© pichetw dreamstime.com Analysis | July 18, 2017
2H17 DRAM, NAND ASP growth to cool, but yearly growth strong
Sales of both memory types—DRAM and NAND—are expected to set record highs this year. In both cases, the strong annual upturn in sales is being driven almost entirely by fast-rising average selling prices, writes market analyst IC Insights.
In the case of DRAM, unit shipments are actually forecast to show a decline this year. Moreover, NAND shipments are forecast to increase only 2 percent, providing a small, added boost to the market growth in that segment. Prices for DRAM and NAND first began increasing in the second half of 2016, and continued with quarterly increases through the first half of 2017. With DRAM ASPs surging since the third quarter of 2016, DRAM manufacturers once again stepped up their spending for this segment. However, the majority of this spending is going towards technology advancements and not toward capacity additions. IC Insights believes that essentially all of the spending for flash memory in 2017 will be used for 3D NAND flash memory process technology as opposed to planar flash memory. A big increase in NAND flash capital spending this year is expected from Samsung as it ramps 3D NAND production at its large, new fab in Pyeongtaek, South Korea. Historical precedent in the memory market shows that too much spending usually leads to overcapacity and subsequent pricing weakness. Samsung, SK Hynix, Micron, Intel, Toshiba/SanDisk, and XMC/Yangtze River Storage Technology each plan to significantly ramp up 3D NAND flash capacity over the next couple of years (with additional new Chinese producers possibly entering the market). The likelihood of overshooting 3D NAND flash capacity over the next few years is very high. IC Insights shows the DRAM quarterly ASP growth rate peaked in 4Q16 but continued a strong upward trend through 2Q17. IC Insights forecasts the DRAM ASP to increase (though marginally) into 3Q17 before edging slightly negative in 4Q17, signaling the end of another cyclical upturn. Even though DRAM ASP growth is forecast to slow in the second half of the year, the annual DRAM ASP growth rate is still forecast to be 63 percent, which would be the largest annual rise for DRAM ASPs dating back to 1993 when IC Insights first started tracking this data. The previous record-high annual growth rate for DRAM ASP was 57 percent in 1997. For NAND flash, the 2017 ASP is forecast to increase 33 percent, also a record high gain. (In the year 2000, the predominantly NOR-based flash ASP jumped 52%). ----- More can be found at IC Insights.
iBeam nabs start-up grant for MicroLED technology The New Mexico Economic Development Department announced that iBeam Materials Inc. is a recipient of one of five business start-up grants to science and technology companies.
New and expanded SoCal HQ for Relativity Space Relativity Space has secured a 120,000 sq. ft. space in Long Beach, California, to serve as the company’s business operations headquarters and manufacturing facility of its 3D printed rocket, Terran 1, and Aeon launch engines.
Huawei targets France for first European production plant Huawei says that it will build a new wireless communications product factory in France. The highly automated factory will focus on 4G and 5G equipment, and will primarily manufacture supplies for European customers.
IMI’s 2019 results strained by the weak market environment Integrated Micro-Electronics, Inc. (IMI) achieved revenues of USD 1.3 billion in 2019, a 7% decline versus 2018.
North American PCB industry sales down 5.2% in January Total North American PCB shipments in January 2020 were down 5.2% compared to the same month last year.
Covid-19 forces Italian EMS to shut down plant Italian EMS provider MTA, a designer and manufacturer of electronic and electromechanical components for the automotive industry, has been forced to close its Codogno production plant following regulations set by the Italian Minister of Health.
Ericsson to close European offices amid virus outbreak The Swedish telecom company is shutting down three offices in three different European countries after one of its employees in Croatia tested positive for the novel Coronavirus.
Advanced Energy's manufacturing facility in Penang is operational Advanced Energy Industries expands its footprint with new facility in Penang, Malaysia to serve semiconductor and industrial customers.
FCA revs up support for the Motor City Fiat Chrysler Automobiles has released details on its planned expanded presence in Detroit, including the first new assembly plant within the city limits in almost three decades.
Apple issues revised ‘revenue guidance’ for March Apple has stated they do not expect to meet the previously announced revenue guidance for March quarter due to two factors associated with the COVID-19 global outbreak.
Lucid inks battery partnership with LG Chem Silicon Valley-based EV maker Lucid has finalized a partnership with LG Chem that will supply battery cells for standard versions of the Lucid Air through 2023.
Sono Motors to cooperate with Valoe on solar solutions Finnish technology company, Valoe Oyj, has signed a cooperation agreement with the Munich based Sono Motors GmbH to become a Technology Partner for the integrated solar components of the Sion, a Self-Charging electric car with solar integration.
Incap's 2019 revenues climbed 20% The Finnish EMS provider is entering its fiscal year 2020 on the back of a solid performance during 2019.
IPC survey: COVID-19 major cause of concern In a recent survey of electronics manufacturers and suppliers conducted between February 11-16, results released by IPC yesterday showed overwhelmingly that most “are concerned about the impacts COVID-19 will have on their business operations.”
Upgrades boost output for U.S. appliance maker GE Appliances has completed work on a USD 125 million factory upgrade to its refrigeration plant in Decatur, Alabama, which has included the installation of smart factory 4.0 technology.
TTM Technologies Inc. expands in Wisconsin TTM Technologies Inc. celebrated the grand opening of a new North American advanced technology center in Chippewa Falls.
Panasonic to exit US solar manufacturing Panasonic says it will begin to wind down U.S. production of photovoltaic cells and modules at Gigafactory New York in Buffalo, New York.
Techsil acquires adhesive supplier Glueline Adhesive and sealant supplier Techsil has announced that it has acquired Essex based adhesive stockist and distributor Glueline Ltd.
Neways 2019 turnover up while result is down While the company’s net turnover made positive developments during the business year 2019, Neways’ bottom line shows a sharp drop.
Jabil cuts outlook in wake of virus outbreak EMS provider Jabil expects that the COVID-19 outbreak will have a negative impact on the second quarter of fiscal year 2020, relative to the company's previously set guidance.
Umicore starts construction in Poland The company has held a groundbreaking ceremony for the construction of its new cathode materials production plant in Radzikowice in Nysa in south-western Poland.
Swedish EMS provider expands with Finnish acquisition Swedish EMS provider Inission has signed an agreement to acquire 100% ownership of the Finnish manufacturer HY-Tech Comp Oy (HY-Tech).
Silfab Solar expanding, adding jobs in Washington The Washington State Department of Commerce and Port of Bellingham have announced that Silfab Solar will be expanding its operations in Bellingham.Load more news