production.

The 3D DRAM technology that TSMC is evaluating stacks memory cells vertically to increase storage density. This structure is different from the high-bandwidth memory (HBM) technology that Samsung Electronics and SK Hynix specialize in, which stacks DRAM chips to increase data transfer speeds.

"Seoul Economic Daily" pointed out that independent production of memory will further strengthen TSMC's influence in the AI ​​chip supply chain. Huida's GPU is currently produced by TSMC, while its HBM is supplied by SK Hynix, Samsung and other companies. If TSMC succeeds in producing memory, one company may take over the business from GPU manufacturing to memory and advanced packaging, which will allow it to control the entire supply chain from GPU manufacturing to memory to advanced packaging.

The report said that in the medium and long term, this development may cause Korean memory factories to face competitive challenges. The chip industry has long been divided: Taiwan dominates foundry services, while South Korea dominates memory. TSMC has established overwhelming competitiveness in the foundry field, but has not yet directly entered memory production. In comparison, Samsung and SK Hynix have accumulated rich technology and mass production experience in DRAM and HBM.

If TSMC enters the memory field, existing customers will be able to obtain memory and foundry services from a single supplier, which may affect the bargaining power of Korean companies. TSMC's expansion of its customers from foundry and advanced packaging to memory will be another risk faced by the Korean factory.

However, the status of Korean manufacturers is unlikely to be shaken in the short term, because there are still some technical obstacles to be solved for vertically stacked memory units, and it may take several years to achieve stable yields and mass production systems. Samsung Electronics, SK Hynix and American Micron are also developing this technology, making it difficult for TSMC to quickly narrow the technology gap.