© ra2studio dreamstime.com Analysis | May 26, 2015
Profits stabilize for memory makers
Mobile memory sales accounted for 29.8% of total DRAM industry revenue in the first quarter and is expected to keep growing.
According to DRAMeXchange, a division of TrendForce, the worldwide mobile DRAM revenue reached US$3.576 billion in the first quarter, a decline of less than 1% QoQ. Mobile memory sales accounted for 29.8% of total DRAM industry revenue in the first quarter and is expected to keep growing. According to DRAMeXchange’s Assistant Vice President Avril Wu, the additional 23nm production from Samsung boosted the first quarter’s mobile DRAM shipments by 8.2% QoQ. Furthermore, the average selling prices for mobile DRAM have been relatively steady. These factors contribute to the ongoing growth of the global mobile DRAM revenues. Wu noted that mobile DRAM prices will remain stable with a slight decline in the first half of 2015. New opportunities will arise as LPDDR4 arrives on the market and replaces its predecessor. For example, Samsung is seeing stronger than anticipated shipments of Galaxy S6, which carries 3GB of LPDDR4. Additionally, it is widely expected that the next-generation iPhones will come with 2GB of mobile memory. As such, prices will fall but the decline will be very limited. Currently, mobile DRAM accounts for almost 40% of the total DRAM supply. Both the speed of technology migration and the speed of LPDDR4 transition will determine whether global DRAM suppliers will maintain profit growths in the peak season during the traditional peak season in the second half of 2015. As PC DRAM prices plummet, key to profitability lies in mobile DRAM Samsung’s first quarter mobile DRAM revenues increased by more than 12% QoQ to US$1.86 billion. Mobile DRAM revenues have increased to 36% of the supplier’s DRAM sales. This significant bump from the previous quarter was attributed to price stability and added capacity. Samsung used to manufacture more PC and server DRAM than mobile DRAM as the former two types had higher margins. In the first quarter of 2015, however, PC DRAM margins shrank rapidly, making mobile DRAM production more attractive. Samsung is currently mass producing 20nm and 23nm mobile DRAM, and the memory maker is leading the pack when it comes to LPDDR4 production and is the first to launch 6Gb and 8Gb products. In sum, Samsung’s earning power will continue to grow. SK Hynix’s mobile DRAM revenue decreased significantly in the first quarter. The supplier was hit especially hard by seasonality because it does not have a captive market as Samsung does. Currently, SK Hynix’s major product is 25nm LPDDR3 4Gb, with the process technology having a projected life cycle of around a year. Since SK Hynix is behind Samsung on LPDDR4 development, the former will not get as much benefit as the latter from the demand of the next-generation iPhones (which carry 2GB LPDDR4) in the short term. Micron’s mobile memory sales amounted to US$810 million in the first quarter, a 3.6% QoQ decrease. The minor decline in revenues was attributed to the end of peak shipping of iPhone 6 and Samsung’s growing threat as the competing supplier for Apple products. Micron presently has migrated to the 25nm process, but it is behind its competitors on the development of LPDDR4 and eMCP, which is concerning in terms of the supplier’s future growth in mobile memory production. Taiwan-based DRAM Maker Nanya migrates to 30nm process while Winbond’s mobile memory sales grows despite the negative outlook Nanya’s mobile memory revenues in the first quarter reached US$50 million, a 21.6% QoQ decrease. The supplier’s global market share is down to 1.4%. This decline is the result of a sharp reduction of stock up efforts from the clients and cuts made to the mobile DRAM capacity. Though Nanya’s market share is relatively small, it is aggressively developing its mobile DRAM. The memory maker’s 30 nm manufacturing is scheduled to begin in the second half of this year, and mass production of LPDDR3 may also begin around the same time. This will help close the gap between Nanya and the top-tier suppliers. Winbond’s mobile DRAM revenue grew by 7% QoQ, bringing its global market share to 1.0%. Mobile DRAM accounts for 13% of Winbond’s total revenue, and the increase is based on product mix adjustments and technology migration. Currently, the supplier is working on the development of its 46nm process. Winbond’s capacity was fully loaded in the first quarter at 44K wafers per month, and the construction of a new fab is expected to begin this year with the expectation that it will have a capacity of more than 10K wafers per month available next year. How much equipment Winbond decides to buy for the new fab will depend on the market nonetheless. ----- Source: Trendforce
Keysight, FormFactor and CompoundTek to collaborate Keysight, FormFactor and CompoundTek, have formed a joint plan to provide an advanced photonics on-wafer testing solution to include automated alignment, simultaneous optical-optical and optical-electrical device tests.
Wireless Telecom buys Holzworth Instrumentation Wireless Telecom Group Inc. has signed a definitive agreement to acquire Holzworth Instrumentation Inc., a Boulder, Colorado-based provider of specialty phase noise analyzers and signal generators.
NCAB Group acquires Altus-PCB in USA Altus-PCB is a full-service supplier of PCBs based in New Jersey, USA, that has a business model similar to NCAB’s. Tee US company has a high level of technical expertise and sells mainly to original equipment manufacturers (OEMs).
Mycronic's Thomas Stetter looks back at a successful year As the company is moving more and more towards becoming a full solutions provider, business is taking off and the numbers show very much confirms that the Mycronic's strategy is working.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
IBL Löttechnik reviews 2019 IBL Löttechnik GmbH is staying on top of the market thanks to continues R&D investments.
Second install for EFI at Mid America Display Silicon Valley’s EFI will install a second EFI Nozomi C18000 single-pass inkjet, direct-to-board printer later this month to Mid America Display.
Ron Jakeman of Electrolube looks back at a successful 2019 Electrolube has been growing, both in terms of its footprint and financially, for a number of years not; Ron Jakeman details the company's progress.
Etteplan and Scanfil to start strategic cooperation in joint customer projects Engineering company Etteplan and contract manufacturer Scanfil have today agreed to enter a strategic partnership in Finland.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
The lovechild of ACE Production and InterSelect Carlos Bouras of Nordson Select gave us the rundown of the result of the integration and combination of ACE Production and InterSelect GmbH - the new Integra.
American Battery Metals, U.S. lawmakers convene American Battery Metals Corporation has completed a series of meetings with lawmakers and personnel in the Department of Energy and Department of the Interior in Washington, D.C., to discuss issues critical to the domestic battery production and storage industry.
Cogiscan, Critical Mfg. form strategic partnership Quebec, Canada-based Cogiscan and Critical Manufacturing, headquartered in Portugal, have forged a strategic partnership to deliver smart factory solutions for electronics manufacturers.
Collins Aerospace expanding in North Africa Collins Aerospace Systems, a unit of United Technologies Corp., has taken the first step toward the expansion of its existing site in Casablanca, Morocco.
The advantage of Vantage - Garrett Wong tells the tale Nordson Asymtek's Garrett Wong gives us a rundown of the business year and also details the Vantage Advantage
Saki’s Eddie Ichiyama details a very successful business year Eddie ichiyama from Saki gave us an update on how 2019 has been for the company and also shared some details on the recent expansion in the Czech Republic.
The ripple effect of Enrico Krog Iversen while being an active part in creating one of the fastest growing robotics companies in modern time might have been enough for most people, that does not seem to have slowed down a certain Danish entrepreneur.
Yamaha's Ichiro Arimoto on the business year and the company's new ventures Evertiq had the opportunity to talk to Ichiro Arimoto, General Manager of Yamaha Motor Europe, about the business year and the company's new ventures.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
Mycronic, Indium forge strategic partnership Indium Corporation has announced a strategic partnership with Sweden-based Mycronic, to develop no-clean and water soluble solder pastes for jetting applications.
SCHMID delivers PlasmaLine to Hofstetter PCB SCHMID announced it has installed the company’s first PlasmaLine comprising ICP etch & sputter deposition of its Korean JV SCHMID AVACO at Hofstetter PCB AG in Switzerland.
Cobot market to reach USD 9+ billion by 2025 A new report from Tractica is forecasting continued rapid growth for the global collaborative robot (cobot) market over the next few years, reaching revenue of USD 9.7 billion by 2025.
MixComm scores USD 8+ million in series B round New Jersey-based fabless semiconductor company MixComm has secured USD 8.6 million in series B funding led by existing investor, Kairos Ventures.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
SIA elects 2020 leadership The Semiconductor Industry Association (SIA) Board of Directors has elected ON Semiconductor CEO Keith Jackson as its 2020 Chair and Qorvo CEO Robert Bruggeworth as its 2020 Vice Chair.
Si wafer shipments recede for fourth straight quarter Worldwide silicon wafer area shipments slid for the fourth consecutive quarter of 2019, according to the SEMI Silicon Manufacturers Group (SMG) in its most recent quarterly analysis of the industry.
Decline in Q4 DRAM contract prices lessens as buying momentum recovers According to the latest analysis from the DRAMeXchange research division of TrendForce, Q4 DRAM ASP is as of yet undergoing a slight QoQ decline, but this decline has shrunk down to 5%.
Technica forms growth-focused equity fund San Jose-based Technica USA has reached an agreement on an equity investment centered on future growth for the global PCB fab and assembly supplier.Load more news