Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Manufacturing/Packaging
?
?
Manufacturing/Packaging??

DRAM price drop reshuffles 1H07 chip rankings

Posted: 02 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:chip rankings? semiconductor market? DRAM price drop?

Although not much has changed among the top 10 semiconductor suppliers in 1H 2007 compared to the 2006 rankings, IC Insights noted significant movements in the next 10 that could be credited to the recent collapse in DRAM prices.

The biggest change was seen in Freescale Semiconductor (1H 2007 sales $2.6 billion) which, feeling the pain of its biggest customer, Motorola, dropped from being the 9th largest semiconductor supplier in 2006 to the 16th in 1H 2007. Unfortunately for Freescale, IC Insights notes, Motorola has gone from holding a 23 percent share of cellphone unit shipments in Q2 2006 (51.9 million) to a 14 percent share in Q2 2007 (35.5 million).

Qualcomm rebounds
The biggest climb went to Qualcomm ($2.62 billion), which gained four positions to 13th in 1H 2007. The company was only $17 million behind Infineon ($2.64 billion) that took the 12th spot.

IC Insight estimates that despite Qualcomm's legal debacles, it is on track to register a full-year semiconductor sales increase of 25 percent. The firm however, still warns of an important question mark for the company going into the 2H 2007 due to its legal issues with Broadcom, which did not appear in IC Insights' top 20.

NXP Semiconductor ($3 billion) has seen "steady if unspectacular performance" that has seen it move into the top 10 in 1H 2007 after being ranked 11th in 2006, while STMicroelectronics ($4.7 billion) dipped one spot to 4th, with Toshiba ($5.7 billion) climbing up one spot. The other major European player, Qimonda ($2.3 billion), fell three positions in the rankings, hurt by the DRAM wars.

Not surprisingly, Intel ($15.9 billion), Samsung ($9.2 billion) and TI ($6.3 billion) retained the top three positions over the period. The biggest foundry in the list is TSMC ($4.2 billion), placed 7th in 1H 2007, down one spot from the position it held in 2006. This is despite that the Taiwan group recorded the best q-on-q sales increase in 1H (17 percent) of the top 20 suppliers and raised its capacity utilization rate to over 94 percent in Q2 (up from 83 percent in Q1).

Spurred by increasing internal transfers for its PS3 game machines, Sony ($3.3 billion) moved up one spot in the top 10 ranking and currently resides in 9th place.

Although dropping two ranks to 15th place, AMD ($2.6 billion) saw sales in Q2 increase 12 percent over Q1. As part of its continuing MPU market share battle with Intel, AMD is expected to announce a major manufacturing/foundry deal in 2H 2007, IC Insights said.

DRAM price drop
The DRAM price collapse and competitive flash memory market in 1H are evident in the extremely poor Q2 results of many of the major memory suppliers. Toshiba, Hynix ($4.6 billion), Qimonda and Elpida ($2.1 billion) were especially hard hit, each registering a Q2/Q1 sales drop of greater than 20 percent.

IC Insights noted that all of these companies are expecting a rebound in their sales 2H, with Toshiba planning on a 20 percent increase in its sales in Q3. Despite the Q2 DRAM pricing weakness, Hynix moved from 7th to 6th place in the rankings while another big DRAM supplier, Elpida, gained four positions, rising from 23rd in 2006 to 19th in 1H.

IC Insights expects to see pricing stability return to the DRAM and flash memory markets in 2H, surging IC demand for high-end cellphones, and a noticeable seasonal rebound in overall IC demand beginning in September.

Together, these three factors, in addition to the very tight grouping of the six companies ranked from 12th to 16th (where there was only a $38-million difference in sales between all five in 1H), are likely to cause significant changes in the top 20 semiconductor ranking in 2H, the firm forecasted.

- John Walko
EE Times Europe




Article Comments - DRAM price drop reshuffles 1H07 chip...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top