© begemot 30 dreamstime.com Components | August 05, 2019
Wafer prices to grow against the trend
DRAMeXchange estimates contract prices still trending down overall, but those for mainstream products shrinking due to the Toshiba outage directly impacting production.
Furthermore, Japan's modifications to South Korean-bound export regulations were also anticipated by the market to impact South Korea's NAND Flash supply. TrendForce suggests that Japan's move was merely the removal of South Korea from its white list, in which countries to receive favorable treatment were listed and with South Korea as the only Asian country listed in the past. South Korea will merely turn from a country receiving special treatment into a normal one, and South Korean semiconductor suppliers will have to go through the same proceedings as other Asian countries do. And since the Japanese government has already assigned additional personnel to speed up reviewing, this move probably won't be causing much of an impact. An observation of quote trends one by one yields that wafer prices in channel markets will be impacted the most severely and show the most drastic bounce. The ASP for these products has already gone through a long period of decline since November 2017 until now and has neared cash costs. Western Digital, who carries a good deal of influence in the wafer market, was also directly impacted by the Toshiba outage. In light of these two factors, suppliers have all raised wafer prices in July, at the end of which it has already grown by over 15%. The effects of the outage may persist into August looking forward, and may continue to bring prices up, but the extent of that growth won't be as drastic as when it first bounced in July. eMMC/UFS and Client SSD Contract Prices Continued Falling in 3Q, but May Stabilize in 4Q TrendForce points out that looking at eMMC/UFS for consumer products and smartphone clients, contract prices for major customers were mostly agreed upon in June, and though demand in 3Q was propped up somewhat by the peak-season, it remained weak due to international uncertainties, causing contract prices to exhibit a decline of around 5%. TrendForce's outlook for 4Q gives that prices for some low-capacity products may be adjusted slightly upwards while the rest trend flat. Client SSDs were likewise affected by contract prices formerly agreed upon. Adding that market inventories remained high, 3Q still saw a near-10% decline. However, suppliers' inventories are forecast to fall to more healthier levels in 4Q, which will help stabilized prices and stop them from falling. For enterprise SSDs, since Toshiba and Western Digital don't take up much of a share in this market, we don't see much of an effect on the supply side. And since demand performance was likewise affected by the US-China trade dispute, pull-ins weren't as optimistic as originally expected by the market, and contract prices for enterprise products fell by at least 15% in 3Q. The effects of the Toshiba outage will begin to manifest in 4Q, giving narrowing price declines as suppliers' inventory levels return to more moderate ranges. But due to the fierce price competition in servers, contract prices for enterprise SSDs are projected to fall slightly. TrendForce suggests that, judging from the overall composition of product portfolios, although wafers rose the most in price, it took up a rather low proportion of the market. In comparison, SSD and eMMC/UFSs took up nearly 80% of the NAND flash market and exhibited declines of 5~15%, causing prices for the overall NAND flash market to remain on a downtrend in 3Q.
More information can be found at Trendforce.
More information can be found at Trendforce.
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.
Autotalks’ global V2X solution passes dual-band Wi-Fi pre-certification V2X (Vehicle-to-Everything) communication solutions provider, Autotalks, has successfully completed Wi-Fi 5 pre-certification for its evaluation kit based on its 2nd generation V2X chipset.
First Sensor names new CFO First Sensor AG has appointed Marcus Resch as the Chief Financial Officer of First Sensor AG effective March 14, 2020, for a period of three years.
TE Connectivity acquires majority share of First Sensor TE Connectivity has completed its public takeover of Berlin-based First Sensor AG. TE now holds 71.87% shares of the German company.Load more news