EL SEGUNDO, CA — Tight supplies, rising prices and increasing demand for DDR SDRAM caused global DRAM revenue to exceed expectations in the second quarter — and boosted the market share of the Taiwanese suppliers that specialize in the part, according to a preliminary estimate from iSuppli Corp.
Worldwide DRAM revenue rose to $7.5 billion in the second quarter, up 14.3% from $6.6 billion in the first quarter. iSuppli had expected revenue growth of only 4.4%. Many suppliers are phasing out production of DDR in favor of the new mainstream DRAM: DDR2. This constrained supplies of DDR, contributing to an increase in prices. In contrast, prices for DDR2 declined during the quarter as availability increased. The overall impact was a rise in global DRAM prices of 4% compared to the first quarter.
Three months ago iSuppli had predicted a 4% decline for the quarter, which would be closer to a normal decrease in DRAM pricing. Confirming iSuppli’s prediction from three months ago, overall DRAM bit production growth worldwide increased by 10% during the quarter compared to 15% during the same quarter last year. This deceleration in bit production growth provided further support for pricing. Other supply-side factors boosting DRAM pricing included tight availability of DDR2 667 and a shortage of 1Gbit density parts.
“Along with rising prices, tighter supplies and lower production, the DRAM market’s strong performance in the second quarter was fueled by better-than-expected demand,” said Nam Hyung Kim, principal analyst for iSuppli. “PC core-logic chipset suppliers in the second quarter aggressively promoted products that supported DDR, boosting demand for the memory just as DRAM suppliers were phasing out production of the part.”
Due to the rise in DDR prices, the smaller Taiwanese suppliers that are the main suppliers of the part outperformed the tier-one suppliers, according to iSuppli’s preliminary ranking. The three major Taiwanese suppliers, Nanya Technology, Powerchip Semiconductor and ProMOS Technologies, all achieved sales growth of more than 20% sequentially in the second quarter.
Worldwide DRAM revenue rose to $7.5 billion in the second quarter, up 14.3% from $6.6 billion in the first quarter. iSuppli had expected revenue growth of only 4.4%. Many suppliers are phasing out production of DDR in favor of the new mainstream DRAM: DDR2. This constrained supplies of DDR, contributing to an increase in prices. In contrast, prices for DDR2 declined during the quarter as availability increased. The overall impact was a rise in global DRAM prices of 4% compared to the first quarter.
Three months ago iSuppli had predicted a 4% decline for the quarter, which would be closer to a normal decrease in DRAM pricing. Confirming iSuppli’s prediction from three months ago, overall DRAM bit production growth worldwide increased by 10% during the quarter compared to 15% during the same quarter last year. This deceleration in bit production growth provided further support for pricing. Other supply-side factors boosting DRAM pricing included tight availability of DDR2 667 and a shortage of 1Gbit density parts.
“Along with rising prices, tighter supplies and lower production, the DRAM market’s strong performance in the second quarter was fueled by better-than-expected demand,” said Nam Hyung Kim, principal analyst for iSuppli. “PC core-logic chipset suppliers in the second quarter aggressively promoted products that supported DDR, boosting demand for the memory just as DRAM suppliers were phasing out production of the part.”
Due to the rise in DDR prices, the smaller Taiwanese suppliers that are the main suppliers of the part outperformed the tier-one suppliers, according to iSuppli’s preliminary ranking. The three major Taiwanese suppliers, Nanya Technology, Powerchip Semiconductor and ProMOS Technologies, all achieved sales growth of more than 20% sequentially in the second quarter.
Stow, OH – The wafer fab industry's monthly capacity is set to reach a new high next year, increasing 17%, according to analysis firm Strategic Marketing Associates (SMA).
Collectively, the 35 new fabs coming online in 2007 will have the capacity to produce up to the equivalent of 2 million 200-mm wafers. The value of these fabs may reach $56 billion over the next three years.
The expected 17% increase brings with it growth opportunities, as well as the risk of overcapacity, especially in the memory arena, SMA warned.
Up to 60% of the added capacity is expected to be allocated for memory, specifically DRAM and non-volatile flash, which has become ubiquitous in consumer electronics.
FlashPartners, the Toshiba-SanDisk joint venture, may eclipse fab capacity leader Samsung in flash memory, with ambitious plans to bring three 300-mm fabs online by 2008.
Chip foundries are also setting a new record in fab construction, with Taiwan-based TSMC, as well as China-based SMIC and Hua Hong Electronics, planning to bring new 300-mm capacity online next year.
The firm projected equipment sales to near an all-time high. Total capital spending by chip companies is set to grow 14% this year to $47.3 billion, and by 10% next year to $59 billion, just shy of the all-time high of $61.5 billion set in 2000.
Collectively, the 35 new fabs coming online in 2007 will have the capacity to produce up to the equivalent of 2 million 200-mm wafers. The value of these fabs may reach $56 billion over the next three years.
The expected 17% increase brings with it growth opportunities, as well as the risk of overcapacity, especially in the memory arena, SMA warned.
Up to 60% of the added capacity is expected to be allocated for memory, specifically DRAM and non-volatile flash, which has become ubiquitous in consumer electronics.
FlashPartners, the Toshiba-SanDisk joint venture, may eclipse fab capacity leader Samsung in flash memory, with ambitious plans to bring three 300-mm fabs online by 2008.
Chip foundries are also setting a new record in fab construction, with Taiwan-based TSMC, as well as China-based SMIC and Hua Hong Electronics, planning to bring new 300-mm capacity online next year.
The firm projected equipment sales to near an all-time high. Total capital spending by chip companies is set to grow 14% this year to $47.3 billion, and by 10% next year to $59 billion, just shy of the all-time high of $61.5 billion set in 2000.
BANNOCKBURN, IL — According to trade group IPC, the North American rigid PCB book-to-bill ratio for June was at parity at 1.00, while the flexible book-to-bill climbed back to the positive range at 1.01 after a three-month dip below parity.
The combined (rigid and flex) industry book-to-bill ratio in June 2006 was 1.00. The ratios are based on monthly data collected from PCB producers that participate in IPC’s monthly PCB Statistical Program.
Ratios are calculated by dividing the value of orders over the past three months by the value of sales. A ratio over 1.00 suggests expansion.
Rigid PCB shipments are up 12.5% and bookings rose 19.2% year-on-year. Year to date, rigid shipments are up 11.3% and bookings are up 13.9%.
Flex shipments were up 1.7% from June 2005 and up .9% to date. Bookings increased 18.9% YOY, but are down 7.6% YTD. Sequentially, flex shipments and bookings increased 17.4% and 73.8%, respectively.
Rigid PCBs represent an estimated 85% of the current PCB market in North America, according to IPC.
In June, flexible circuit manufacturers surveyed indicated that bare circuits accounted for 65% of their monthly shipment value.
Over 88% of PCB shipments reported were domestically produced.
The combined (rigid and flex) industry book-to-bill ratio in June 2006 was 1.00. The ratios are based on monthly data collected from PCB producers that participate in IPC’s monthly PCB Statistical Program.
Ratios are calculated by dividing the value of orders over the past three months by the value of sales. A ratio over 1.00 suggests expansion.
Rigid PCB shipments are up 12.5% and bookings rose 19.2% year-on-year. Year to date, rigid shipments are up 11.3% and bookings are up 13.9%.
Flex shipments were up 1.7% from June 2005 and up .9% to date. Bookings increased 18.9% YOY, but are down 7.6% YTD. Sequentially, flex shipments and bookings increased 17.4% and 73.8%, respectively.
Rigid PCBs represent an estimated 85% of the current PCB market in North America, according to IPC.
In June, flexible circuit manufacturers surveyed indicated that bare circuits accounted for 65% of their monthly shipment value.
Over 88% of PCB shipments reported were domestically produced.
REDMOND, WA -- Data I/O Corp., a top provider of manual and automated device programming systems, today said its second quarter revenues were up 12% sequentially and 8% from a year ago. The company posted a net loss of $398,000, up from a net loss of
$512,000 in the first quarter of 2006 but down from net income of
$53,000 last year. The company posted sales of $7.2 million for the quarter.
TORONTO -- Celestica Inc.'s second-quarter net loss was $30.3 million on sales of $2.2 billion, the company said today. Earnings dropped from $12.6 million last year. Revenue, while at the high side of previous guidance, slipped 1%, on strong demand for telecom and server gear.
SAN JOSE -- Thieves have stolen hundreds of thousands of dollars in equipment from at least 18 Silicon Valley high-tech firms this year and show no signs of slowing down.
The thieves are targeting chips, flash memory cards and electronic devices, say persons familiar with the crimes.
Police have identified a silver minivan with a skull and crossbones in the back license plate area as a common vehicle in many of the robberies. In many instances, a woman distracts delivery workers by asking for directions.On Wednesday, a delivery truck at Viva Computers in Fremont was robbed of CPUs and hard drives valued at $13,000. Other firms recently targeted have been Bell Microproducts in San Jose, which has been hit several times, and Advanced Micro Devices. Last Friday, Ampro Systems in Fremont was robbed of about $200,000 in flash memory cards.
The San Jose Mercury News quoted an employee at one of the South Bay companies that has been repeatedly robbed as saying, "Our trucks get hit at stoplights in broad daylight. These guys are so smart, armed with the latest communications technology, that this problem continues unabated.''
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