Electronics Production | April 07, 2008
iSuppli cuts 2008 NAND growth forecast
Amid signs that major buyers are slashing their expected order growth for NAND-type flash in 2008, iSuppli is cutting its forecast for global revenue growth for the memory this year by about two-thirds.
Global NAND flash memory revenue now is expected to rise to $15.2 billion in 2008, up 9% from $13.9 billion in 2007. iSuppli's previously forecasted global NAND revenue would rise by 27% in 2008 to reach $17.9 billion. The revised forecast lowers expected worldwide NAND revenue growth by two-thirds, 18 percentage points and $4 billion. Chart: iSuppli's new global flash-memory revenue forecast “The major factor behind the diminished outlook is weakening consumer spending,” said Nam Hyung Kim, director and chief analyst, memory ICs/storage systems for iSuppli. “NAND flash is used heavily in consumer-electronics applications-including MP3 players, USB flash drives and digital still cameras-which are driven by retail sales to consumers. Spending growth on these items is expected to slow in 2008 compared to 2007 due to the U.S. subprime mortgage crisis and its collateral impact on worldwide consumers and economies. In light of this development, the world's largest buyers of NAND-type flash will slow their spending growth in 2008.” As iSuppli first reported in February, Apple, the world's third-largest OEM buyer of NAND flash, has slashed its expected 2008 order growth forecast. Subsequent press reports from Asia indicate that Apple has not commenced making large-scale orders to NAND suppliers in 2008, contrasting sharply with the huge purchases the company made in 2007. Furthermore, Intel Corp., a supplier of NAND flash to Apple, issued a financial warning that cited weakening prices for the memory. Finally, Korea's Hynix, the world’s third-largest supplier of NAND, said it was reducing its output of the memory due to weak market conditions. “iSuppli now predicts Apple's spending on NAND-type flash memory will rise 12 percent to reach $1.4 billion in 2008, up from $1.2 billion in 2007,” said Min-Sun Moon, analyst for OEM semiconductor spending and design influence at iSuppli. “Before word of Apple's cut in its expected order growth, iSuppli had predicted the company's NAND flash purchases would rise by 32.2 percent this year, reaching $1.6 billion. iSuppli's new forecast means Apple will spend $400 million less on NAND flash in 2008 than previously expected, an event that will have a major impact on the worldwide memory market.” The vast majority of this NAND flash will be used in Apple's lines of flash-memory-based iPods and iPhones. Apple in 2008 is expected to increase its use of NAND for Solid-State Drives (SSDs), which are available as an option in its MacBook Air notebook PC. However, the volumes of SSDs expected to be sold by Apple won't come close to compensating for the reduced order growth for NAND for its highly popular iPods and iPhones. In order to plan production, suppliers of commodity components like flash memory work closely with their major customers to forecast expected demand levels for the coming quarters. News that a major buyer is slashing its expected order growth levels has a major effect on the supply/demand balance and pricing of a commodity part, such as NAND flash memory. Table: iSuppli's ranking of the Top-10 NAND flash suppliers in 2007. With its finger on the pulse of consumers, and its agile approach to managing its supply of key components, Apple can serve as a leading indicator of commodity market trends. However, it is not the only company whose NAND purchasing is being impacted by weakening consumer spending. SanDisk, the world's largest NAND flash buyer in 2007, now is expected to purchase $2.2 billion worth of the memory in 2008, up 8.4 percent from $2 billion in 2007, according to data from iSuppli's OEM Semiconductor Spend Analysis Tool. iSuppli previously predicted SanDisk's NAND spending growth would rise by 33 percent in 2008. The world's second-largest NAND flash buyer in 2007, Sony Corp., now is expected to buy $1.4 billion worth of NAND-type flash in 2008, up 6.8 percent from $1.3 billion in 2007. iSuppli previously predicted the company's spending would rise by 16 percent this year. The worldwide average per-megabyte price for NAND flash memory declined by 36 percent in the first quarter, which will followed by a 13 percent decrease in the second quarter, iSuppli predicts. iSuppli expects that prices will stabilize somewhat early in the second quarter as OEMs replenish their inventory, leveraging low NAND prices. The pricing stabilization in mid-2008 will allow global NAND revenue to achieve positive revenue for the year.
Celestica to manufacture ventilators for the Canadian market EMS provider Celestica has won a program to build 7,500 ventilators for StarFish Medical Inc., a Canadian medical device company, at Celestica’s operation in Newmarket, Ontario.
Ouman Estonia starts an expansion project Despite the current uncertain economical environment, Ouman says it believes in a brighter future and that the company is proud of the performance in its factories.
Reshaping production post COVID-19 As manufacturers re-open after COVID-19 related lockdowns, economic and supply chain disruptions may be felt beyond 2020. How companies shift in the short-term and plan for the long-term will be factors in defining “new normal” for the component industry.
Swedish EG Electronics acquires WEAB EG Electronics AB, a KAMIC Group company, has acquired all the shares in WEAB, Wermlands Elektronik AB.
ZF completes its acquisition of WABCO ZF Friedrichshafen AG has successfully completed the acquisition of commercial vehicle technology supplier WABCO, having gained approval from all required regulatory authorities.
Romanian EMS provider expands as it relocates Romanian EMS-Electra has successfully finalised the process of relocating to a new building, in the industrial area of Iasi, Romania.
Circuit Check partners with major healthcare company to build ventilators In early March, when a long-standing customer to the company, a major healthcare company approached Circuit Check to partner together to build over a dozen tests systems to assist in the COVID-19 efforts, Circuit Check responded quickly to the challenge.
TI maintains firm grip as world's top analog IC supplier TI's 2019 analog marketshare grew to 19% and ST climbed to fourth place as the top-10 suppliers collectively accounted for 62% of total analog sales.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.Load more news
- China falls far short of its "Made-in-China 2025" goal
- Raspberry Pi audio HAT board with MERUS class D multilevel amplifier
- ASML ships first-generation multibeam inspection system ‘eScan1000’
- Romanian EMS provider expands as it relocates
- Gémosz is still looking to grow – but the pandemic brought new perspectives