© pelfophoto dreamstime.com Electronics Production | July 22, 2013
Big gains forecast in quarterly DRAM ASP
DRAM average selling prices (ASPs) have increased every month throughout 2013 and are now at levels last seen in October 2010, according to data from IC Insights.
On a quarterly basis, the DRAM average selling price jumped an estimated 42% in 2Q13 compared to the same period in 2012. The increase followed a 22% rise in 1Q13. IC Insights forecasts the DRAM ASP will grow to $2.53 in 3Q13, 50% greater than in 3Q12, and then taper slightly to $2.52 in 4Q13, which would represent a 46% increase compared to 4Q12. The increase in DRAM average selling prices has not come as a complete surprise. One factor contributing to rising prices is the fact that fewer suppliers are participating in the DRAM market today compared to 2010. Micron is (still) expected to complete its acquisition of Elpida Memory and two prominent Taiwan IC suppliers (Powerchip and ProMOS) have essentially exited the commodity DRAM business. Consequently, shipments of DRAM are in the hands of (and more tightly controlled by) fewer suppliers. Meanwhile, several years of greatly reduced capital expenditures in the DRAM market have resulted in little new capacity being added. DRAM capital spending as a percent of sales has declined from 31% in 2011, to 19% in 2012, to a forecasted 12% in 2013. With little new capacity being added, the supply-demand balance is now favoring DRAM suppliers as demand (particularly for higher-priced mobile DRAM) is beginning to outstrip supply, resulting in upward pressure on prices. Third, the computer industry is undergoing a major transition to mobile computing. Shipments of smartphones and tablet PCs are increasing rapidly while shipments of traditional notebook and desktop PCs are falling. Most DRAM suppliers have changed their product mix to meet the needs of the growing mobile market. DRAM suppliers have scaled back their output of lower-priced commodity PC DRAM and transitioned to higher-priced, low-power, mobile DRAM. Even though DRAM unit shipments are forecast to fall 8% in 2013, the DRAM average selling price is expected to jump 40% for the year. After DRAM market declines of 25% in 2011 and 11% in 2012, IC Insights now forecasts the volatile DRAM market to grow 28% in 2013.
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.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.
PCB Connect expands with new office Due to the PCB suppliers’ successful growth in Denmark, the company has now decided to invest further in the Danish Market.
Panasonic, Tesla discuss beefing up Nevada battery plant Panasonic Corporation this week said strong demand for battery cells from its U.S. partner, Tesla, has led to negotiations on the expansion of their joint plant in Storey County, Nevada.
Flex taps new leadership for automotive business Flex has named Mike Thoeny, president, Automotive Business Group, effective June 1, 2020.Load more news