© pichetw dreamstime.com Components | December 16, 2019
Spot prices see sharp upturn
DRAM spot prices have begun to rebound, in turn improving the overall DRAM market sentiment, and memory component buyers in the contract market will be induced to raise their inventories as well. Contract prices are expected to rally as early as 1Q20.
TrendForce indicates that there has been an influx of downgraded 1Xnm chips in the spot market at rock-bottom prices due to product returns. Although downgraded chips are currently still being returned, memory module makers and channel brokers have become more willing to raise their inventories. With the stockpile of downgraded 1Xnm chips being quickly digested, spot prices have also started rising. In terms of the overall supply and demand situation, the 4Q19 DRAM market is still slightly skewed toward oversupply despite five quarters of inventory adjustment. Furthermore, although the overall 1Q20 DRAM demand will be stronger than usual despite seasonality, the reversal of oversupply will occur no earlier than in mid-2020. However, DRAM price upturns historically tend to precede reversals in supply/demand dynamics; as a result, TrendForce previously stated that DRAM ASP could start to rally by the beginning of 2Q20. However, the sharp hike in spot quotes this week has altered the outlook for next year due to its potential to galvanize demand and affect contract negotiations. The effect of this development will be especially felt in the server DRAM segment because issues with the 1Xnm production across the DRAM industry have had a disruptive effect on the supply of memory products as a whole. TrendForce’s latest updates to its 1Q20 price forecast are as follows: contract prices of PC DRAM, specialty DRAM, and mobile DRAM products will experience minor QoQ drops, while contract prices of server DRAM products will register a QoQ increase. With the anticipated cyclical upturn in prices first occurring in the server DRAM segment, the overall DRAM ASP may also hold steady at about the same level as in 4Q19. Price hikes of server and Graphics DRAM lead the way for cyclical upturn in 2020 DRAM prices TrendForce’s observation of the DRAM market finds an increase in quantities of server DRAM traded and an easing of the price decline. These trends indicate that server OEMs are becoming more proactive in building up their DRAM inventories. Looking ahead to 1Q20, because of existing instabilities in the supply of products built on 1Xnm processes, as well as fairly robust short-term demands, server DRAM ASP is expected to rally, with a 5% increase QoQ. Besides the latest revision to the price forecast of server DRAM, TrendForce has also corrected upward the price forecast of Graphics DRAM. The inventory level of GDDR5 products on the supply side has come down to a relatively low level after a period of adjustments. Furthermore, GPU makers are shifting their demand to next-generation GDDR6 products. With the demand side anticipating rising quotes in the future, contract prices of Graphics DRAM products are projected to post a minor QoQ increase.
More information can be found at Trendforce.
More information can be found at Trendforce.
Hirose’s Malaysian factory has been temporarily closed The connector company had to temporarily close its operations in Malaysia on March 18 following a government order. The order is a precautionary measure against Covid19 and is affecting most of the country’s industries.
COVID-19: Vishay provides operational update The manufacturer of discrete semiconductors has provided an update on the operational status of its manufacturing facilities amidst COVID-19 pandemic.
Axcelis receives its first order For Purion in Japan Axcelis Technologies, a supplier of high-productivity solutions for the semiconductor industry, says it has received an order to ship its first Purion system into Japan.
NXP invests in Kalray An EUR 8 million equity investment to strengthen partnership between the companies who will co-develop, jointly promote and deploy autonomous driving solutions on the market.
SEMI urges ‘essential business’ designation of semi companies SEMI has urged government representatives around the U.S. and world to designate the semiconductor industry as an essential business so operations at companies across the chip supply chain can continue without interruption as the spread of COVID-19 continues.
Digi-Key inks distribution partnership with Siglent Technologies Digi-Key Electronics has expanded its product portfolio by signing a North American distribution partnership with Siglent Technologies, providing its customers with electronic test and measurement solutions.
Jenoptik supplies infrared optics to Rheinmetall The photonics group Jenoptik will supply infrared optical components to Rheinmetall between 2020 and 2025.
Kyoto Semiconductor names new president and CEO As of April 1, 2020, the company has announced that a new management system will begin, with Tsuneo Takahashi set to become its new President and CEO.
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.Load more news