HSBC identifies Asian semiconductor markets as key AI growth drivers

HSBC strategists suggest that the artificial intelligence boom is entering a new phase, potentially shifting investor focus from major US tech companies toward Asian markets. The bank identifies three key areas for growth: South Korean memory producers, Taiwanese semiconductor manufacturers like TSMC, and Chinese companies developing domestic AI infrastructure and integrated circuits.

However, technical challenges persist in the high-performance memory sector. Reports indicate that China's CXMT is facing significant production hurdles with 8-layer HBM3 memory. While South Korean manufacturer SK hynix has achieved yields exceeding 90% since 2022, CXMT's trial production yields are estimated at only 25-30%. After rigorous quality control, nearly 80% of tested units reportedly fail.

The primary difficulty lies in the complex packaging required for High Bandwidth Memory (HBM), specifically regarding Through-Silicon Via (TSV) connections and layer positioning. While CXMT uses a simplified design with approximately 3,000 TSVs compared to over 8,000 in SK hynix products, the company still struggles with silicon deformation and layer alignment. Despite these setbacks, small batches of memory are reaching Chinese firms such as Huawei, Cambricon, and Alibaba's T-Head.