© wrangler dreamstime.com Components | October 09, 2018
DRAM and NAND Flash products with price decline in 4Q/18 and 2019
DRAM products have begun to see a weak price trend, showing only a 1~2% QoQ hike in contract prices for 3Q18 due to the continued oversupply, despite the coming of holiday sales season.
DRAMeXchange expects the quotations of DRAM products to decline by 5% or more QoQ in 4Q18, terminating the super cycle of price growth for nine consecutive quarters. NAND Flash experienced a price drop of around 10% in 3Q18 and expects a steeper drop of 10~15% in the fourth quarter, considering the impacts of trade war. Contract prices of 3D TLC NAND Flash chips in the channel market may even drop by more than 15% in 4Q18. Average DRAM price to drop by 15~20% YoY in 2019 due to the weak price trend of server DRAM DRAMeXchange points out that the main reasons behind the falling demand for DRAM are at various levels. First, the smartphone market this year may not see remarkable shipments, since the replacement demand for smartphones has been sluggish due to the lack of differentiation among products in terms of hardware specifications. Second, the server shipments are uncertain. Third, the notebook and PC shipments may be impacted by the shortage of Intel CPUs. Considering the supply situation in 2H18, DRAM manufacturers all expect a high possibility of oversupply in 2019. Therefore, they have tried to postpone or slowdown the capital expenditure and capacity expansion. The bit output has been increasing in Q3 and Q4 this year thanks to the increased share of products on the 1X/1Y nm processes and raised yield rate of the technology. Particularly, server DRAM products show the highest increase in output, of which the 1Gb solutions are the most profitable among other applications. Therefore, the server DRAM segment would highly likely see a weak price trend in the coming quarters, lowering the ASP of DRAM as a whole. For 2019, DRAMeXchange expects the annual bit output to increase by nearly 22%, with the 1X/1Y processes going mature and the wafer starts increasing, although manufacturers have become more conservative in capacity expansion. However, the trend of DRAM prices will depend on the growth momentum in the demand side, especially server shipments and average content per box. Currently, DRAMeXchange expects the DRAM prices to drop by around 15~20% in 2019, but the price decline may be steeper if the demand for servers and smartphones weakens. NAND Flash to see 25~30% price decline in 2019 due to increased 3D NAND production capacity NAND Flash market is also influenced by the sluggish demand for consumer electronics, while demand for the more profitable Enterprise SSD from servers and data centers remains stable. However, the competition among Enterprise SSD suppliers will become increasingly fierce; hence the prices of Enterprise SSD are very likely to continue decreasing in 2019. On the supply side, NAND Flash suppliers have raised their output forecasts as they have expanded their production capacity and improved the yield rates of their 64/72-layer 3D NAND production. DRAMeXchange now anticipates continuing price decline during the traditional slow season of 1H19. Because of the seasonal headwinds, shipment forecasts for smartphones, notebooks and tablets are fairly conservative for the first half of next year, together with the following-up impacts of China-US trade war. The gap between supply and demand may be moderated if the NAND Flash manufacturers postpone their capacity expansion and transition to 96-layer 3D NAND devices. By 4Q19, the overall production capacity of NAND Flash is expected to grow by 5% YoY, of which the capacity of 3D NAND production would increase significantly by 20% YoY. Hence, for the NAND Flash manufacturers’ capital expenditure, DRAMeXchange now expects further downward revision for their spending plans for 2019.
Smoltek signs evaluation license agreement with capacitor manufacturer Swedish technology company, Smoltek, says that it has signed an evaluation agreement with an unnamed manufacturer of capacitors.
Pervasive Displays increasing manufacturing capacity e-paper display manufacturer, Pervasive Displays (PDi), says it has made a major advancements in product reliability and manufacturing capacity to improve the automated production of electronic paper displays (EPDs).
Analog Devices prioritises the medical field during pandemic Analog Devices, Inc. has taken a series of actions to support the global response to the COVID-19 pandemic by expediting production of its healthcare technologies that can help fight the outbreak.
Autec Power Systems & New Yorker Electronics inks agreement Autec Power Systems, a provider of custom power supplies, high-efficiency LED Drivers, switching power supplies and power management products, has signed accredited distributor New Yorker Electronics to a new distribution pact.
MagnaChip Semiconductor to sell its foundry business and Fab 4 MagnaChip Semiconductor says that certain of its wholly-owned subsidiaries have entered into a definitive agreement to sell the company's Foundry Services Group and the factory in Cheongju (Fab 4), the larger of the company's two 8" manufacturing facilities.
Singulus Technologies temporarily reduces business operation Against the backdrop of the current situation related to the spread of COVID-19 and the resulting restrictions in private and business lives, Singulus Technologies is implementing short-time work at two of its German sites.
Kyocera to acquire Japan-based Showa Optronics Kyocera Corporation has entered into a share transfer agreement with NEC Corporation on March 25, 2020 to acquire all of NEC’s shares in Showa Optronics Co., Ltd., an optical components manufacturer.
Analog Devices withdraws second quarter outlook The economic and social effects caused by COVID-19 are currently creating supply chain disruption and uncertainty around future demand.
Movement control order restricts production for Renesas in Malaysia Due to a Movement Control Order announced by the Malaysian government, Renesas three production sites located in the country temporarily halted productions from March 18, 2020.
TTI remains operational during COVID-19 pandemic TTI, Inc. says it remains open following the guidelines mandated by local and federal governments during the COVID-19 coronavirus outbreak, with precautions in place to safeguard employees’ health.
Nokia completes acquisition of Elenion Technologies Nokia says it has completed its acquisition of U.S.-based supplier of silicon photonics technology, Elenion Technologies.
Nexperia CEO Frans Scheper retiring On March 24, 2020, Nexperia announced that CEO Frans Scheper has decided to take early retirement and will step down as Nexperia CEO and Management Board Member per March 25, 2020.
Intellitronix seeing interest from Ford Ohio-based Intellitronix Corporation, a subsidiary of US Lighting Group, has been invited by the Ford Motor Company to submit a proposal to design and manufacture an automotive electronics component for one of the automaker’s upcoming vehicles.
NEXT Biometrics receives additional order from government program in India NEXT Biometrics has received an additional order for UIDAI and STQC certified fingerprint biometric readers in India valued at USD 360,000. The customer has provided a 20% upfront payment and the readers have been delivered to the customer.
Elmos is planning short-time work Because of the global corona pandemic, Elmos Semiconductor AG is planning to introduce short-time work of up to 50%.
paragon reacts to production stoppages by carmakers paragon is set to take immediate action in response to moves by automotive manufacturers closing down their plants. The company is now reducing production at its automotive manufacturing sites in Germany to a minimum for the time being.
STMicro to temporarily cut 50% of French production The semiconductor company has reportedly agreed to temporarily reduce its production in France by up to 50% as the company works to stymie the spread of COVID-19.
The Infineon site in Villach is growing Infineon’s investment in a new automated chip factory and a research building at its site in Villach is making progress.
Panasonic eyes multi-use potential for PanaCIM Panasonic, in their push more deeply into smart manufacturing solutions, has partnered with MiR and Inovaxe to develop a handy helper: the PanaCIM Solutions Ecosystem.
Rutronik & Gowin inks distribution agreement for EMEA and NA Rutronik Elektronische Bauelemente GmbH is expanding its portfolio to include the Gowin Semiconductor Corp. product range.Load more news