Prices of memory chips used in consumer electronics are expected to remain steady next quarter, as Huawei Technologies Co (華為) snatches up DRAM chips used in 5G equipment and networking devices to avoid supply disruptions amid US-China trade tensions, TrendForce Corp (集邦科技) said yesterday.
The Taipei-based researcher expects the prices of DRAM chips used in consumer electronics — such as TVs, set-top boxes and networking devices — to be flat or down 5 percent sequentially next quarter, compared with its projection from two months ago of prices dipping 10 to 15 percent.
Huawei, which fears that US government restrictions on its chip access could be extended to DRAM chips, has increased procurement of components needed for 5G deployment, while US-based chipmaker Micron Technology Inc last week said that it could not ship memory chips to Huawei after Sept. 14 due to Washington’s new rules, TrendForce said.
Even so, as consumer DRAM chips only account for 8 percent of the overall DRAM market, an upward price adjustment for those chips is not expected to have a significant effect on the overall market, which remains under downward pressure until data center operators and enterprise server investors begin to replenish their DRAM inventories, TrendForce said.
“The recent price rebound on the spot market is likely to be brief,” TrendForce said, adding that inventory levels in the supply chain are still one of the crucial factors in deciding overall DRAM prices.
The researcher forecast that the prices of DRAM chips used in servers would only see a sequential decline of 10 to 15 percent this quarter and 10 to 15 percent next quarter.
Mobile DRAM chip prices are forecast to drop by 3 to 8 percent sequentially this quarter and stay flat or decline 5 percent next quarter, it said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS