Components | August 10, 2012
Koreans take 77.5% of Mobile DRAM market
According to DRAMeXchange, the popularity of smartphones and tablet PC products has stimulated mobile DRAM demand growth in the second quarter of 2012.
Although mobile DRAM contract price fell by approximately 10% QoQ in the first quarter, mobile memory revenue unexpectedly increased by 12.4% QoQ. The revenue growth can be attributed to manufacturers allocating more capacity to mobile DRAM production as well as demand stimulation from increased low to mid-end smartphone shipments. Looking at mobile DRAM revenue figures for the second quarter, Samsung remains on top with nearly 60% of the market. The Korean memory makers’ combined revenue accounts for 77.5% of the global mobile DRAM market, 1.1% less than the first quarter. Third-place manufacturer Elpida’s market share fell by a slight 0.8% to 13.9%. Benefitting from low to mid-end smartphone growth, U.S. supplier Micron’s market share increased by 6.7%, putting the maker in fourth place. As for Taiwanese DRAM makers, Winbond has already been producing mobile DRAM for some time, and now Nanya has entered the mobile memory sector as well. Unfortunately, due to the bleak economic outlook for the second half of the year, manufacturers are becoming more conservative with regard to production and development plans, preparing instead for the worst DRAM winter since 2009. Samsung Semiconductors’ Market Share Nears 60%, Korean Makers Shine Samsung’s 2Q mobile DRAM market share is 59.6%, approximately the same as the previous quarter’s figure. Benefitting from Samsung’s increase of mobile DRAM shipments, the maker’s total DRAM revenue increased by 12.2% QoQ. From the market perspective, smartphone shipments recovered in the second quarter and Samsung’s Galaxy series is the global leader in smartphone shipments, providing a satisfactory outlet for the Korean maker’s sizable mobile DRAM capacity. Currently, Samsung’s mobile DRAM product lines, including LPDDR1 products, are on the 35nm process. As the maker continues to increase yield rates and diversify its product mix to improve profitability, Samsung is expected to remain at the top of the mobile DRAM market. SK Hynix’s mobile DRAM revenue increase by 6.4% QoQ to US$350 million, accounting for 20.5% of its total memory revenue. The maker’s market share was 17.9%, a 1% QoQ decrease, but its operating margin was positive for the first time in several quarters, indication that the maker is experiencing improved profitability. However, mobile DRAM average selling price (ASP) falls by over 10% per quarter, which presents a difficult challenge to cost structure. SK Hynix’s 38nm yield rate increase has boosted profits as well as low to mid-end smartphone demand, which in turn stimulates multi-chip packaging (MCP) product shipments. Together, Samsung and SK Hynix have over 70% of the mobile DRAM market. New Micron Group Targets Low, Medium, and High-End Smartphone Segments Elpida’s 2Q mobile DRAM market share was 13.9%, a 6.4% QoQ increase, putting the maker in third place in the global DRAM market. As Elpida has advanced mobile DRAM process technology, the maker should be able to bounce back from its financial troubles. The merger with Micron is mostly settled, and Elpida has received new orders from clients, among which Apple has increased mobile DRAM orders for the iPhone by nearly 50%, which will certainly help the Japanese supplier get back on its feet. Elpida’s prior lack of NAND flash products will be remedied through its partnership with Micron, and production of MCP products will enable the maker to break into a previously untapped market. Diversity has always been a characteristic of Micron’s mobile DRAM product lines, especially in regards to low-density MCP products, which are widely adopted in low to mid-end smartphones. Benefitting from rapid demand growth for low to mid-end smartphones in the second quarter, Micron’s revenue rose by 50% to US$130 million, pushing market share to 6.7%, a 5% increase. Additionally, Micron’s 30nm LPDDR2 products are currently in the client testing phase; the new specification will likely help increase revenue from high-density products in the future. Looking at chip developers, industry leader MediaTek’s low to mid-end smartphone chips mostly use MCP packaging, but the arrival of high-end quad-core chips next year will lower development costs for high-end smartphones. If Micron and Elpida are able to effectively integrate their NAND flash and high-density mobile DRAM product lines, the makers will be able to expand in the rapidly growing low, mid, and high-end smartphone sectors, thereby expanding their market share significantly. At present, the suppliers must focus on capacity adjustments and product line restructuring in preparation for market oversupply in the second half of the year. Based on initial calculations, combined capacity for U.S., Japanese, and Taiwanese memory makers exceeds 30K wafers per month, which puts them in second place and indicates the mobile DRAM market may see changes in the future. Product Mix Adjustment Key to Profitability for Taiwanese Suppliers Having licensed Micron’s mobile DRAM technology, Nanya is developing 30nm LPDDR2 products. Nanya’s mobile DRAM production contributed to its revenue for the first time this quarter; albeit only a 2% contribution. Nonetheless, the arrival of another Taiwanese supplier on the mobile DRAM market is significant news. Winbond’s mobile DRAM revenue increased by 1.5% QoQ, mainly from its 65nm products manufactured for the feature phone market. In the second half of 2012, Winbond plans to develop 46nm LPDDR1 (512Mb). Looking at Winbond’s financial report for the quarter, the maker’s revenue and profits are both steadily increasing; the manufacturer is focusing resources on technology migration to continue improving profitability. However, the Taiwanese manufacturers lack complete memory product lines (no NAND flash), and they must license technology from other manufacturers, which results in higher costs. If they are unable to develop diverse product combinations, it will become increasingly difficult to compete on the mobile DRAM market, and all too easy to fall into a vicious cycle if resources are spread too thin.
Nuvia closes series A, eyes data center servers Santa Clara semiconductor design startup Nuvia Inc., formed earlier this year by three former top Apple Inc. design executives, has closed its series A round with USD 53 million secured.
Ingun's going global; expands in Latin America and Eastern Europe Benjamin Sontag (INGUN Prüfmittel GmbH) gave a short update on expansion plans in Latin America and Eastern Europe.
Yageo to acquire KEMET in a $1.8 billion deal Yageo Corporation and KEMET Corporation have entered into a definitive agreement under which Yageo will acquire all of the outstanding shares of KEMET’s common stock for USD 27.20 per share in an all-cash transaction valued at USD 1.8 billion.
EVG and DELO partner to expand materials and process capabilities Supplier of wafer bonding and lithography equipment for the MEMS and semiconductor industry, EV Group (eVG), is partnering with DELO, a manufacturer of industrial high-tech adhesives, in the area of wafer-level optics.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
Osram recommends current takeover offer from ams Osram says it has concluded a business combination with Austrian chipmaker ams and is recommending its shareholders to accept the current takeover offer.
EpiWorld speeds up commercialisation of SiC devices with AIXTRON AIXTRON SE has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers mainly used for the manufacturing of power devices for automotive applications.
FlexEnable makes acquisition for flex displays FlexEnable, developer of flexible organic electronics, has purchased Merck's portfolio of high-performance organic thin-film transistor (OTFT) materials.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
Samsung’s CPU project ends, layoffs in CA and TX Samsung has confirmed in a letter to the Texas Workforce Commission that layoffs as a result of the closure of the CPU project at the Samsung R&D Center (SARC) in Austin, Texas and the San Jose Advanced Computing Lab (ACL) in San Jose, California, will begin December 31.
Marvell completes acquisition of Avera Semi Marvell has completed its acquisition of Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GlobalFoundries.
IAR Systems opens office in Taiwan Swedish IAR Systems, a supplier of software tools and services for embedded development, says the company is expanding in Asia with the opening of an office in Taipei, Taiwan.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
ZF and Cree partners up to advance the electric drive ZF Friedrichshafen is teaming up with silicon carbide semiconductor specialist Cree, to create industry-leading, highly efficient electric drivelines.
Broadcom completes acquisition of Symantec Enterprise Security business Semiconductor company Broadcom, says that the company has completed its acquisition of the Enterprise Security business of Symantec Corporation
AVX acquires Chengdu OK New Energy AVX Corporation says it has completed the purchase of Chengdu OK New Energy, Ltd. (COKNE).
Vesper names new SVP of worldwide sales & business development MEMS sensor company Vesper, announces that Lorenzo Ponzanelli has joined the company as senior vice president of worldwide sales and business development, overseeing sales strategy and execution to drive global growth.
Gigaphoton establishes new company in China Gigaphoton, a manufacturer of light sources used in semiconductor lithography, says it has established and started running the business of a new company – Gigaphoton China Inc. in China.
Prepare, adapt & overcome - how ‘to Brexit’ The looming, but yet unknown, effects of Brexit have forced companies to prepare for whatever may come. But how does one really prepare for unknown consequences?
Acal BFi signs pan-European agreement with Champs Technologies Acal BFi says it has added Champs Technologies to its magnetics portfolio. Acal BFi is a Europe-wide specialist technology supplier and design partner with a specialist portfolio of magnetic cores and inductive components products and services.
POET’s sale of DenseLight Semi to close POET Technologies Inc. announced the sale of its subsidiary, DenseLight Semiconductors Pte. Ltd. to DenseLight Semiconductor Technology (Shanghai) Co. Ltd. is scheduled to close on or before Friday, November 8, 2019.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Odyssey Semiconductor picks up wafer fab Ithaca, New York’s Odyssey Semiconductor Technologies, specializing in high-voltage power switching components and systems based on proprietary gallium nitride (GaN) processing technology, has acquired an integrated semiconductor design, fabrication, test, and packaging facility.
RBVC, Ford and BMW invests in flexible electric circuit start-up Robert Bosch Venture Capital GmbH (RBVC), the venture capital company of the Bosch Group, announces that it has completed a series B follow-on investment in CelLink Corporation.
Alex Davern to step down as CEO of National Instruments NI has announced that Alex Davern will step down as Chief Executive Officer of the company, effective January 31, 2020. The NI Board of Directors has appointed current President and COO, Eric Starkloff, as NI President and CEO, effective February 1, 2020.
RoodMicrotec takes leading role in APPLAUSE A consortium of 31 key players for packaging of electronics, optics and photonics, equipment suppliers and testing experts from 11 countries launched a new project, “Advanced packaging for photonics, optics and electronics for low cost manufacturing in Europe,” simply called APPLAUSE.Load more news