© pichetw dreamstime.com Analysis | December 29, 2015
NAND Flash revenue growth slowed in 3Q/2015
NAND Flash revenue growth slowed in the third quarter of 2015 as prices showed steep decline, according to analyst firm TrendForce.
The latest report from DRAMeXchange, a division of TrendForce, finds that NAND flash prices fell rapidly in the third quarter, resulting in a mere 2.4 percent quarterly increase in the global NAND Flash revenue. Sean Yang, assistant vice president of DRAMeXchange, said demand was uncharacteristically weak in the third quarter and did not adhere to the seasonal pattern. NAND Flash end demand was below expectations due to macroeconomic factor. This resulted in oversupply and sharp price decline in the NAND Flash market, putting heavy pressures on NAND Flash suppliers’ revenue growth and margins. DRAMeXchange expects the suppliers’ revenue situation to remain difficult during the fourth quarter because of the persisting oversupply problem. Samsung Both the OEM system product and the retail memory card markets saw a significant drop in their average selling prices due to weak demand. This had a negative impact on Samsung’s NAND Flash revenue in the third quarter. Compared with the second quarter, the supplier’s bit growth was up 15 percent but its revenue fell by one percent to USD 2.68 billion. The supplier’s operating margin also suffered a quarterly decrease. In terms of product strategy, Samsung’s 3D-NAND Flash SSD and 16nm eMMC/eMCP product lines are ready. The supplier will be focusing on the promotion and sales of high-density SSD and eMMC/eMCP products to extend its lead over its competitors. Toshiba Toshiba’s NAND Flash revenue grew by 10 percent in the third quarter because of several factors. First, Toshiba’s 15nm output increased and exceeded 50% of its total NAND Flash production. At the same time, Toshiba’s strategic clients released their latest smartphones, and this in turn caused the shipments of the supplier’s 15nm TLC Mobile-NAND to pick up. Furthermore, server and PC vendors completed the sampling of Toshiba’s SSD products. As for Toshiba’s technology and production plans, Fab 2 equipment is being moved in and tested. Fab 2 is scheduled to do small batch runs of 3D-NAND Flash in the first quarter of 2016. Fab 5, which mainly produces MLC and TLC chips, will also begin pilot production of 3D-NAND Flash on an upgraded process during next year’s first quarter. SanDisk SanDisk saw a massive 49 percent quarterly increase in NAND Flash sales bit growth in the third quarter, even though its average selling price dropped 22 percent. The growth in bit sales was attributed to stock up demand of embedded products following the market release of new smartphones. The averaging selling cost fell by 24 percent, pushing the supplier’s NAND Flash revenue up by 18 percent quarterly to USD 1.31 billion. The declining average selling cost also helped lifted the supplier’s gross margin from 39 percent in the second quarter to 42 percent in the third. The increase gross margin came after three consecutive quarters of falling figures. Almost 60 percent of SanDisk’s NAND Flash production came from the 15nm process in third quarter. The supplier’s bit output is expected to increase by 40~45 percent in 2015. However, SanDisk’s annual bit output growth for 2016 will be slightly lower than the industry average because the supplier’s 3D-NAND development schedule will interfere with the production. Moreover, SanDisk will not significantly increase its NAND Flash capacity next year. SK Hynix In the third quarter, the average selling price of NAND Flash from SK Hynix fell 15 percent. This quarterly slide was due to weak demand and a rapid increase in the share of TLC chips in the supplier’s total output. Consequently, SK Hynix NAND Flash revenue fell 4.7 percent to USD 927 million, while its bit supply volume jumped by 15 percent. Looking at the supplier’s product mix, SSD and embedded OEM products currently account for nearly 90 percent of total output. Demand has picked up since the supplier’s strategic clients released their new smartphones in the third quarter, and the supplier has also steadily expanded its shipments of TLC chips made on the 16nm process. TLC output is expected to account for 40 percent of the total production by the end of the year. SK Hynix has also managed to get a number of its TLC products verified by the module makers and will be ramping up TLC chip production for various applications (e.g. USB, SSD) in this fourth quarter. Micron Micron continued its product mix adjustment in its fiscal fourth quarter, which was from June to August. For that period, the supplier’s NAND Flash revenue totaled USD 1.18 billion. The supplier’s bit supply volume and average selling price for NAND Flash fell by six percent and one percent respectively compared with the third fiscal quarter (from March to May). Micron’s storage business unit (SBU) also saw a slight quarterly decline in its operating margin. In addition to developing more enterprise and client-SSD product lines, Micron has gotten its TLC products verified by strategic partners in the memory module industry. Mass production and shipments have started in this year’s calendar fourth quarter (from October to December).The share of TLC products in Micron’s total output is expected to reach 20 percent in the first half of next year as well. Looking at technology, Micron is advancing rapidly to 3D-NAND Flash manufacturing. The supplier is also on track in moving in equipment into its new fab in Singapore by next year. The share of 3D-NAND in Micron’s total production will expand quickly and may surpass 30 percent in the second half of 2016. Intel Intel’s third-quarter NAND Flash revenue totaled USD 663 million, down 0.3 percent from the second the quarter. The slight decrease was attributed to strategic clients stocking up earlier in the second quarter and the rapidly declining average selling price. In terms of NAND Flash production strategy, Intel will strengthen its ties with its supply partner Micron and convert its chipset fab in Dalian, China, into a 3D-NAND fab. Intel, which sets its sights on future SSD opportunities in China, has therefore become the second NAND Flash supplier to invest in a wafer fab in the country. ----- More can be found at Trendforce.
Bel acquires CUI Inc. power assets Bel Fuse Inc. has closed on its previously-announced deal with CUI Global for the majority of the power business of its subsidiary, CUI Inc.
Accel Robotics more than quadruples initial funding San Diego-based start-up Accel Robotics has announced a USD 30 million Series A funding round led by SoftBank Group Co.
General Motors, LG Chem partner in Ohio General Motors and LG Chem have announced plans to form a joint, equally-owned company to mass-produce electric vehicle battery cells.
Swissbit opens electronics production facility in Berlin Swissbit has been manufacturing in Germany since 2002 and has now official opened its new electronics production facility in Berlin.
Revenue ranking of global top 10 IC design companies The newest analysis from TrendForce shows that several U.S.-based IC design companies experienced continually expanding losses in 3Q19 revenue because of the ongoing China-U.S. trade war and because Huawei had yet to be removed from the Entity List.
Mycronic receives order for an upgrade of a Prexision system Swedish production equipment specialist, Mycronic AB, has received an order to upgrade a system to a full-scale Prexision 8.
Kurtz Ersa inaugurates new extension buildingin Asia Kurtz Ersa Asia Ltd. celebrated its 15th anniversary in China and at the same time opened its extension building in Zhuhai.
Clover Wireless acquires Teleplan Illinois-based Clover Wireless has acquired Teleplan International N.V., a global electronics supply chain services and solutions provider.
FLIR Systems, Providence Photonics finalize deal Oregon-based FLIR Systems has completed its strategic investment in Providence Photonics, developers of advanced software used to quantify invisible gas emissions using FLIR optical gas imaging (OGI) cameras.
Lucid Motors sees EV facility groundbreaking Lucid Motors has officially begun phase-one construction of its EV manufacturing facility in Arizona, representing an investment of more than USD 300 million.
Precogs’ CEO: ‘If we can’t help you, it won’t cost you’ The business model of Precogs, the company that has created a global marketplace that connects a buyers ERP with component distributors, is quite intriguing; you will only pay out of what the company can save you.
Cre8tek invests in robotics to increase efficiency and quality Danish-Chinese electronics manufacturer, Cre8tek, has recently invested in added automation in the shape of robots; which are currently moving into the company’s production plant in Shenzhen with the aim to increase efficiency and quality.
Global semiconductor sales increase 2.9% MoM in October The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached USD 36.6 billion for the month of October 2019, an increase of 2.9% from the previous month's total of USD 35.6 billion, but down 13.1% compared to the October 2018 total of USD 42.1 billion.
Standex International buys Torotel Inc. Standex International Corporation and Torotel Inc. have reached a definitive agreement for Standex to acquire Torotel for approximately USD 48 million in cash.
SPEA unveils new digs in Chandler, Arizona SPEA, a provider of in-test equipment for electronics, semiconductor, MEMS, and sensor industries, has opened a new office in Chandler, Arizona, in the metropolitan area of Phoenix.
SUSS MicroTec, BRIDG team up on NA applications center SUSS MicroTec has announced a broad collaboration agreement with BRIDG, a Florida not-for-profit microelectronics fabrication facility with 200 mm (8-inch) wafer fab capabilities.
Universal adds software center in Bratislava Universal Instruments has extended its EMEA capabilities with the addition of a Software Center in its Bratislava, Slovakia corporate facility.
Sono Motors launches community funding campaign The German mobility provider Sono Motors launched one of the biggest community funding campaigns in Europe yesterday. The company’s campaign target is to generate EUR 50 million between now and December 30, 2019, with preorders from existing and new supporters.
Filtronic expands hybrid microelectronics manufacturing facility Filtronic, the designer and manufacturer of antennas, says it has invested over USD 1.3 million in new equipment for its manufacturing facility in Sedgefield, UK.
ACM Research aiming for R&D facility in Shanghai ACM Research Inc., provider of single-wafer wet cleaning equipment, has begun the bidding process to acquire land rights in the Shanghai, Lingang region.
DirectMed acquires Medical Systems Technologies San Diego-based DirectMed Parts & Service has acquired Medical Systems Technologies (MST), a specialist in magnetic resonance imaging (MRI) and computed tomography (CT) component level repair and testing.
Gowanda acquires RCD Components New York-based Gowanda Components Group has picked up New Hampshire’s RCD Components, which will be folded into the company’s Magnetics Division.
Eurocircuits biggest investment to date One thing has always been clear for PCB manufacturer Eurocircuits – continues investments have been the key for the company’s success, and investments have been made.Load more news