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Samsung, SK Hynix and Micron, the world’s top three global memory manufacturers, boosted production capacity in the third quarter to meet Apple’s immense demand for mobile memory as it launched the iPhone 6, according to DRAMeXchange, a division of the Taiwan-based market intelligence firm TrendForce. The reduction in commodity DRAM production caused contract prices to rise, and commodity memory products had the highest margins in the third quarter.
EMMC, eMCP and SSD growth was higher on average in the third quarter than in the first half of the year on the back of robust demand for the iPhone 6 and healthy OEM shipments. Additionally, NAND flash prices were stable, resulting in a 12.2% quarterly increase in suppliers’ earnings, bringing total NAND flash revenue to US$8.58 billion in the July-September period. Embedded products manufactured on next-generation process technology became mainstream in the market in the third quarter, improving vendors’ cost structure, said Sean Yang, assistant vice president of DRAMeXchange, a division of Taiwan-based market intelligence firm TrendForce.
iPhone shipments in 2014 increased to 188.1 million units, up 22% on year, as strong demand for the new large-screen iPhone 6 reversed a year of declining sales, according to DRAMeXchange, a division of the Taiwan-based market intelligence firm TrendForce. “The strong performance of the iPhone 6 reaffirms Apple’s leadership position among high-end smartphone vendors,” said Sean Yang, an assistant vice president at DRAMeXchange.
The majority of DRAM contract prices were settled in the first half of October, according to DRAMeXchange, the memory and storage research division of TrendForce, a Taiwan-based market intelligence firm. The average 4GB contract prices reached US$ 32.75, an increase of 2.34%, while the lowest contract prices came to approximately US$ 32.5, up 4.84%.
Samsung Electronics plans to build a new semiconductor plant in South Korea at a cost of Won15.6tn ($14.7bn) to meet burgeoning demand for chips used in mobile devices. Construction of the chip-making plant, which will be the largest of its kind globally, will begin in the first half of 2015 and be completed in the second half of 2017, Samsung said.
