The stronger-than-expected 4Q19 efficiency from the demand facet helped enhance provider stock again to regular ranges. In response, NAND suppliers had been in a position to cut back their allocations to the wafer market and as an alternative concentrate on transport merchandise with comparatively increased margins.
In 1Q20, the COVID-19 outbreak could have an effect on the patron electronics provide chain, together with smartphones and NBs; subsequently, whole quarterly bit cargo is projected to probably publish a minor decline or flat development. Even so, this can be offset by the massive improve in contract costs, so NAND flash income is predicted to at the least keep the identical degree as 4Q19.
Samsung
Owing to the rising demand from information middle corporations in 4Q19, the demand for Samsung’s SSDs far exceeded its provide; as such, Samsung’s bit cargo elevated by nearly 10% QoQ. On the opposite hand, the corporate additionally posted a rise in ASP due to the rise in contract costs and the discount of NAND flash provide within the channel markets. With the simultaneous improve of ASP and cargo, Samsung’s 4Q19 NAND flash income reached $4.451 billion, an 11.6% improve QoQ.
In phrases of capability planning, Samsung is constant to lower the planar NAND manufacturing capability at Line 12. Its newly expanded second semiconductor plant in Xi’an is working on schedule and with out manufacturing delays for now regardless of potential points in enlargement schedule as a result of COVID-19 outbreak.
SK Hynix
Owing to rising calls for within the cell storage and information middle markets, SK Hynix’s bit cargo grew by 10% QoQ in 4Q19. However, the rise in SK Hynix’s product storage density offset the rise in contract costs and resulted in a flat ASP. SK Hynix’s NAND flash income reached $1.207 billion, a 5.4% improve QoQ.
In phrases of capability planning, SK Hynix’s cutbacks in planar NAND capability and the corresponding addition in 3D NAND capability are anticipated to lead to a decrease year-end manufacturing capability in comparison with the beginning of 2020. In phrases of structure, 128L merchandise are anticipated to enter mass manufacturing in 1Q20. SK Hynix can be planning to launch QLC merchandise this yr, however it’s going to take longer to see consumer adoption of QLC SSDs, since SK Hynix’s product combine remains to be primarily focused on the cell market.
Kioxia
Kioxia’s bit cargo elevated by nearly 10% QoQ because of its capability restoration after the Yokkaichi energy outage and to rising calls for for information middle and PC SSDs. Its ASP additionally noticed a near-5% improve, because of will increase in contract costs attributable to product shortages. In phrases of financials, the facility outage affected solely 3Q19 operations, with none changes to 4Q19 efficiency; Kioxia’s income reached $2.341 billion, a 5.1% improve QoQ.
In phrases of capability enlargement, the corporate’s Iwate-based K1 fab will start operations in 1H20 and produce 96L/112L merchandise. The added manufacturing capability will probably be used to compensate for capability losses from elevating the variety of cell layers in Kioxia’s Yokkaichi web site. Therefore, whole wafer begins will stay unchanged.
Western Digital
Owing to the demand positioned by Apple’s new iPhones and the surge in information middle SSD demand, WD’s 4Q19 bit cargo elevated by 24% QoQ. However, the corporate’s ASP dropped by about 8% QoQ due to its higher-density product combine. WD’s 4Q19 NAND flash income reached $1.838 billion, a 12.6% improve QoQ.
In phrases of manufacturing capability, WD is constant to put money into its Iwate-based K1 fab. But the first operate of the added capability from K1 is supposed to offset capability loss from the Yokkaichi fab’s course of…
