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keyword:Ken Kuo14 result(s)

Press Releases
TrendForce: SK Hynix’s Wuxi Fab to Recover Fully from Fire Damage by Mid-January 2014

2013/12/12

Semiconductors

According to DRAMeXchange, a division of global research firm TrendForce, damages from the September 4 fire at SK Hynix’s DRAM fabrication plant in Wuxi, China caused a month-long cease in production, and global DRAM supply decreased by 10% in one single month Therefore, commodity DRAM price trend, initially projected to fall in the second half of the year, has risen by nearly 20% since the fire Average contract price for 4GB DRAM reached a high of US$33 in the second half of November However, SK Hynix placed top priority on resuming operations at the Wuxi fab, immediately sending in hundreds of experts to begin the recovery process and working round the clock to decontaminate the clean room Shortly after the incident, the memory makers replaced some of the fire-damaged equipment with machinery from its M11 fab, and newly purchased equipment has recently been moved into the Wuxi fab Currently, SK Hynix is on track for a full recovery by mid-January TrendForce provides the following update with the latest details regarding the recovery of the Wuxi fab: 1 Capacity at the Wuxi fab in October and November was 30K and 70K wafers per month, respectively A target capacity of 100K is set for December, and the plant is expected to return to fully loaded 130K wafers per month in January 2014 2 SK Hynix began moving newly purchased equipment into the Wuxi fab in December, and the memory maker has negotiated with vendors to have the new devices installed as quickly as possible The installation, which normally takes 4 to 6 weeks, is expected to be finished in 3 weeks 3 Once the Wuxi fab’s capacity returns to 130K wafers per month, production at SK Hynix’s plant in Korea will return to normal levels – DRAM capacity at the M10 fab will go back to 130K wafers per month, M12 capacity will be transferred back to the manufacture of NAND products, and the 50K wafers per month decrease at the M11 fab will be returned to NAND production as well 4 Worth noting, as SK Hynix did not completely rebuild the Wuxi fab’s clean room despite contamination from the fire and the power outage, whether production yield rates will return to pre-fire levels remains to be seen SK Hynix’s supply to PC OEMs began showing signs of shortage in November 5 As TrendForce previously estimated, the recovery will take 3 to 6 months If capacity is fully restored by mid-January, output from the Wuxi fab will return to normal levels in early March, during the traditional slow season Thus, DRAM market prices are expected to fall in the end of 1Q14, and TrendForce projects DDR3 4GB price will drop to a low of US$22~24 next year

Press Releases
TrendForce: DRAM Industry Outlook Positive for 2014, Annual Sales Growth Likely to Exceed 10%

2013/12/05

Semiconductors

According to DRAMeXchange, a research division of TrendForce, 2013 has been a critical year for the DRAM industry Benefiting from the rising smartphone and tablet sales, the first tier DRAM manufacturers gradually shifted their attention to Mobile DRAM, a move which caused the eventual decline in PC DRAM production; In the periods following the fire accident at SK Hynix's Wuxi plant, 4GB module contract prices rose from US$17 to US$33, and gave DRAM manufacturers greater room for profit In the periods ahead, both the structural changes within the industry and the market's newly formed oligopoly are anticipated to pave the way for new opportunities TrendForce expects the DRAM industry to show the following five trends in 2014: 1、2014 DRAM Revenues to Rise by 12%, Show Growth for Second Consecutive Year since Financial Crisis Due to the transformation of the DRAM industry into an oligopoly, the exit of Taiwanese DRAM manufacturers, and the effects of SK Hynix's fire accident in 2H13, DRAM revenue is estimated to grow by 325% YoY to US$352 billion in 2013 Looking at 2014, as the difficulties associated with the 20nm migration process increases, the industry bit supply growth is expected to slow down ASP, meanwhile, is anticipated to decline on a gradual basis as manufacturing costs improve With DRAM manufacturers not actively seeking to migrate to new manufacturing technologies and the focal point of their strategies shifting to making product mixes more adjustable, TrendForce believes next year's DRAM market value will rise by 12% YoY to US$ 395 billion This is expected to be the year during which DRAM manufacturers show the most disciplined behavior on the production end since the financial turmoil in 2009 2、Industry to Become More Profitability Stable in 2014 following Micron's Official Acquisition of Elpida and Market’s Transformation into Oligopoly  After officially acquiring Elpida in August 2013, the scale of the new Micron group's revenue has reached close to that of SK Hynix Together, SK Hynix, Samsung and Micron account for roughly 90% market share of the DRAM industry, a sign that the market has officially become an oligopoly As each of the three major DRAM manufacturers in the industry possesses its own NAND Flash manufacturing technology and has flexible room for adjusting product mix, the DRAM market’s price movements are expected to remain stable, and the profitability trend is anticipated to continue into 2014  3、Mobile DRAM to Officially Become Mainstream as Proportion of PC DRAM Declines Due in part to the rising sales of smartphones and tablets, an increasing number of DRAM manufacturers have entered the Mobile DRAM market and are gradually decreasing the amount of PC DRAM produced In 2014, TrendForce projects Mobile DRAM will account for nearly 36% of the DRAM market in the output bases and become the new mainstream product, whereas PC DRAM’s market share is only expected to be 30% Looking at the specific Mobile DRAM product lines, the proportion of LPDDR3 is currently expected to grow at a more rapid pace in the smartphones and tablets adoption In addition to the said mobile devices, LPDDR3 is expected to also exert considerable impact on the Ultralike market thanks to its ability to save more power than traditional DDR3 and allow for longer hardware operating times Taking into account the overall momentum on the demand side, TrendForce believes the supplies of LPDDR3 will officially surpass that of LPDDR2 in 2H14 as it becomes a mainstream product within the industry 4、Use of 2Xnm Manufacturing Process to Rise in 2014, Design Difficulties to Affect Migration Progress In 2H13, DRAM manufacturers have encountered various difficulties while trying to migrate to 2Xnm technology Given the physical limitations, even companies such as Samsung and SK Hynix are having problems improving their production yield rate and volumes As the purchase of EUV equipments would be necessary for implementing the 25nm-and-under processes, the amount of financial resources spent will be noticeably greater than when the immersion scanners were used Due to the aforementioned limitations, mass production is unlikely to be achieved with the latest EUV developments, and the exact schedules for when DRAM manufacturers will transition to the below 25nm process remain uncertain TrendForce estimates that the DRAM manufacturers will still mainly use 2Xnm technology in 2014, but believes that the migration progress could be halted by design-related obstacles 5、DDR4 to be Introduced in 2H14 and Used in Server DRAM First As the dynamics on the demand side changes and the numbers of portable devices increase, the boundaries among memory components have become increasingly less clear compared to the previous months Mobile DRAM is now being used in the Notebook market, for instance, whereas low cost tablet manufacturers are beginning to contemplate using PC DRAM due to cost considerations For Server DRAM, an increasing amount of emphasis is placed on not just retaining stability, but also maintaining speed and low power consumption According to the specs released from JEDEC, the voltage of DDR4 will likely only be 12V, while its speed could reach up to as high as 3200 Mhz First tier DRAM manufacturers are expected to begin mass producing DDR4 in 2014, but will only apply the component to Server DRAM in the initial stages The product is expected to be introduced to the PC market in the later periods, and may replace DDR3 as the market mainstream in 2015     

Press Releases
TrendForce: Impact from SK Hynix’s Fire Incident Continues, Supplies of Graphics Memory also Affected

2013/09/27

Semiconductors

According to DRAMeXchange, a research division of TrendForce, the fire accident experienced by SK Hynix's Wuxi plant has led to a sudden surge in market demand The spot market prices for mainstream PC DRAM 2Gb chips have soared by a whopping 36% since the day of the fire (the calculation is based on the chip's agreed price of $US 218 on 9/24) A growth of at least 10%, it is worth noting, is also expected for the soon-to-be-announced September contract prices Given that SK Hynix was originally the supplier with the highest market share in the graphics memory market (leading both Samsung and Micron), a major shortage in graphics DRAM (for instance, DDR3x16, GDDR3, and GDDR5) has inevitably occurred The Taiwanese companies with noticeable, though much lower, shares in this market include Nanya and Winbond Graphic memories have, since the very beginning, belonged to a niche market, with price movements that generally correlate strongly with those of PC DRAM Given that their supplies had traditionally always remained steady, a habit has never really been developed on the part of many manufacturers to maintain a "safety" inventory level for their graphics-based memory products In the periods following the Wuxi plant fire accident as well as the heightened uncertainty in the supply side, SK Hynix's ability to meet its supply schedules has clearly become restricted This has immediately caused the market prices of graphics memory to fluctuate and, later, prompted relevant manufacturers with no more than one month's worth of inventory to scout for other supply sources (some of these graphic chip makers include notable companies such as nVIDIA and AMD) According to TrendForce, the price for the most popular memory product (DDR3 4Gb 256Mx16 1866/2133MHz) has already managed to rise by 20% since the 9/4 fire accident to approximately US$ 395 It would not be unreasonable, in the following periods, to expect the said price growth to eventually surpass that of PC DRAM With regard to the high end GDDR5 2Gb chips, given that the number of suppliers are getting increasingly lower, the official prices have exceeded US$ 38 TrendForce believes SK Hynix's fire incident will impact the entire DRAM industry significantly Other than the prices for PC DRAM (which has been soaring ever since the fire accident) and the supplies of graphics memory components, the prices of products such as server DRAM and specialty DRAM are also likely to be affected Sources with familiar knowledge of semiconductor plants have already indicated that the recovery period for the Wuxi plant would take as long as three months to half a year Thus, from 4Q13 to 1Q14, the market supplies are expected to remain tight

Press Releases
TrendForce:Major Fire Damages Wear Down SK Hynix’s Wafer Plant, Up to 60K Wafers May be Affected

2013/09/13

Semiconductors

According to DRAMeXchange, a research division of TrendForce, the fire accident experienced by SK Hynix's Wuxi Plant on September 4 is now revealed to have originated from its Chemical Vapor Deposition (CVD) machinery Other than the severely burned down equipments, the fire, heavy smoke, and power shortages are known to have also contributed to the direct contamination of the clean room and the notably damaged wafer production lines Luckily, SK Hynix's Wuxi Plant is based on a special "Gemini" architecture, one which enables the clean room and other important facilities to operate independently Under such a design, even when a major accident hits an area, a plant would still be able to maintain at least 50 percent of its total production capacity While SK Hynix is believed to have preserved half of its Wuxi Plant production, a number of its important facility regions are reportedly still heavily worn down from the smoke The date for when the final rebuilding procedures will take place, as such, remains highly uncertain With the fire originating from within the clean room, the difficulty of recovering the affected half of the capacity in the short term—assuming both the equipment and clean rooms were heavily damaged—are also relatively high Sources with close knowledge of semiconductor equipments have so far indicated that the recovery process could take as long as three months to half a year to complete To facilitate the entire process, SK Hynix has sent up to hundreds of professionals and engineers to visit the accident site and to assess the situation more carefully Once the damages to the Wuxi Plant have been clarified, the DRAM industry is projected to be in for a series of major challenges Affected Period May Last At Least Two Months, Samsung and Micron to Benefit from Situation The fire damages experienced by the Wuxi plant's WIP and the inconveniences caused by the power loss and contamination are expected to lead to a number of problems in the short term Even if production temporarily resumes, the implementation of various of the necessary clean up procedures, the close examination of the clean room, the re-inspection of the machineries, and the reconfiguration of various manufacturing settings are all expected to restrict the total number of wafers produced The WIP reconfiguration and manufacturing delays, in particular, will likely impact at least two months’—or roughly 260K’s—worth of wafer production With PC DRAM appearing to be the most affected product line from the fire, the DRAM spot prices are unquestionably also going to be affected Looking at the pricing market, the spot prices have up to this point managed to rise by an estimated higher than 20% The module houses and vendors in the spot market have all started to supply products in small quantities, and, following the news of a possible price surge, are awaiting further development Looking over to the contract market, the PC-OEMs have sent a number of personnel over to both SK Hynix's head quarters and the Wuxi plant in order to clarify the full extent of the fire damages Some of the OEMs are even seeking help from first tier module houses and Taiwanese DRAM manufacturers to ensure their future supply can be secured In the event that proper action is not taken, a tightening of the inventory could happen as soon as Q4 of this year A price surge in the DRAM market, additionally, could also become inevitable TrendForce believes Samsung and Micron will be the biggest beneficiaries of the current situation with SK Hynix, and that the growth and decline of the three major DRAM manufacturers will be considerably affected in the periods to come  

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