Business Strategies

Intel’s Losses Amid Others’ Gains

Intel's NSG profits vs the  competitionWhy has Intel’s NVM Solutions Group (NSG), the owner of the company’s NAND flash, SSD, and 3D XPoint businesses, been losing money during a time when all other manufacturers are more profitable than they have been in years?

This is a question that certain investors have put to The Memory Guy for the past year or so, and it deserves some explanation.

This post’s graphic compares Intel’s NSG net profit margins to the margins published by other memory companies.  (Click on it to see the whole chart.)  This isn’t a completely clean comparison since the data for Samsung, SK hynix, and Micron includes DRAM, and recent quarters are missing for Western Digital (SanDisk) and Toshiba since these companies have stopped sharing comparable financials, but it still serves as a relatively clear indication that Intel’s NSG (blue) is losing money while all other companies are quite profitable.

Something seems dreadfully Continue reading

Accelerating New Memory Materials Research

Intermolecular Characterization ChartWith all the new emerging memories that are being developed there must be quite a number of test runs to study exactly how well these new technologies and materials can perform.  If a batch of 300mm wafers must be used for a single test then the cost multiplies, particularly if no other test can be run on that wafer.

Another great difficulty is that most memory manufacturers run their wafers on very high-efficiency and high-volume wafer fabs.  It is perilous and wasteful to interrupt a production process to inject a batch of test wafers.  Most fab managers would rather have a tooth pulled than to change their flow to accept an experimental lot.

What can be done to improve this situation?

Well the folks at Intermolecular, Inc. (IMI) explained to the Memory Guy that they have a solution: They have built a small fab that allows single wafers to be processed with varying parameters across a single wafer.  In this way one wafer can be used to run 36 or more different experiments all at the same time.  This is clearly more economical than having to run the experiment on 36 wafers or, even worse, 36 batches of wafers!  Intermolecular says that, while production fabs are optimized for manufacturing, their fab is optimized for materials understanding.

The firm calls itself an Continue reading

Emerging Memories Today: New Blog Series

Emerging Memory ParadeThere’s never been a more exciting time for emerging memory technologies. New memory types like PCM, MRAM, ReRAM, FRAM, and others have been waiting patiently, sometimes for decades, for an opportunity to make a sizeable markets of their own.  Today it appears that their opportunity is very near.

Some of these memory types are already being manufactured in volume, and the established niches that these chips sell into can provide good revenue.  But the market is poised to experience a very dramatic upturn as advanced logic processing nodes drive sophisticated processors and ASICs to adopt emerging persistent memory technologies.  Meanwhile Intel has started to aggressively promote its new 3D XPoint memory for use as a persistent (nonvolatile) memory layer for advanced computing.  It’s no wonder that SNIA, JEDEC, and other standards bodies, along with the Linux community and major software firms are working hard to implement the necessary standards and ecosystems to support widespread adoption of the persistent nature of these new technologies.

This post introduces a Continue reading

Memory Market Falling, as Predicted

Memory Price & Cost BehaviorIt’s earnings call season, and we have heard of a slowing DRAM market and NAND flash price declines from Micron, SK hynix, Intel, and now Samsung.  DRAM prices have stopped increasing, and that can be viewed as a precursor to a price decline.

Samsung’s 31 October, 2018 3Q18 earnings call vindicated Objective Analysis‘ forecast for a 2H18 downturn in memories that will take the rest of the semiconductor market with it.

Those familiar with our forecast know that for a few years we have been predicting a downturn in the  second half of this year as NAND flash prices fall, followed by a DRAM price collapse.  After the DRAM collapse the rest of the semiconductor market will undergo a downturn.

We’ve been calling for this downturn for some time.  Dan Hutcheson at VLSI Research has been videotaping our forecast every December for the past Continue reading

Why are NAND Flash Fabs so Huge?

NAND Economies of ScaleMany readers have probably wondered why NAND flash fabs are so enormous.  Although DRAM fabs used to be the largest, running around 60,000 wafers per month, NAND flash fabs now put that number to shame, running anywhere from 100,000-300,000 wafers per month.  Why are they so huge?

The reason is that you need to run that many wafers to reach the optimum equipment balance.  The equipment must be balanced or some of it will be sitting idle, and with some tools costing $50 million (immersion scanners) you want to minimize their idle time to the smallest possible number.  I am sure that this is a tough problem, although I have never had to solve it myself.

The most important reason that so much attention is focused on this is that the cost of the wafer depends on the efficiency of the fab.  If you built a $13 billion NAND flash fab that produced 90,000 wafers per month instead of 100,000 wafers per month, then the amount of investment per wafer would be 10% higher.  That can make a significant difference to Continue reading

Making Sense of Intel & Micron’s XPoint Breakup

Micron-Intel 3D XPoint Memory InternalsOn Monday, July 16, Intel and Micron announced the termination of the two companies’ 3D XPoint Memory development efforts.  The companies will complete development of the second-generation product after which the IMFT Lehi, Utah facility will continue to manufacture the product but the two companies will no longer co-develop new versions of the 3D XPoint Memory.

Most readers haven’t been watching this business as carefully as The Memory Guy, and are puzzled by the move.  I will share what I know in an attempt to make the decision a little clearer.

Three years ago in July 2015 the two companies held an event to launch 3D XPoint Memory technology.  This upcoming technology would be 1,000 times faster than flash, and provide 1,000 times the endurance, on a chip that was 10 times as dense as “Standard Memory,” which everyone was to infer was DRAM.  This last implied that the technology would sell for a lower price than DRAM, and that’s the most important way that a technology that’s slower than DRAM can gain acceptance in a Continue reading

How to Worsen a DRAM Shortage

Fuzhou Intermediate People's CourtIn an interesting twist to today’s ongoing DRAM shortage, the Fuzhou Intermediate People’s Court, Fujian Province, China today granted a preliminary injunction to prevent Micron’s Chinese subsidiaries from manufacturing, selling, or importing certain DRAM modules and solid state drives in China.

This injunction, according to a Micron press release, was filed without allowing Micron to present its defense, a process which Micron finds to be: “inconsistent with providing a fair hearing through appropriate legal processes and procedures.”

Micron’s customers in China will find that the DRAM shortage has just become even worse than it already was.  Before today China’s government was concerned enough about the shortage’s rising DRAM prices to have launched a price fixing investigation only one month ago.  One result of today’s decision will be that there will be less DRAM in China, and that will probably cause prices to rise even more.

What will be the impact to Micron?  I find it unlikely that this injunction is likely to change any DRAM maker’s business much during a shortage.  Any lack of Micron DRAM in China is likely to be serviced by Samsung and SK hynix, but since there’s a shortage, these companies will need to reduce their shipments outside of China to satisfy Continue reading

Ron Neale To Share Posts

Ron NealeThe Memory Guy is pleased to begin publishing posts from Ron Neale.  Ron is a specialist in phase-change memory (PCM or PRAM) who has been contributing a lot of analysis of this technology in EE Times.

Ron’s career has centered around phase-change memory.  He was the lead author for the groundbreaking 1970 PCM article in Electronics Magazine, co-authored by Intel’s Gordon Moore (of Moore’s Law fame) introducing the world’s first PCM, a 256-bit device.

Now that the Intel/Micron 3D XPoint Memory has been revealed to use the same technology as Numonyx’ NOR-compatible PCMs, Ron’s analysis of this technology is especially poignant.

Look for posts that feature his keen insight on the technology, its particular challenges, and the ways that PCM is applied to practical problems in advance computing.

Wafer Shortages and DRAM/NAND

Mark Thirsk, Linx ConsultingRecently I have been hearing concerns that an impending wafer shortage might drive today’s DRAM and NAND flash shortages to epic proportions.

The Memory Guy doesn’t pretend to have any understanding of the raw wafer business, so I decided to consult Mark Thirsk, managing partner of Linx Consulting.  Mark has been in this industry for quite a while and has a very good understanding of the ongoing status of the semiconductor materials supply chain.

Mark and I were on a panel together at SEMICON Korea in February, and he presented an interesting chart to compare the costs of different technologies.  I asked him about this chart as well.

Here’s what Mark had to say:

“Our information is that major Continue reading

New Report Details NVDIMM Market

Objective Analysis NVDIMM Report 2017 CoverObjective Analysis has just released a new report covering the nonvolatile dual inline memory module (NVDIMM) market in detail.  This report, Profiting from the NVDIMM Market, explains the What, How, Why, & When of today’s and tomorrow’s NVDIMM products.

My readers know that I have been watching this market for some time, and that I am always perplexed as to whether to post about NVDIMMs in The Memory Guy or in The SSD Guy, since these products straddle the boundary between memory and storage.  This time my solution is to publish posts in both!

The Objective Analysis NVDIMM market model reveals that the market for NVDIMMs is poised to grow at a 105% average annual rate to nearly 12 million units by 2021.  This finding is based on a forecast methodology that has provided many of the most consistently-accurate forecasts in the semiconductor business.  This forecast, and the report itself, were compiled through exhaustive research into the technology and the events leading up to its introduction, vendor and user interviews, and briefings from standards bodies.

This 80-page in-depth analysis examines all leading NVDIMM types and forecasts their unit and revenue shipments through 2021.  Its 42 figures and 14 tables help Continue reading