Components | January 17, 2012
Wait-and-See Atmosphere Results in Mostly Flat DRAM prices
According to DRAMeXchange, a research department of Trendforce, as the Chinese New Year long vacation approaches, the NAND Flash market is currently experiencing a wait-and-see atmosphere.
As some downstream clients still have enough inventory on-hand, most clients are unwilling to significantly increase purchase volume prior to the holiday. Instead, they are choosing to reduce risk by waiting until after Chinese New Year to replenish inventory based on holiday sales results. Additionally, after suppliers endured significant price decreases to stimulate sales in 2H11, in order to reduce profit erosion from price declines, lately price decreases have shrunk. Therefore, 1HJan. NAND Flash contract price stayed flat for the most part, with a few suppliers making slight downward adjustments for only 2xnm-node 32Gb and 64Gb MLC chip contract price.
The future NAND Flash market will be influenced by the following market factors:
1. The European debt crisis continues to cause a stir on financial markets, resulting in concerns towards global economic recovery in 2012. However, with European financial integration to take place via political negotiations at the end of January, there is hope that cooperation will result in a satisfactory solution. Meanwhile, certain international organizations will also focus on the European debt issues in 1Q12, coordinating with major nations to propose collaborative action that will help cope with the economic instability. Thus, uncertainties caused by the European debt crisis may gradually dissipate after 1Q12.
2. As China’s domestic economy remains steady, Chinese New Year holiday sales is expected to be stable, which will benefit post-holiday client inventory replenishment demand.
3. Ultrabook and tablet PC models exhibited at the international Consumer Electronics Show (CES) will stimulate new demand for SSD, NAND Flash cache, and eMMC in 1Q12.
4. Certain system clients may unveil new tablet PC or smartphone models in 1Q12, which could also bring new NAND Flash inventory restocking demand.
5. Beginning in February, some NAND Flash suppliers will gradually increase the proportion of 20nm-class process products to strengthen cost competitiveness, which will also increase NAND Flash bit output volume.
Comprehensive analysis of the above factors indicates that after the Chinese New Year long holiday, supported by inventory replenishment demand, NAND Flash contract price may cease falling and stabilize in the short term. However, the price trend in the traditionally weak season of 1H12 will still depend on the unveiling effect from new NAND Flash end products, the status of global economic recovery, and NAND Flash suppliers’ capacity adjustment plans.
Three Highlights of CES 2012 to Stimulate NAND Flash Demand, SSD Unit Cost May Fall Below US$1 in Late 3Q12
According to TrendForce research, with ultrabooks, tablet PCs, and USB3.0 taking center stage at CES 2012, demand for related NAND Flash applications such as SSD and eMMC will see explosive growth. Benefitting from universal integration of USB 3.0 slots on Intel’s new platforms, USB 3.0 flash drive and external hard drive penetration rate will increase as well. Overall, all smart mobile devices will continue to stimulate improvements in internal storage media performance and capacity, while NAND Flash cost will decrease quarterly as process technology advances. TrendForce expects SSD unit cost may dip below the US$1 mark at the end of 3Q as the newest process technology products officially enter mass production.
TrendForce believes the biggest highlight of CES 2012 was ultrabook products. As PCs are facing fierce competition from smartphones as well as rapid cannibalization by tablet PCs, TrendForce forecasts this year’s industry growth rate at a mere 10% or so. Up against Apple’s celebrity-status product, the MacBook Air, other vendors must place their focus not only on ultrabook product performance – ultrabook prices must be able to compete with the MacBook Air.
Many makers will introduce new ultrabook models around late 1Q to early 2Q as the new Ivy Bridge platform hits the market. This will stimulate SSD cache applications, and mainstream capacity will be 16GB/32GB. Ultrabook market share is expected to increase rapidly beginning in 3Q, with a forecasted 10% of total notebook shipments in 2012, which will also benefit the SSD market. SSD NAND Flash consumption volume will increase significantly, from 5.1% in 2011 to 15% in 2012, to become the category with the strongest growth momentum amongst the numerous NAND Flash application products.
GlobalWafers increases its offer for Siltronic
GlobalWafers says it has increased its all-cash takeover offer of Siltronic, by its subsidiary GlobalWafers GmbH, to EUR 140 per Siltronic share.
NI and Konrad ink agreement to accelerate autonomous vehicle test
NI and Konrad Technologies (KT) have entered into a strategic agreement to develop test systems and solutions for autonomous driving software and hardware validation.
Sponsored content by Shenzen Kinwong Electronic
The development trend of printed circuit board products and Kinwong's solution
With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
Intel expands in Poland
The US chipmaker is preparing to expand its operations in the Polish city of Gdańsk. The company will be constructing its sixth building at its campus in the city.
Murata completes new Okayama production building
The Japanese company’s production subsidiary, Okayama Murata Manufacturing, initiated an expansion of its operations in Setouchi City with a new production building in December 2019. Now the building stands complete.
Osram signs supply and commercial agreement with LeddarTech
ADAS and AD sensing specialist, LeddarTech, and automotive lighting and laser systems supplier Osram, have entered into a long-term agreement.
ITW to acquire MTS Test & Simulation business From Amphenol
Illinois Tool Works Inc., a global multi-industrial manufacturing company, and the provider interconnect, antenna and sensor solutions, Amphenol Corporation, have entered into an agreement under which ITW will acquire MTS Systems Corporation’s Test & Simulation business, following the closing of Amphenol’s acquisition of MTS.
Tobey Gonnerman named Fusion Worldwide's new President
The global sourcing distributor announces that Tobey Gonnerman has been appointed as the company’s new President.
Solving the Cable TV Infrastructure Downstream Transmitter Challenge
Driven by demand for faster internet connectivity, the cable TV industry has developed new network architectures for the delivery of multigigabit services to subscribers. This fiber deep approach, using a remote PHY device (RPD), moves critical hardware closer to the users by using digital fiber.
Boyd expands its footprint with new facility in Mexico
Thermal management and engineered material solutions specialist Boyd Corporation, has expanded its presence in North America with a newly built facility strategically located in Juarez, Mexico.
Farnell becomes a global distribution partner NI
the distributor of electronic components, products and solutions has been appointed as an NI Authorized Distributor, expanding its product portfolio to include NI software-connected test and measurement solutions for customers of all sizes.
Foxconn and Winbond invest in chipmaker Kneron
Foxconn and Winbond joins companies such as Qualcomm, Horizons, Sequoia and Weltrend as high profile investors in Kneron
EV Group sets up customer training facility at HQ
EV Group (EVG) has established the EVG Academy, a training facility for customers that provides technical training on all classes of the company's equipment as well as on its CIM Framework software platform in an optimised environment.
Denso team up with Aeva to develop sensing and perception systems
Mobility supplier Denso says that it is partnering with U.S. LiDAR and perception systems company, Aeva, to develop next-generation sensing and perception systems.
Fire hit Taiwanese MLCC manufacturer in China
On January 13 a fire broke out at Taiwanese passive component maker Walsin Technology’s Dongguan, China site.
Thin Film Products joins SERMA Microelectronics
SERMA Microelectronics, a subsidiary of the French electronics specialist SERMA Group, has finalised the purchase of TFP (Thin Film Products), a French manufacturer of thin-film microwave circuits for space, military and civil applications.
New Korean Zestron Technical Center opens for customers
The provider of high precision cleaning products has expanded its operations by opening a new Technical Center, located in Anyang, Korea.
A2 Global Electronics names new executives
Electronic component distribution and supply chain service provider, A2 Global Electronics, has appointed Anthony Andriano as its new Chief Financial Officer and promoted Jesper Romell as its new President.
ROHM expands production capacity of SiC power devices
ROHM has recently held an opening ceremony announcing the completion of a new building at ROHM Apollo's Chikugo plant, which the company started building back in February 2019, to enhance the production capacity of SiC power devices.
Elmos acquires Online Engineering GmbH
Elmos is strengthening its in-house competencies in software engineering via the acquisition of Dortmund based engineering service provider Online Engineering.
Plasmatreat expands with new subsidiary in Switzerland
The technology company says it has further developed its international proximity to its customers by founding its new subsidiary Plasmatreat Schweiz AG, and thus taking steps to better serve the Swiss market.
RAFI Group increases their presence on the Nordic market
The RAFI Group, a specialist of human–machine interaction and EMS, increases their presence on the Nordic market in 2021. Stefan Steiner has been named the RAFI sales manager for the Nordic operations located in Stockholm.
Filtronic wins new UK defence contract
UK designer and manufacturer of antennas, filters and mmWave products, Filtronic plc, has won a significant contract from a new major UK defence customer for the supply of battlefield radio communications hardware valued at over GBP 1 million.
A2 Global expands with new facility in Singapore
Electronic component distribution and supply chain service provider, A2 Global Electronics, announces the opening of its new distribution facility located in the New Tech Park area of Singapore.
Sensata acquires majority ownership of Lithium Balance
Sensata, an industrial technology company that develops sensors and sensor-based solutions, has acquired 75% of Lithium Balance based in Denmark.
Analog Devices to shutter California facility
In a WARN notice, the company says that due to changing business needs will require the company to permanently close its facility Milpitas, California.
Intelliconnect moves to larger factory as sales grow
Intelliconnect (Europe) Ltd the UK based specialist manufacturer of RF, waterproof and cryogenic connectors and cable assemblies, announces that it has moved to a larger facility at the Corby Innovation Hub following sales growth of 30% in 2020.
Load more news