Input 2021.02.10 15:04
World’s No. 1 and 2 Samsung Electronics, SK Hynix expected to benefit
Mobile, display semiconductor growth rate is rapid
Samsung Electronics M&A targets are also getting more attention
According to the industry on the 10th, prices have risen in all areas of DRAM this year. In the case of server DRAM, the price increased by 3 to 5% from the previous month, and it is analyzed that this trend has been made as North American data center companies, which are the biggest players in this market, are forecast to increase the purchase rate in the future.
Taiwanese market research firm DRAM Exchange predicted that this year’s server DRAM price will increase by 35-40% compared to the previous year. Quarterly, 1Q 2021 3~8%, 2Q 8~13%, 3Q 10~15%, 4Q 5~10%. Kim Kyung-min, a researcher at Hana Financial Investment, said, “The price of DRAM for server, along with other DRAMs, has a profound effect on the performance of Samsung Electronics and SK Hynix.”
It is also observed that the price of DRAM for PC will increase by 4.8~5.3% compared to the previous one. In particular, in the case of DDR4 8Gb, which has a small capacity, the fixed transaction price has increased by 0.9% over the past week. It is known that spot transaction prices currently have a premium of around 24%.
Mobile DRAM prices are also expected to rise by more than 5% QoQ. The industry expects that the rising trend of mobile DRAM prices, which has already reached a low point, will continue for several quarters, accelerating the virtuous cycle of demand across DRAM prices. Kim Young-gun, a researcher at Mirae Asset Daewoo, said, “It is expected to trigger a virtuous cycle of demand for overall DRAM due to the robust mobile DRAM. As demand for server DRAM is imminent, there is a high possibility of a chain price increase in each field.”
In the case of NAND flash, prices continue to decline in 1H and are expected to reverse from 2H. Doh Hyun-woo, a researcher at NH Investment & Securities, said, “NAND fixed transaction prices will rise from -3% in the second quarter of this year to 4% in the third quarter and 6% in the fourth quarter.” “We have upgraded the previous 5-10% decline to a flat trend.” As for DRAM Exchange, I heard that orders for solid state drives (SSDs) are increasing due to robust notebook PC sales, etc., as a reason for the upward revision of the outlook.
In addition, the two companies will begin mass production of the 4th generation (1a) DRAMs this year, 10 nanometers (nanometers, 1 billionths of a meter). Although Micron, the third largest in the market, started mass production of the fourth-generation DRAM ahead of them, Samsung Electronics and SK Hynix seem to have little concern. An official from Samsung Electronics said, “What is recognized in the market is the reliability and stability of the product itself rather than the speed of release,” he said. “It doesn’t matter who released the 4th generation DRAM first.” SK hynix recently completed the M16, the world’s largest semiconductor plant for the production of 4th generation DRAM, in Icheon.
Micron entered mass production of 176-layer NAND flash before Samsung Electronics and SK Hynix even in the field of NAND flash, where stacking competition is fierce, but Samsung Electronics and SK Hynix are in a position that there is no significant difference from DRAM. They plan to release high-layer NAND flash with more than 176 layers within this year and wait for the market’s choice.
Young-san Choi, a researcher at Ebest Investment & Securities, said, “Samsung Electronics’ (semiconductor) strategy is to rapidly expand its market share in the foundry market through extreme ultraviolet (EUV), and DRAM has a technological differentiation through the preemptive introduction of EUV, and NAND is a facility investment. It can be summarized as the transition to a mid- to long-term oligopoly through the increase. “SK Hynix is judged to be the’solid second-largest memory industry’ by acquiring the Intel NAND division and expanding its server SSD share.
Samsung Electronics and SK Hynix are also expected to do well in the system semiconductor field. In particular, semiconductors in various fields such as automotive semiconductors, display driver ICs (integrated circuits/DDI), mobile application processors (AP), and CMOS (complementary metal oxide semiconductor) image sensors have suffered a shortage of supply, and the results of the two companies that make them have been There is a prospect that it will increase.
In line with the semiconductor boom, attention is also being drawn to the semiconductor-related mergers and acquisitions (M&A) that Samsung Electronics is planning. “There will be a meaningful M&A within three years,” said Yoon-ho Choi, president of Samsung Electronics’ management support office, on the 28th of last month, saying, “We have been very carefully reviewing M&A targets for the past several years,” in a conference call for 2020 annual performance announcement. Currently, it is known that Samsung Electronics has over 100 trillion won in cash assets. The industry is predicting whether Samsung Electronics will M&A with a vulnerable automotive semiconductor company.