© grzegorz kula dreamstime.com Analysis | July 23, 2014
Memory storage industry to see growth
The memory storage industry is expected to see overall growth in the second half of this year driven primarily by smartphone demand.
As this occurs, commodity DRAM capacity will be tight, which is expected to remain unchanged in the short term. This will bring increased demand for server as well as mobile DRAM during the second half of the year, and DRAM vendors as a result are likely to report record-high profits. In terms of the NAND Flash market, the market is expected to turn from oversupply in the first half of the year into balanced supply during the second half, as OEM and module customer demand strengthens. All of these factors will push up pricing in the industry during the second half as a result, according to DRAMeXchange, a subsidiary of Taiwan-based market intelligence firm TrendForce. Smartphone shipments cause DRAM supply to be tight; prices expected to rise Smartphone shipments in 2014 are expected to grow 29% on year to 1.196 billion due to increased demand in China as a result of 4G TD-LTE developments; the release of the new iPhone; recovery in economies across the globe, and increased demand for entry-level and mid-range smartphones. Within that number, Chinese vendors’ shipments are expected to make up 37.3%. The Chinese vendors will mostly use eMCP technology in their smartphones while the new iPhone will use LPDDR3 1GB technology. This will lead to a slight increase in mobile DRAM prices during the third quarter and will quicken the exchange of LPDDR2 technology to LPDDR3, according to DRAMeXchange Assistant Vice President Avril Wu. PC DRAM supply meanwhile is expected to remain tight into the third quarter, which can already be seen from supply imbalances with Intel chips, and is expected to see a 2.6% increase in shipments during 2015. The tight supply comes as notebook shipments are recovering better than expected, particularly following the suspension of Windows XP services, coupled with new notebook sales as a result of subsidies that have prompted positive results within the corporate PC replacement cycle. Wu also noted that end PC DRAM supply has been tight due to increased demand for Big Data, and because commodity DRAM and mobile DRAM have been in tight supply. This has led to a slight increase in pricing for PC DRAM as well as an increase in the proportion of NAND Flash SSD used. Smartphones will help balance supply for NAND Flash Going into the second half of 2014 smartphones will play a major role in the NAND Flash market. According to DRAMeXchange Assistant Vice President Sean Yang, most new smartphones from major smartphone vendors will be released after mid-3Q14. OEM manufacturers meanwhile have been gathering reserves since June and NAND flash capacity is being shifted to system products, which is putting a strain on channel customer supply. This has led to an increase in NAND Flash pricing as a result. Enterprise SSD demand will also increase in the second half as a result of increased demand for server and cloud computing storage increases coupled with the peaking mobile device segment. Some vendors may also not be able to meet demand, which will tighten up supply for NAND Flash. Additionally, Yang said that NAND Flash manufacturers have also been shifting capacity to high profit products, which should help increase performances in the second half of the year.
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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.
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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.
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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.
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