© wrangler dreamstime.com Analysis | April 20, 2017
Global Server DRAM ASP in 2Q17 to rise over 10% QoQ
DRAMeXchange, a division of TrendForce, reports that demand continues to outpace supply in the server DRAM market. In this first quarter, memory suppliers saw their shipment fulfillment rates dropped for different groups of clients.
The fulfillment rate for long-term agreement (LTA) orders was 80 percent on average, while fulfillment rates for orders from Chinese and Taiwanese ODMs fell to the 60 percent level. Due to the persistent undersupply, DRAMeXchange further projects that the global average sales price (ASP) of server DRAM will increase by more than 10 percent between the first and second quarter. “The product mix changes made by suppliers in the second half of 2016 as the main factor behind the tightening of server DRAM supply,” said Mark Liu, DRAMeXchange analyst. “At the same time, the demand from the downstream has taken off and surpassed DRAM suppliers’ expectations. As server makers expand their purchasing of memory products, server DRAM prices will keep climbing.” Up to now, major DRAM suppliers have been adjusting the pace of their respective technology migrations as to align with the product lifecycles of their mainstream offerings for the server memory market. Samsung and SK Hynix have not significantly shifted the production of their server DRAM chips onto the more advanced processes, which respectively are the 18nm and the 21nm. Both Samsung and SK Hynix have also limited the shipment share of products from the advance process. For this first quarter, just around 30 percent of Samsung’s server DRAM product shipments came from the 18nm process. SK Hynix also had about the same shipment share for its 21nm server DRAM products. Looking ahead, the uncertainty of the supply-demand situation will further push up server DRAM prices in the third quarter. Domestic telecom industry and BAT will increase their take of China’s server shipments to 36 percent this year The Internet’s traffic has grown exponentially in recent years as more services migrated to cloud computing and big data platforms, thus creating enormous challenges in data storage and processing. Traditional data centers lack the equipment and technologies to handle the current density of information that is being transmitted. In the case of China, the three native technology giants Baidu, Alibaba and Tencent – a group also known as “BAT” – have become actively involved in the development of the domestic data center market, including the design and manufacturing of network equipment and server systems. They also work closely with local telecom companies in creating their enhanced and customized operational models for data centers. At the same time, data center-related services in China have matured. Owing to policy support from the government, domestic providers of cloud computing, online storage, IoT services and other combined solutions have made much progress. In the near future, various levels of Chinese government in accordance with the national economic strategy are expected to invest heavily in cloud-based technologies and related emerging industries. Enterprise data centers are being built across the country, and many of these data center building projects contain lucrative bid opportunities from provincial governments. On the whole, China’s data center market is now entering a high-growth period. Similarly, demand for server systems in China is expected to grow significantly in the near term. DRAMeXchange estimates that the demand for server from domestic telecom companies (e.g. China Telecom, China Mobile and China Unicom) will increase by around 30 percent this year in unit volume compared with last year as they continue to work closely with server ODMs. Domestic telecom companies are also projected to capture 5~8% of the total server shipments in the Chinese market during 2017. An even larger source of server demand in China comes from BAT. Together, their server demand for 2017 is expected to grow by 20 percent in unit volume versus 2016. They also will take a huge chunk of the total server shipments in the Chinese market this year – around 30 percent according to DRAMeXchange’s latest estimate. Going forward, demand momentum from China’s telecom industry and BAT will pick up further in the second half of 2017. ----- Read more at Trendforce.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
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.
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.Load more news
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- COVID-19 highlights the gravity of the secondary market for SME
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- China falls far short of its "Made-in-China 2025" goal
- GlobalFoundries to implement ITAR at US manufacturing facility