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Major U.S. chip maker Qualcomm has finally acquired Holland-based NXP Semiconductors for US$47 billion. As the recent trend of deal-making in the global semiconductor sector continues unabated, this deal will further intensify the competition among major industry participants. According to the global market research firm TrendForce, Qualcomm will encounter new business opportunities and major challenges following its tie-up with NXP.
Numerous major participants in the global semiconductor sector are engaging in deal-making to make themselves larger and more competitive. As a result, different industries within the sector will be controlled by fewer companies in the future.
Global market research firm TrendForce reports the production volume of smartphones worldwide totaled around 350 million units in the third quarter of 2016. This figure represents a sequential quarterly increase of 10.4%, which is a new high for the year.
The sales revenue of DRAM module worldwide for 2015 was around US$7.9 billion, representing a decrease of 10% compared with the 2014 figure, according to the latest revenue ranking of DRAM module makers by DRAMeXchange, a division of TrendForce. The decline in the 2015 revenue was mainly attributed to the falling PC DRAM prices and the shrinking of the DIY market.
The supply shortage that persisted in the NAND Flash market during the third quarter will become more acute in the fourth quarter due to surging demand from clients in the smartphone and SSD industries, says DRAMeXchange, a division of TrendForce. Prices of NAND Flash wafers and memory cards will certainly be on an upswing until the end of 2016, while eMMC, eMCP and SSD products are also going to see their prices go up. Compared with the third quarter, NAND Flash suppliers will enjoy even higher margins and better revenue results in the fourth quarter.
