© franz schloegl dreamstime.com Business | June 26, 2013
Mobile devices to consume more DRAM than traditional PCs in 2015
For a generation now, the PC and DRAM industries have been tied together as tightly as the automotive and crude oil businesses.
However, in a telling sign of the arrival of the post-PC era, mobile platforms for cellphones as well as media- and PC-type tablets are on the verge of overtaking traditional desktops, notebooks and servers as the biggest consumer of DRAM. In 2015, the mobile devices will use $11.6 billion worth of dynamic random access memory (DRAM), according to a DRAM Dynamics Brief from information and analytics provider IHS (NYSE: IHS). Such a level compares to $9.9 billion for conventional PCs, as presented in the attached figure. In all, this will mark the first time ever that the mobile platforms have accounted for the majority of DRAM consumption—and the first time since the 1980s that traditional PCs haven’t led in the area. “The fortunes of the PC and DRAM industries have been intricately intertwined for 30 years now,” said Dale Ford, senior director at IHS. “DRAM makers have centered their technology, capacity and product strategies on the needs of their PC customers. At the same time, the performance of the DRAM business has been dependent on upturns and downturns in the PC market. But with the decline of the PC market and rise of wireless platforms, this alignment is coming to an end.” The demise of the PC industry’s hegemony in the DRAM market reflects a broader trend throughout the electronics business, spurred by the arrival of the post-PC era. “The post-PC era is already a reality in the electronics supply chain,” Ford noted. “This new era doesn’t mean that consumers and companies will stop buying and using traditional personal computers. What this does mean is that PCs are not at the center of the technology universe anymore. PCs are no longer driving the action in the global electronics supply chain—a development that has tremendous implications for the future of the high-tech industry.” Similar trends to the DRAM market are occurring in other areas, with traditional PCs seeing their dominance over demand and technology development erode in the storage, display, software and overall semiconductor markets. IHS in 2012 noted that the share of traditional PCs in DRAM revenue fell to less than 50 percent for the first time in at least 30 years, marking a major milestone for the industry. While the share of PCs in DRAM consumption fell to 41 percent in 2012—far below the 85 to 65 percent share seen throughout the 1980s, 1990s and 2000s—PCs remained the largest single DRAM market. However, the newest findings from IHS show that PCs will lose that distinction in 2015. Furthermore, their share of total DRAM sales will fall to 30 percent in 2014, to 28 percent in 2015 and 23 percent in 2016, down from 38 percent in 2013. By 2017, traditional PCs will account for only 22 percent of DRAM consumption. A small silver lining The news is not all bad for PCs, because a significant portion of the mobile market in the coming years will consist of PC-type tablets. These tablets are touch-enabled devices that have a tablet form factor but run a PC-type operating system—specifically Windows from Microsoft Corp. However, even here there are some downsides for PC makers. For one, shipments of PC tablets will be considerably smaller than those of media tablets, at least through 2017. Furthermore, buyers of PC tablets will use them to replace traditional clamshell-type notebooks, not media tablets. This means that PC tablets will not help PC makers reclaim market share lost to media tablets. DRAM industry repercussions With the major consolidation in the DRAM industry, the small number of surviving suppliers of the memory now may be better equipped to deal with the rising importance of mobile platforms than they were before. “Mobile DRAM is more difficult to get right than the commodity DRAM used in PCs,” said Mike Howard, senior principal analyst for DRAM and memory at IHS. “Large companies with extensive R&D resources to develop multiple products tend to do better in the mobile DRAM market. It’s no surprise that semiconductor giant Samsung controls nearly 60 percent of the mobile DRAM market.”
ASML ships first-generation multibeam inspection system ‘eScan1000’ ASML Holding NV says that it has completed system integration and testing of its first-generation HMI multibeam inspection (MBI) system for 5 nm nodes and beyond.
Cognex takes measures to counter deteriorating market conditions Machine vision technology provider, Cognex Corporation, says it is taking significant steps to reducing expenses due to deteriorating market conditions and to position the company for growth when conditions improve.
Verkotan selects PWC technology from Rohde & Schwarz Test and measurement specialist Rohde & Schwarz has recently introduced the R&S PWC200, the first plane wave converter (PWC) on the market. Verkotan is the first independent test house to choose this technology to test 5G NR FR1 base stations over-the-air (OTA).
Kurt Sievers takes the helm at NXP At its annual general meeting of shareholders, the appointment of Kurt Sievers as the company’s next CEO was overwhelmingly approved.
Excelitas’ Qioptiq subsidiary expands with new plant Excelitas Technologies, a company delivering photonic solutions, sats that its Qioptiq subsidiary held a ground-breaking ceremony last week to mark the beginning of construction for a new factory in Göttingen, Germany.
Farnell adds Sorensen power supplies to its roster Distributor Farnell announces that it has added Sorensen, the premier DC programmable power supply brand from Ametek, to its range of power supplies.
Infineon raises EUR 1 billion following successful share placement Infineon informs that the company placed 55 million new shares, following an accelerated bookbuilding process with institutional investors, under the exclusion of subscription rights. The shares were placed at a price of EUR19.30 per share, meaning that the company managed to raise EUR 1.06 billion.
Skeleton Technologies strengthens management with new COO Skeleton Technologies has appointed Ants Vill, former Vice President of Product, as Chief Operating Officer.
SiPearl chooses Germany for its first international operational subsidiary SiPearl, a designer of the microprocessor for the European exascale supercomputer, is opening its first international subsidiary in Duisburg, in the Ruhr region, Germany, in order to build closer connections with its German partners and future clients.
DELO reports increased revenues despite current pandemic DELO closed the financial year that ended on March 31 with a turnover of EUR 163 million. This is an increase of almost 5% compared to the previous year (EUR 156 million).
China falls far short of its "Made-in-China 2025" goal IC production in China represented 15.7% of its $125 billion IC market in 2019, up only slightly from 15.1% five years earlier in 2014. IC Insights forecasts that this share will increase by 5.0 percentage points to 20.7% in 2024 (one percentage point per year on average).
COVID-19 highlights the gravity of the secondary market for SME Cha Jin-Seok, Chief Financial Officer of SK Hynix, said it best in the company’s Q1 earnings call, “Because of a never experienced pandemic, even basic business activities such as maintaining normal operations and predicting future demand have become challenging tasks.”
GlobalFoundries to implement ITAR at US manufacturing facility GlobalFoundries plans to implement export control security measures at its most advanced manufacturing facility, Fab 8, in Malta, New York.
Rebound Electronics expands in Asia The independent supplier of electronic components says it is investing to increase its market coverage in Asia with the opening of several new offices and setting up a customer service & telesales centre.
Samsung expands foundry capacity with new production line Samsung Electronics says that it plans to boost its foundry capacity at the company's new production line in Pyeongtaek, Korea, to meet growing global demand for extreme ultraviolet (EUV) solutions.
Super Dry Totech expands Long Term Storage Solutions offering The most recent development for Super Dry Totech, is the acquisition of a new building to expand on capacity & to minimise risk by assuring continuity should a disrupting incident occur in one of the facilities.
Ynvisible acquires electrochromic display company rdot Printed electronics specialist, Ynvisible Interactive, announces that it will acquire the printed electrochromic displays business of rdot AB of Gothenburg, Sweden.Load more news
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- COVID-19 highlights the gravity of the secondary market for SME
- China falls far short of its "Made-in-China 2025" goal
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- GlobalFoundries to implement ITAR at US manufacturing facility