Currently, the consequences of Xi’an’s lockdown on Samsung is weighted most heavily towards the difficulty of scheduling shifts for personnel, according to TrendForce’s investigations. Due to restrictions on movement and other lockdown measures, Samsung must continue operations with limited manpower. Samsung is currently making active adjustments to reduce impact on output and the local government expects a return to normalcy within one to two weeks. However, if the pandemic is not properly controlled, short-term impact on the production utilization rate of the local factory campus cannot be ruled out, resulting in a slight decline in output. As for raw materials required for production such as water and power, supply seems to remain sufficient, though Samsung is still confirming the specific degree of any impact.

Production has not been interrupted at Samsung’s Xi’an plant, the company’s remedy is reduced operational scale which may affect utilization rate  

Following up on TrendForce’s previous press release, Samsung’s two major NAND Flash fabs in Xi’an are still manufacturing without experiencing significant disruptions at this moment. However, with the local authority enforcing even stricter restrictions on the movements of people, Samsung has been compelled to perform some temporary operational adjustments to the two fabs. With respect to end-products, facilities in the Xi’an region are primarily responsible for the assembly of consumer electronics such as UFS and client SSDs, meaning changes in the Xi’an fabs’ operations will have a direct impact on the procurement activities of smartphone and notebook computer manufacturers. However, as Samsung’s inventory level is still relatively high, the company should be able to keep supplying these products to buyers with no issues in the short run, although the decline in the these products’ prices may moderate somewhat.

Judging by the performance of the NAND Flash spot market on December 29, TrendForce further indicates that most suppliers have now stopped giving price quotes for NAND Flash products after Samsung released an official statement on the Xi’an matter. Regarding the forecast of NAND Flash contract prices for 1Q22, TrendForce will continue to closely monitor responses by Samsung as the pandemic progresses. If the lockdown continues, the decline in NAND Flash contract prices may potentially see a further tapering.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

After Malaysia extended its MCO (movement control order) 3.0, the Filipino government also announced the implementation of ECQ (enhanced community quarantine) measures in Metro Manila until August 20 in response to the Delta variant’s rapid spread in Southeast Asia that began in July. According to the August edition of TrendForce’s MLCC Market Bulletin, Japanese MLCC supplier Murata operates a manufacturing facility in Tanauan City, primarily for large-sized automotive MLCC (0.06 x 0.03 inches to 0.12 x 0.06 inches) production.

This facility manufactures capacitors that meet the auto industry’s requirements of high capacitance, high voltage, and high temperature tolerance, and its monthly automotive MLCC production capacity accounts for about 18% of the industry total. As demand from the automotive market increases, Murata’s Tanauan-based facility is expected to maintain a high capacity utilization rate going forward.

Samsung likewise operates an MLCC manufacturing facility in the Philippines, albeit in Calamba City. While the Calamba facility is primarily responsible for manufacturing normal MLCC (which are low-end and mid-range MLCC with standardized size/specs), its monthly normal MLCC production capacity accounts for 15% of the industry total and is second only to Samsung’s Tianjin-based facility. As well, the Calamba facility operates at a capacity utilization rate of more than 90%.

TrendForce’s findings indicate that the aforementioned facilities are located approximately 67 km south of Manila and therefore do not fall under the ECQ order as yet. The two facilities are operating and shipping as normal. However, should the emergency implementation of ECQ in Metro Manila fail to contain the Delta variant, the pandemic would likely to make its way south, in turn affecting the two facilities. Both Murata and Samsung are on high alert against such an eventuality. On the other hand, given that Malaysia has yet to recover from the ongoing pandemic and lift its MCO 3.0 restrictions, Taiyo Yuden’s Malaysia-based MLCC manufacturing facility is operating at 80-85% capacity. The resultant shortfall of high-end MLCC supply will likely make it difficult for ODMs to procure sufficient high-end MLCC in 3Q21.

Various governments in Southeast Asia have implemented nationwide or regional lockdowns as well as movement control orders in order to curb the spread of the pandemic. As such, MLCC suppliers including Taiyo Yuden, Murata, and Samsung, all of which have facilities located in Malaysia and the Philippines, are now confronted with an increasing risk of uncertainties regarding their production capacities and shipment schedules. Looking ahead into the peak procurement period of 3Q21, TrendForce expects some ODMs to redirect their low-end and mid-range MLCC orders to Taiwanese suppliers such as Yageo and Walsin in the short run.

Recent reemergence of COVID-19 in China threatens the lifeblood of MLCC production

Home to 55% of the world’s MLCC production bases, China has seen a reemergence of the pandemic in August in Nanjing and Zhangjiajie. It should be pointed out that Murata and Yageo operate major MLCC manufacturing facilities in Wuxi and Suzhou, which, much like Nanjing, are also located in the province of Jiangsu. Should the pandemic continue to worsen in China, the global supply of MLCC would undoubtedly sustain significant damage as a result. Despite China’s aggressive efforts to contain the pandemic through comprehensive population testing and movement controls, the spread of the Delta variant still poses a global threat. Therefore, aside from the current state of disease containment in Southeast Asia, how China manages its pandemic situation will become another vital point of observation for the MLCC market.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

Given the forecasted recovery of the smartphone market and the corresponding rise in TDDI IC demand throughout this year, total smartphone TDDI IC shipment for 2021 is expected to reach 760 million units, according to TrendForce’s latest investigations. Tablet TDDI IC shipment for 2021, on the other hand, is expected to reach 95 million units.

TrendForce indicates that the overall demand for consumer electronics and IT products has been gradually intensifying since the COVID-19 pandemic began to slow down in 2H20. At the same time, smartphone manufacturers restocked their component inventories, while Huawei was sanctioned by the U.S. Department of Commerce. These events marked an upturn in demand for smartphone components, including IC products. However, although foundries ramped up their capacity utilization rates in response to soaring end-product demand, semiconductor component supply has been lagging behind the rising demand.

Case in point, TDDI IC prices have been increasing due to the component’s tightening supply. As foundries’ production capacities at their 12-inch fabs’ 80/90nm nodes are unable to meet the global demand for TDDI ICs, IC design companies have been stepping up the pace to transition the manufacturing process of their higher-end TDDI IC products from the 80/90nm nodes to the 55nm node instead. Smartphone and tablet manufacturers, on the other hand, have expanded their procurement activities for TDDI ICs owing to a forecasted shortage of these components. These factors propelled smartphone TDDI IC shipment for 2020 to 700 million units, a 25% increase YoY.

Tablet TDDI IC shipment for 2021 is projected to reach 95 million units as the tablet market becomes the next battleground for IC design companies

Smartphone manufacturers have been ramping up TDDI IC adoption in light of smartphone TDDI ICs’ increasing maturity. In addition, as 8-inch capacities become fully loaded across the foundry industry, IC design companies are accelerating the transition of traditional discrete DDIC architecture to TDDI IC, which is primarily manufactured with 12-inch wafers. This transition is expected to result in even higher demand for foundry capacities. As previously mentioned, wafer capacities at the 80/90nm nodes have been in severe shortage. Therefore, to mitigate the risk of tight wafer supply in 2020, IC design companies are now not only transitioning their TDDI IC manufacturing process towards the 55nm node, but also looking to secure a stable supply of wafer capacities by outsourcing their manufacturing operations across a diverse number of foundries. As smartphone demand rises going forward, smartphone TDDI IC shipment for 2021 is expected to reach 760 million units, an 8.6% increase YoY.

Likewise, IC design companies have also turned their attention to the budding tablet market and started releasing TDDI ICs for tablets. IC design companies are primarily interested in developing TDDI ICs for tablets for two reasons: First, a mid-range or high-end tablet contains double the number of TDDI ICs per unit compared to smartphones. Secondly, most of these tablets feature active stylus compatibility, which means the ASP for their display ICs is relatively high. For the past two years, Huawei in particular has been ambitious in cultivating its tablet market and developing TDDI ICs. However, other IC design companies are now following suit and participating in this market as IC design technologies become more mature, and more tablet manufacturers become proactive in adopting TDDI ICs for tablet use. Tablet TDDI IC shipment for 2020 is estimated at 65 million units, whereas this number is projected to reach 95 million for 2021, an impressive 46.2% increase YoY.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

The stay-at-home economy generated by the COVID-19 pandemic has resulted in persistent demand for IT products such as monitors, according to TrendForce’s latest investigations. However, the shortage of monitor panels has been increasingly severe since non-IT panels have been occupying most of manufacturers’ production capacities, while foundries’ wafer capacities dedicated to IC products have also become increasingly strained.

Furthermore, Samsung Display (SDC) is set to shutter its panel manufacturing operations within 2021, during which its monitor panel market share is expected to drop to 1% from last year’s 12%, and as the ownership of CEC Panda’s Gen 8.5 production line transfers to BOE, other panel suppliers are likely to benefit from these events.

Looking ahead to the activities of various panel suppliers throughout 2021, TrendForce analyst Anita Wang indicates that CSOT will be the main beneficiary of SDC’s exodus from the panel manufacturing business. By acquiring SDC’s Suzhou-based Gen 8.5 production line, maintaining its capacity expansion efforts, and taking additional orders for curved VA panels this year, CSOT is likely to double its monitor panel shipment in 2021 compared to the previous year.

HKC, on the other hand, is currently preparing to enter the monitor panel market. Not only does HKC have sufficient production capacity for VA, IPS, and TN products, but the company is also primarily focused on offering open cell panels, meaning HKC’s business model coincidentally complements both monitor ODMs and Korean monitor brands, which primarily manufacture their products in-house. Should HKC’s mass production schedule proceed as planned, its monitor panel shipment for 2021 may exceed 10 million units. Nonetheless, in spite of the massive planned increase in panel production by both CSOT and HKC, the shortage of IC components remains a major bottleneck constraining the two companies’ shipment this year.

Thanks to the acquisition of CEC Panda’s Gen 8.5 production line, as well as BOE’s existing panel capacity, BOE, the largest monitor panel supplier in the world by shipment, is expected to raise its market share from 26% in 2020 to 31% in 2021, thereby widening its lead over second-ranked LGD. Going forward, BOE will attempt to maximize its competitive advantage in the industry by fully integrating and optimizing the Gen 8.5 production line it acquired from CEC Panda.

Apart from efforts by CSOT and HKC to increase their respective panel supplies, SDC is also planning to extend its panel manufacturing operations. In 2021, SDC is expected to produce about 1.1 million units of panels, all of which will be supplied to the other Samsung subsidiaries. Similarly, LGD will increase its production capacity for monitor panels in response to increased profits from these panels, along with the fact that its clients have been redirecting their orders for IPS panels from SDC to LGD. LGD is expected to revise up its targeted shipment of monitor panels for 2021 to 38 million units, although the power outage at NEG’s glass fab at the end of 2020 may cause LGD to defer its scheduled capacity expansion plans in 1Q21.

AUO is currently focused on increasing its production capacity for curved panels owing to high demand from monitor brands. AUO’s market share in this product category is expected to close in on 50% this year. Likewise, the company is expected to raise the market share of its monitor panels to 18% because demand for gaming monitors and curved monitors has been strong, and because AUO is expected to invest more resources in monitor production. Finally, Innolux (INX) will focus on improving the product structure of its monitor panel offerings this year, while increasing the per-area price of its panels. Hence, Innolux has been making an aggressive push to raise the allocation of large-sized, IPS, and gaming products within its overall product shipment.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com