[ad_1]
After Hitting Huawei, Demand For Mobile DRAM From Competitors Like Xiaomi Increased
Demand for specialty non-server PCs and DRAM is also good … Expectations to improve Samsung Hynix’s earnings
Stock market analysts say the DRAM semiconductor market, which was expected to slow down in the fourth quarter of this year, is showing unexpectedly favorable trends.
Other mobile competitors such as Oppo, Vivo and Xiaomi started buying semiconductors earlier than expected to worry the market where Huawei was not due to the US sanctions against Huawei in China. .
According to the industry on the 1st, the Taiwan market research firm DRAM Exchange announced that the fixed price of DRAM in November remained mostly at the price of the previous month, and was more stable than the initial concern.
Prices for PC DRAMs were the same as in October, and prices for specialty DRAMs, such as consumer (home appliances), increased 1.33% from the previous month.
Only server DRAM, which has a lot of inventory capacity from cloud companies, fell 1.79%, downhill for 5 consecutive months, and the rest of the DRAM showed a good trend.
In particular, the supply of DDR3 products for specialty DRAMs is declining, but demand for televisions, set-top boxes and 5G network equipment, which are showing strong sales, has been strong and the price rebounded in November.
This is different from the initial concern that demand for DRAM will decline as Huawei’s rush pre-order special ends in Q3, and demand drops sharply in Q4 and server manufacturers remain out of inventory until Q4.
The main reason is that, contrary to the possibility that mobile demand will decline due to Huawei’s sanctions, alternative customers have quickly emerged.
To occupy the mobile phone market left by Huawei, other competitors such as China’s Oppo, Vivo and Xiaomi have started to competitively expand mobile semiconductor orders faster than the industry expected.
At the third-quarter conference call at the end of last month, Samsung Electronics announced that “demand from other mobile phone manufacturers in Greater China is increasing in the fourth quarter due to sanctions from Huawei.”
The recent launch of new products from large mobile phone manufacturers such as Apple caused an increase in demand for DRAM.
Meritz Securities Analyst Kim Sun-woo said: “In Q4, DRAM is mostly mobile and actual demand and pre-buy demand are strong, which exceeded our expectations.” It is an encouraging phenomenon. “
Meritz Securities predicts Samsung Electronics’ bitwise DRAM shipments will grow 10% QoQ and SK Hynix 7% QoQ.
Consequently, there are some observations that the semiconductor performance of domestic companies in the fourth quarter will be relatively good.
Although the price of DRAM as the use of servers is lower than in Q3, it is possible to protect profits to some extent due to the increase in sales of mobile devices.
Demand for server DRAM is expected to rise again from the beginning of next year after hitting a low in the fourth quarter of this year.
In the second half of the year, as DRAM manufacturers such as Samsung Electronics switched to mobile devices, a large part of their server DRAM production capacity, which is already in stock, is rapidly depleting the inventory of finished products from Server DRAM.
As a result, the industry predicts that server DRAM prices will skyrocket next year.
In the market, the observation that the DRAM market will recreate the super semiconductor boom that appeared in 2017-2018 from next year to 2022 predominates.
KB Securities analyst Gowoon Hwang said: “Next year DRAM demand growth is expected to be late 10%, but the supply growth rate (from manufacturers) will not reach this level, and DRAM prices will increase from the end of the first quarter of next year and the supercycle will begin. ” However, NAND predicts that the oversupply trend will continue due to Samsung Electronics’ market share expansion strategy.
/ yunhap news
