© fotosonar dreamstime.com Analysis | May 29, 2014
DRAM industry value nearing USD 10 billion in 1Q14
The DRAM market became highly profitable last year after transforming into an oligopoly, according to DRAMeXchange, the memory and storage research division of TrendForce.
The entire Q1 industry value grew 2% QoQ to reaching new heights at US$ 9.94 Billion. SK Hynix, one of the industry's largest DRAM manufacturers, managed to show a highly noteworthy performance following its recovery from last year's fire accident with operating margin growth jumping from 29% to 36%. As other DRAM manufacturers display similarly impressive performances this year, 2014 is considered an optimal for the entire DRAM industry, TrendForce predicts that the total DRAM industry value will grow 30% YoY to approximately US$ 45 Billion. DRAM Manufacturer Highlights Samsung: Samsung is known to be the earliest company in the industry to migrate towards 25nm manufacturing technology and is currently expected to raise its 25nm production yield to over 50% for 1H 2014. Mass production involving the Korean company's next generation 23nm and 21nm technologies are anticipated to occur at some point during 2H 2014. Although the industry’s average price decline has caused Samsung’s revenues to drop by 7% QoQ during 1Q14, the Korean giant’s overall profit growth has remained relatively strong due to its effective cost structure. For the entire 1Q14, Samsung’s DRAM profits rose by approximately 21% QoQ. SK Hynix: due to its Wuxi Plant's full recovery, the successful transition made from 38nm to 29nm technology, and the low base period in the fourth quarter, SK Hynix's Q1 revenues and profits jumped by 21% QoQ and 28% QoQ, respectively. The company is currently producing 25nm wafers on a large scale, and is expected to gradually raise their proportion throughout the second half of 2014. Micron: the New Micron Group is continuing to maintain a steady presence in the DRAM market. Although its revenues remain relatively unchanged from the previous quarters, the company was able to improve its Q1 profits by an impressive 21% QoQ with its optimized product mix. The majority of Micron's products are currently still manufactured using the 30nm manufacturing process. In 2H 2014, the former Elpida fab will begin to make a massive transition towards 25nm technology, whereas the original Micron facilities are expected to begin testing the 20nm process during 4Q 2014. The mass production for the 20nm products is expected to begin at some point during 1H 2015. In the upcoming periods, the New Micron Group will be expected to place the majority of its focus on Mobile DRAM and Server DRAM products, both with greater profitability. Nanya: despite shifting its main focus to Specialty DRAM, Nanya was able to reserve a good portion of its production capacity for PC DRAM, and managed to perform relatively well during 1Q 2014. Even though the company's Q1 revenues dropped 8% compared with the previous quarter, its overall profits still grew significantly by 34% QoQ. Winbond: benefiting from the impressive sales of Specialty DRAM and small density Mobile DRAM, Winbond saw its revenues jump by an estimated 6.2% QoQ. Revenue growth for Mobile DRAM, in particular, was approximately 17%, whereas Specialty DRAM's revenue growth also reached 6%. In 2014, Winbond will be expected to continue raising its capital expenditures. as more and more opportunities arise within the market. Other than focusing on increasing wafer output to 40K, the company will be making an effort to migrate towards the 46nm manufacturing process. With lowered manufacturing costs, the company has a good chance of raising its profits by as much as 25% this year. Powerchip: Powerchip's DRAM revenues grew 42% from the previous quarter, partly due to moving an immersion scanner to the P1+P2 plants that are intended for PC DRAM production. In the future, Powerchip will continue to adjust its OEM and PC DRAM output based on the condition in the market.
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.
Current pandemic slows down business development in German component distribution German distribution of electronic components (according to FBDi e.V.) continues to decline in the first quarter of 2020. The order situation improves slightly, at a low level. The FBDi calls for future-oriented course-setting and investments in infrastructure.Load more news