Semiconductor Industry Growth Continues

 

Worldwide semiconductor revenue hit and all-time-record of $120.8B in Q2 2018, which represents an almost 4.5% quarter over quarter growth. More Integrated Circuits are being put into traditional products, such as enterprise data storage units and smart phones. Now cars, refrigerators, and a whole host of Internet of Things, are integrating chip sets into their products as well. Memory dominates chip production and usage, and has helped to keep Samsung in its leadership position. (Record Fab Spending)

Samsung Remains the Number One Semiconductor Manufacturer

Samsung posed Q218 revenue of $19.2B and Intel came in at $16.7B. Uncertainty at the helm of Intel with Brian Krzanich’s unexpected resignation has led to some confusion in the industry. Several semiconductor industry heavy weights are being considered as the next Intel leader, mostly outsiders. Historically, Intel CEOs have always been promoted to the top position from within its organization, but it’s not clear that any internal candidates have been adequately groomed. Several key Intel executives also left during Krzanich’s tenure, including Renee James, Stacy Smith, and Kirk Skaugen. Bob Swain, Intel’s acting CEO, as well as permanent CFO, has announced that he does not want the CEO role.

SK Hynix and Micron and Toshiba Manufacture Semiconductor Memory

Along with Samsung’s growth in Q218, SK Hynix experienced a whopping 16.4% quarter over quarter revenue increase, and total revenue of $9.5B. On it’s heals was Micron Technology, with $7.2B in sales, but with only a 3.4% QoQ growth. 4th runner up was Toshiba’s memory unit with $2.8B in revenue, and a mere 0.5% QoQ increase. (Figure 1. Futuristic Chipset Dashboard Panel – Below)

Figure 1. Chipset Memory – Futuristic Dashboard Panel 

Semiconductor Manufacturing Equipment Start Up Delays in China

Industry analysts and semiconductor chip consumers are all watching and waiting for the three Chinese DRAM and NAND suppliers to begin production. YMTC, Innotron and JHICC are expected to start pilot production in Q3 2018, and ramp up their outputs in the first half of 2019. By 2020, the Chinese are expected to have 20% of the world’s memory capacity. The plants are behind in schedule though, partially due to the limited availability of construction cranes needed to lift the Semiconductor manufacturing equipment into place.

Expert Witness Services for Memory Patent Infringement

It is not clear what memory chipsets will be the first from the Chinese suppliers. Innotron was hoping to make LPDDR4 8Gb products, but that seems all but impossible now without infringing other companies’ intellectual property. Samsung’s massive investment in semiconductor manufacturing equipment has almost certainly dashed the Chinese memory suppliers’ hopes of producing VNAND as well. Potentially there will be a need for expert witness services to support these memory litigation matters, and Glew Engineering (Expert Witness/Litigation ) is well-suited to assist clients.

In Conclusion :

It is not clear what memory chipsets will be the first from the Chinese suppliers. Innotron was hoping to make LPDDR4 8Gb products, but that seems all but impossible now without infringing other companies’ intellectual property. Samsung’s massive investment in semiconductor processing equipment has almost certainly

2018-09-06T14:11:53+00:00

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: