The SIA yesterday released the WSTS semiconductor sales data for September. Monthly revenues reached a record $27 billion driving third-quarter revenues to their own record of $81 billion. This was the seventh straight month of semiconductor growth, the first such run-up since 2010.
This quote, by SIA CEO Brian Toohey really caught The Memory Guy’s eye: “Sales of memory products have increased sharply compared to last year and continue to be a major driver of industry growth.”
A lot has been happening to drive this increase in memory revenues: The recent SK hynix fire increased DRAM prices, but Continue reading “SIA: Memories Drive Record Semi Revenues”
There are some who still believe that Toshiba made good on its announcement to cut NAND flash production by 30%. Let’s take a close look to see if that really happened.
Readers may recall that Toshiba stated last July that it would immediately cut NAND flash production by 30%. At the time NAND was selling below cost for spot prices as low as 31 cents/GB.
The Memory Guy questioned both the wisdom of the move and its authenticity in a blog post at that time, since this level of cut would reduce Toshiba’s market share while increasing its Continue reading “A Retrospect of Toshiba’s NAND Production Cut”
There’s been a lot of talk recently about increasing DRAM prices. Although this trend has been ongoing since late November (see chart) it has only recently garnered the attention of the press.
What is going on, and how is it likely to play out? The prices in the chart represent the lowest spot market prices reported by market tracker InSpectrum for the past year. These prices typically remain below contract prices as long as there is an oversupply, and stay above contract prices during a shortage.
According to InSpectrum’s figures, today’s lowest spot market DRAM prices are about double Continue reading “DRAM Prices on the Rise”
DRAM manufacturers often refer to “The Windows Bump” – a phenomenon that is believed to occur after every release of a new version of the Windows operating system. According to this theory DRAM demand increases for a period following an introduction.
An example: in a recent article Kingston VP Scott Chen said that an increase in sales for Windows 8 might help raise DRAM demand, leading to more stable prices.
Demand is expected to pick up on the upcoming launch of Windows 8 tablets and Ultrabook PCs later in the second half of 2012.
Does the Windows Bump really exist? The Memory Guy thought Continue reading “Does the ‘Windows Bump’ Really Exist?”
Last January at the Storage Visions Conference in Las Vegas (held every year just prior to CES) I asked the audience what they would do when NAND flash reached a price of 35¢ per gigabyte. My projection (the dotted red line on the chart at left) was that prices would reach that level by the end of the year.
My audience was shocked to hear such a low price!
Price declines open up new markets. It was time to think creatively, I said, because that’s where pricing would be by the end of 2012.
Well, I was wrong – according to Continue reading “NAND Flash at 35 Cents per Gigabyte”
It seems that DRAM makers are still unaware of the impact NAND flash will have on DRAM revenues. Even though many are paying a lot of attention to the impact of the Tablet PC on Notebook PC shipments, few understand that even a healthy notebook market will start to place a decreasing focus on the system DRAM in the near future.
The reason why is simple, and it’s explained in great detail in a report: How PC NAND will Undermine DRAM. In a nutshell, once a basic minimum DRAM requirement has been met, NAND flash yields a greater performance return per dollar than does DRAM. This is illustrated in the graphic to the left.
Forget about the fact that NAND flash is nonvolatile, and that it offers Continue reading “Why DRAM Bit Growth will Suffer”
Over lunch today I had a conversation with an alum of McKinsey Consulting who remarked that the DRAM business behaved in a way that was similar to the McKinsey Steel Model. For those unfamiliar with this model I found a slideshow HERE that refers to it a good deal. (So far I have not found a tutorial on the model itself, but if anyone knows were to find it The Memory Guy would highly appreciate hearing about it.)
One interesting thing is that this particular McKinsey alum was not the first to point this out to me. About 15 years ago a family friend/McKinsey alum told me exactly the same thing. It seems that the economics of the DRAM business have changed little over the past 15 years, and the McKinsey steel model applies to DRAMs just as well now as it did then.
In a nutshell, the model posits that the market price for Continue reading “Why DRAMs are Like Steel”
The Memory Guy was a little surprised to see the advertisement in this post’s graphic. It was from an April 8 newspaper ad for Fry’s Electronics.
It’s a little early to see NAND selling for this little: The original price of $21.99 for a 32GB USB flash drive comes to $0.69/GB, and the price after the rebate of $16.99 means that the price per gigabyte of the flash is only $0.53!
At the time the lowest spot market pricing for MLC flash on the InSpectrum spot price website was $0.53, and $0.47 for TLC. According to DRAMeXchange MLC is selling for as little as $0.48.
That’s not a lot of margin for Patriot or Fry’s when you add in the cost of t Continue reading “How Cheap is Flash?”
The annual International Solid State Circuits Conference (ISSCC) is a gathering in which the brightest minds in semiconductors come to meet and share the results of their recent research and development efforts. This year the four keynotes at the opening plenary centered on a “Green” outlook, through Storage, Control, Computing, and Energy.
Naturally, as “The Memory Guy,” I focused all of my attention upon the storage keynote, given by SanDisk’s recently-retired CEO Eli Harari. Some of the more interesting points I came away with were: Continue reading “Harari Delivers Inspiring Keynote at ISSCC”
2012 is likely to be a year in which the DRAM market consolidates a little bit more.
- At its peak in the late 1980s the DRAM market sported 23 suppliers.
- Today there are 6 suppliers of any note: Samsung, Hynix, Micron, Elpida, Nanya, and Powerchip
- The already-depressed market is only going to worsen in 2012. Capital spending in 2010 is seeing to that. Although many believe that prices cannot get any lower, that is exactly what they will do in 2012. Continue reading “DRAM Consolidation in 2012?”