© 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
Scanfil CEO: ‘Our operations are making good progress’ The last quarter of 2019 was the strongest one for the EMS provider. Scanfil recorded a turnover of EUR 155 million, a growth of EUR 15 million or 10% year-over-year.
Prime Technological Services acquire ITS EMS provider Prime Technological Services LLC has acquired Georgia-based I Technical Services (ITS).
Florida’s Sypris snags BAE Systems contract Sypris Electronics LLC, a subsidiary of Sypris Solutions Inc., has won a contract award from London-based BAE Systems’ Electronic Systems sector.
Into the future, San Diego style IPC APEX EXPO, the North American electronics manufacturing industry’s biggest gig, has left the teenage years behind with this year’s 20th anniversary show held Feb 3-8 in San Diego.
5 semiconductor companies hold 53% of global wafer capacity The world’s top-five wafer capacity leaders each had capacity of more than 1,000,000 wafer starts per month, says IC Insights.
Global DRAM revenue holds steady in 4Q19 The DRAM inventory finally returned to a relatively normal level for most OEMs in 4Q19 after nearly three consecutive quarters of adjustments, says the DRAMeXchange research division of TrendForce.
Mitsubishi Electric completes new satellite production facility Mitsubishi Electric has completed construction of a new facility for the production of satellites at the company’s Kamakura Works in Kamakura, Japan.
ISS-Broadband delivered by Kongsberg Kongsberg equipment is to enable broadband transmission for the International Space Station (ISS) to 'significantly improve communication between the ESA astronauts manning the station and earth.
Mycronic receives order for an SLX mask writer Swedish equipment provider, Mycronic AB, has received an order for the new SLX mask writer from a customer in Asia. The customer already has mask writers from Mycronic.
A new production unit for mirror segments for ELT Safran's new production unit at the company's Saint-Benoît facility near Poitiers in central France will make the primary mirror segments for Europe's Extremely Large Telescope (ELT).
A more sustainable approach to semiconductor manufacturing Reuse; that is the key to driving environmental sustainability in global semiconductor manufacturing, says Steven Zhou, CEO of Moov Technologies.
Teslas German venture comes to a halt following court order A court in Germany has ordered the US electric carmaker to stop clearing the forest at its future location outside Berlin.
Marposs expands with acquisition of Stil Precision metrology equipment supplier Marposs has acquired STIL S.A.S., a French company specializing in research, development, production and sales of optical measurement instruments.
Z-AXIS shares good news from 2019 Electronics design and CMS provider Z-AXIS Inc. released 2019 data showing showing robust revenue growth as well as an expansion to its workforce.
Fluidra reaches a deal to acquire Fabtronics Fluidra, a company within the pool and wellness equipment industry, has acquired Australian electronics manufacturer Fabtronics to strengthen its R&D capabilities and to incorporate complete, efficient and cost-effective electronics design and manufacturing solutions.
Garz & Fricke acquires Keith & Koep Hamburg-based Garz & Fricke Group has acquired Keith & Koep GmbH, located in Wuppertal, Germany. With this move, a new powerhouse for ARM-based embedded technologies in Europe has been formed.
ABB to close Hungarian plant – 1’000 jobs lost The power and automation company will close its production facility in Ozd, in northeastern Hungary, by the end of the year.
AT&S' plant Chongqing II back in operation Austrian PCB manufacturer, AT&S, announces that the Plant II at its Chinese location in Chongqing will resume operations.
Arçelik A.Ş files IP lawsuit against LG Arçelik A.S, owners of the Beko and Grundig brands, filed a lawsuit against LG Electronics and its subsidiaries in Germany and France for patent infringement in relation to the unlicensed implementation of the company’s direct drive technology in LG Electronics’ “6 Motion” washing machines.
Seagate unifying workforce at green Fremont site Data storage and management solutions provider Seagate Technology plc is consolidating its San Francisco Bay Area workforce by relocating the company’s Cupertino operations to its existing sustainable Fremont facility.
Coronavirus afflicts more electronic supply chains With the epidemic arriving at dawn of 5G’s mainstream deployment phase, the coronavirus has the potential to disrupt the progress of the next-generation wireless standard, as the crisis slows or threatens to slow the production of key smartphone components, including displays and semiconductors, according to Omdia.
Solid financial improvements for Kitron EMS provider Kitron could show off solid financial improvements, both for the fourth quarter and full year 2019.
Zollner resumes operations in China The German EMS provider Zollner says that its plant in Taicang is reopened. Work continues under strict safety conditions and not to the full extent.Load more news