Driven by such factors as the continued development of autonomous driving technologies and the build-out of 5G infrastructure, the demand for automotive memories will undergo a rapid growth going forward, according to TrendForce’s latest investigations. Take Tesla, which is the automotive industry leader in the application of autonomous vehicle technologies, as an example. Tesla has adopted GDDR5 DRAM products from the Model S and X onward because it has also adopted Nvidia’s solutions for CPU and GPU. The GDDR5 series had the highest bandwidth at the time to complement these processors. The DRAM content has therefore reached at least 8GB for vehicles across all model series under Tesla. The Model 3 is further equipped with 14GB of DRAM, and the next-generation of Tesla vehicles will have 20GB. If content per box is used as a reference for comparison, then Tesla far surpasses manufacturers of PCs and smartphones in DRAM consumption. TrendForce forecasts that the average DRAM content of cars will continue to grow in the next three years, with a CAGR of more than 30% for the period.
In compliance with the local policy, Samsung’s Austin-based foundry Line S2 partially suspended operation on Tuesday, Feb 16 due to the winter storm affecting Texas. According to TrendForce’s investigation of the event, as the city’s public utility Austin Energy was able to warn of an impending power blackout ahead of time, the partial shutdown of the plant was not accidental but planned in advance. TrendForce’s data show that the monthly 12-inch capacity of Line S2 accounts for nearly 5% of the global total. While the winter storm is estimated to impair about 1-2% of the global 12-inch wafer foundry capacity, the actual duration of the impact will still depend on the region’s temperature. Assuming that Austin will gradually warm up on Friday, Feb 19, and a phased restoration of power will take place at the fab, TrendForce now expects Line S2 to return to full operation after at least one week.
NAND Flash demand continues to rise as strong sales of notebook (laptop) computers spur PC OEMs to place additional orders for client SSDs, according to TrendForce’s latest investigations. Also, the supply-side inventory for NAND Flash memory has already fallen considerably due to the aggressive stock-up activities of some smartphone brands. With customers in the data center segment expected to ramp up procurement in 2Q21, NAND Flash suppliers have decided to scale back the supply of NAND Flash wafers. Compared with other product categories, wafers have a lower gross margin. As a result of these factors, the decline in contract prices of wafers has been easing over the past two months (i.e., from December of last year to January of this year).
Not only did automotive market take a downward turn starting in 2018, but the severe impact of the COVID-19 pandemic in 2020 also led to noticeably insufficient procurement activities from major automotive module suppliers, according to TrendForce’s latest investigations. However, as the automotive market is currently set to make a recovery, TrendForce expects yearly vehicle sales to increase from 77 million units in 2020 to 84 million units in 2021. At the same time, the rising popularity of autonomous, connected, and electric vehicles is likely to lead to a massive consumption of various semiconductor components. Even so, since most manufacturers in the automotive supply chain currently possess a relatively low inventory, due to their sluggish procurement activities last year in light of weak demand, the discrepancies in the inventory levels of various automotive components, along with the resultant manufacturing bottleneck, have substantially impaired automakers’ capacity utilization rates and, subsequently, vehicle shipments.
Intel has outsourced the production of about 15-20% of its non-CPU chips, with most of the wafer starts for these products assigned to TSMC and UMC, according to TrendForce’s latest investigations. While the company is planning to kick off mass production of Core i3 CPUs at TSMC’s 5nm node in 2H21, Intel’s mid-range and high-end CPUs are projected to enter mass production using TSMC’s 3nm node in 2H22.