Memory

2016 - Q1
The information found in Industry Watch is collected from many sources. It is gathered and updated on a quarterly basis by America II's Product Marketing Team. The data is intended to provide a high-level overview of lead times and market conditions. Buyers should use this information for guidance only.

Memory Segment Looks to Overcome Obstacles in 2016

If market speculation and whispers from around the world are to be believed, 2016 appears to hold various challenges for the memory sector to overcome. With forecasted CapEx at various market leaders being trimmed for the year and plunging corporate profits in Q4 2015 being reported, many analysts have maintained a light view for any significant growth in mature segments such as the PC market.

A survey to gauge market sentiment among the Chinese channel traders in the weeks running up to the Chinese New Year holidays turned up an interesting snippet of information. In the past quarter, there have been quite a few factory insolvencies; the most significant of which involved an Asian white goods factory that had outstanding debts of approximately $10 million.

Volatile currency fluctuations and the Fed’s eventual intervention in interest rates this year also have the markets spooked and a higher greenback has typically never boded well for memory markets. Anecdotal evidence from employees at chip packaging centers in South East Asia also point to a significant slowdown of late, causing one to wonder if the spate of acquisitions in the semiconductor market within the past year has had a ripple effect on production.

Although sentiment and forecasts remain cautious, there are still silver linings in at least two segments that are worth noting. The enterprise business related to Flash is growing at a good pace and the mobile segment currently enjoys higher ASPs than consumer/PC DRAM.

Employing a globalized world view, combined with the overall success of these two segments, one can see that the world is indeed getting smaller. With data centers evolving as the backbone of how society lives today by collating data for users of mobile devices intent on spending money online or running social apps, these areas will only continue to grow as more people discover a new life, virtually.