Components | September 02, 2011
2HAug. NAND Flash contract price with stabilizing signs
Demand from certain system product clients is expected to gradually pick up in September, due to inventory replenishment in response to the unveiling of new products. Thus, most NAND flash contract price for 2HAug. has stayed flat.
However, memory card and UFD retail market demand remained weak, and 128Gb TLC contract ASP fell by 5%. Furthermore, as some suppliers have shifted a portion of production from 32Gb to 64Gb MLC, 32Gb MLC contract ASP increased by a slight 3% due to the decrease in supply.
TrendForce indicates that NAND flash market demand from some tablet PC and smart phone system clients’ OEM orders will be relatively strong in 4Q11. Thus, suppliers are making efforts to increase embedded product and SSD shipments to partially make up for the memory card and UFD retail market’s relatively weak demand.
Furthermore, major NAND flash suppliers are sticking with their original capex and bit output growth figures for 2011. Beginning in 3Q11, 2xnm node technology will gradually replace 32nm node technology as the mainstream process, and many suppliers will begin production on 2ynm products in 4Q11.
While a significant increase in bit supply and weaker-than-expected peak season effects have resulted in market oversupply in 2H11, price already fell significantly during this year’s weak season. Thus, in 4Q11 both system products’ built-in NAND flash storage capacity as well as NAND Flash content of memory cards and UFDs should be further boosted, in turn increasing bit consumption and helping to partially ease market oversupply.
If the recovery of the global economy and NAND flash end-application demand are weaker than expected in 1H12, resulting in severe price decreases, most NAND flash suppliers will adopt contingent alternatives to commence production cuts. For instance, adjusting utilization downward or transferring a portion of capacity to non-memory IC products, etc., in order to decrease market supply and ease the oversupply situation.
Recently, major countries have discussed collaborative solutions to improve short and mid-term issues such as slower economic growth, financial deficits, and higher unemployment rates, with alternatives for flexible mix of monetary or fiscal policies and measures, and the restructure plan of industrial development policy. In light of these efforts, it is generally believed that the global economy will gradually be back on the road to recovery after 3Q11.
Furthermore, the recent release of the ultrabook platform will bring new opportunities for the NAND flash market. In consideration of BOM cost and performance to price ratio, related manufacturers will begin introducing NAND flash cache (over 20GB) plus HDD combination ultrabooks beginning in 4Q11.
In 2H12, as 2ynm process technology matures, the market should see ultrabooks with hybrid HDD or pure SSD (over 128GB). Additionally, new smart phone and tablet PC products based on Android or Windows OS will be continually introduced starting in 4Q11, providing healthy competition for iOS-based portable devices. The new diversity of NAND flash products will hopefully bring a breath of fresh air to market demand in 1H12 and partly ease 1H weak season effects.
As for the short-term NAND flash price trend, 3Q11 inventory replenishment is weak compared to previous years. However, as downstream clients’ inventory levels decrease, replenishment should begin sometime in September and October in preparation for the Thanksgiving and Christmas peak sales season. NAND flash price will hopefully stabilize from the year-end demand inventory replenishment.
However, TrendForce states that current order visibility is not high for 4Q11, and the follow-up upward momentum of NAND flash price will still depend on actual market demand conditions during the year-end holiday sales season.
Renesas and Panthronics team up on wireless charging and IoT solutions
Renesas and Panthronics AG, a fabless semiconductor company specialising in high performance wireless products, are collaborating to bring solutions to the consumer, industrial, and Internet of Things (IoT) markets.
Murata completes new production facility in Malaysia
Murata Electronics (Malaysia) Sdn.Bhd. (Perak, Malaysia), a production subsidiary of Murata Manufacturing Co., Ltd., recently completed construction of a production facility that was started in October 2018.
AKKA is now a majority owner of Data Respons
Following the closing of the voluntary offer period, AKKA holds 72.89% of Data Respons’ share capital.
Sequans and Avnet sign global distribution deal
Sequans Communications S.A. and Avnet have entered into a distribution agreement whereby Avnet will promote and sell Sequans’ IoT chips and modules and will exclusively promote and sell Monarch Go, an LTE-M/NB-IoT modem component designed for and certified by Verizon.
Ad
Synopsys completes acquisition of certain IP assets from INVECAS
Synopsys, Inc. has completed its acquisition of certain IP assets from INVECAS. This acquisition broadens Synopsys' DesignWare Logic Library, Embedded Memory, General Purpose I/O, Analog, and Interface IP portfolio.
Qualcomm: Coronavirus may impact phone industry
Chip maker Qualcomm Inc has issued a statement that the coronavirus outbreak in China poses a potential threat to the mobile phone industry.
South Korean supplier to set up manufacturing in Hungary
Soulbrain, a South Korean materials company supplying chemicals used in semiconductors, displays and battery cells, is establishing its first European unit in Tatabánya in Hungary.
Seven major chip acquisitions valued at USD 1bn or more
Semiconductor merger and acquisition activity strengthened in 2019 after pulling back in the two previous years from historic high levels of M&A agreements in 2015 and 2016.
Jenoptik is expecting further growth in 2020
Despite difficult economic conditions, Jenoptik continued to grow in 2019.
ams reports record results for full year 2019
Austrian sensor manufacturer ams reports that its revenues for 2019 was up 32% year-on-year, and fourth quarter revenues exceeded expectations with strong adjusted operating profitability.
Xperi enters into a patent and technology license deal with SK hynix
Xperi Corporation has entered into a new patent and technology license agreement with semiconductor manufacturer SK hynix.
Communications equipment makers want high power outputs and small solution footprints
Many communications systems are powered via a 48 V backplane. This voltage is normally stepped down to a lower intermediate bus voltage, typically to either 12 V, 5 V, or even lower, in order to power the racks of boards within the system.
Pennsylvania’s AMETEK acquires IntelliPower
AMETEK Inc. has purchased IntelliPower, designer and manufacturer of high-reliability external battery packs and power conditioners and distribution units for defense and industrial applications.
Nuvia unveils first NA office, new leadership
Santa Clara-based silicon design start-up NUVIA Inc. has opened its first international office in Toronto, Ontario, Canada.
Murata completes new production building in Japan
One of Murata’s manufacturing subsidiaries – Fukui Murata Manufacturing Co., Ltd. – has completed the construction of a new production building in Echizen City on the Fukui Prefecture, Japan.
Synapse opens two offshore semiconductor design centres
Synapse Design has officially opened its newest semiconductor design centers: One in Ahmedabad, India and one in Penang, Malaysia. With the addition of these two design centers, the company now has eight offshore design centers (ODC).
Amtech receives order from power semiconductor customer in Asia
Amtech Systems says that its subsidiary, Bruce Technologies, Inc., has received a significant new order for its full 300mm clustered HTR diffusion furnace from a top-tier global power semiconductor customer in Asia. The furnace is expected to ship in fiscal Q1 2021.
Osram starts the year with a strong first quarter
After a challenging fiscal year 2019, Osram has made a robust start to fiscal 2020. On a comparable basis, revenue in the first quarter (ending December) grew slightly by 0.5% to EUR 873 million.
Presto acquires DELTA Microelectronics business from FORCE Technology
Presto Engineering, an outsourced operations provider to semiconductor and (IoT) device manufacturers, has acquired the DELTA Microelectronics business unit of FORCE Technology, the European provider of ASIC supply chain services.
Infineon: 'Our cost reduction measures are beginning to take effect'
In the first three months of the 2020 fiscal year, Infineon's revenue decreased by 7% from EUR 2,062 million to EUR 1,916 million quarter-on-quarter.
Lam Research to expand global footprint
Lam Research Corporation has selected Batu Kawan Industrial Park in Penang, Malaysia as the location for a new advanced technology production facility.
ON Semi looking to sell its manufacturing facility in Belgium
ON Semiconductor says that it is exploring a sale of its manufacturing facility in Oudenaarde, Belgium.
Load more news
