Components | July 16, 2012
1HJul. NAND Flash contract price stabilizes
According to DRAMeXchange, since the beginning of June, to meet system clients’ inventory replenishment demand for certain new products hitting the market in the third quarter, NAND Flash suppliers have been strategically reducing the production ratio of TLC products for the UFD and memory card markets.
Manufacturers are increasing the output ratio of MLC products, the mainstream for system products, to ease oversupply on the memory card and UFD markets, which are currently showing weak demand. Although the memory card and UFD market demand is sluggish, the quarter-end effect for the second quarter has ended and suppliers have experienced profitability cannibalization as prices have continued to fall in the past half year; thus, manufacturers are unwilling to offer aggressively promotional pricing to stimulate sales. Furthermore, suppliers expect demand from some smartphone, tablet PC, and ultrabook clients’ OEM orders will gradually warm in the third quarter. Therefore, average NAND Flash contract price stayed mostly flat in 1HJul., showing a stabilized trend for the first time in 2012. The NAND Flash market will be influenced by the following factors in the third quarter of 2012: 1. Although some eurozone debt issues have seen slight relief recently, global economic recovery is expected to be slow in the second half of 2012, and the traditional peak sales season for electronics in European and U.S. regions will likely not be as strong as in the past. 2. As the release dates for many manufacturers’ new smartphone, tablet PC, and ultrabooks models are set to coincide with the arrival of some new software and hardware components, NAND Flash inventory restocking demand may be delayed and concentrated until late August to early November. 3. In consideration of market demand for the second half of 2012, major NAND Flash suppliers will use launch effects of some new system products to partially make up for weaker than usual peak season sales in the second half of 2012. Some manufacturers plan to slow output pace to ease market oversupply, and may temporarily suspend capacity expansion plans or reallocate a portion of capacity to LSI or DRAM production. Meanwhile, as some makers’ 20nm class process yield still needs to see improvement in the third quarter, 20nm class products will not become the market mainstream process until the fourth quarter of this year, which will help slow the rate of NAND Flash supply growth in the third quarter. 4. Although the large price decline cannibalized NAND Flash suppliers’ profitability in the first half of 2012, it will also spur system product clients to adopt higher-capacity eMMC, mSATA, and SSD products in the second half of the year. As 20nm class process technology gradually matures in the fourth quarter, NAND Flash content per unit will increase in smartphones, tablets, and PCs etc. In summary of the aforementioned market factors, as global economic recovery is progressing slowly, vendors are unable to predict sales performance for new products in the fourth quarter; as a result, system clients’ OEM order visibility is reduced to one to two months. However, manufacturers are slowing the rate of supply growth and most downstream clients’ inventory levels have been decreasing, which will help NAND Flash contract price stabilize in the short term. However, the extent and lasting time of the price rebound will depend on actual market restocking demand in August to October.
Seagate to consolidate operations in the US On June 1, 2020, Seagate Technology committed to a restructuring plan with the aim reduce its cost structure, and invest in future opportunities. The company also intends to consolidate its Minnesota facilities into one location.
SkyWater chosen for volume US manufacturing of temperature sensing chip Foundry partner, SkyWater Technology, has been chosen by investment firm, Asymmetric Return Capital (ARC) and Linear ASICs, a fabless analog and mixed-signal semiconductor company, to volume manufacture a microchip with temperature sensing capabilities used in a low-cost, smartphone-enabled wireless patch that assists in the remote detection of COVID-19.
Samsung expands with new NAND flash facility Samsung Electronics plans to expand its NAND flash production capacity in Pyeongtaek, Korea, in order to improve its ability to meet demands from emerging technologies.
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.Load more news
- Raspberry Pi audio HAT board with MERUS class D multilevel amplifier
- Romanian EMS provider expands as it relocates
- ASML ships first-generation multibeam inspection system ‘eScan1000’
- Gémosz is still looking to grow – but the pandemic brought new perspectives
- North American PCB industry sales up 4.3% in April