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Owing to the shipment restrictions imposed by the U.S. government, Huawei announced on November 17 that it will sell its subsidiary Honor, including all business units and assets, in order to protect Honor’s brand equity and the livelihood of its employees, according to TrendForce’s latest investigations. Despite the change of ownership, however, “new Honor” still has to cope with the shortage of foundry capacity in 2021, leading to a forecasted market share of 2%, while Huawei’s market share is expected to reach 4%. It should be pointed out that Apple is expected to capture some demand that was previously aimed at Huawei’s high-end smartphones. At the same time, Huawei’s Chinese competitors Xiaomi, OPPO, and Vivo are expected to ramp up device production. Hence, the volume of new smartphones coming from these sources will exceed the estimated market share gap left by Huawei. Also, if the smartphone market does not have sufficient demand to accommodate the overly inflated production plans in 2021, then brands may have to readjust their production targets.
DRAM suppliers’ bit shipments exceeded expectations due to the demand surge from prior to the September 15 deadline of U.S. sanctions prohibiting the shipment of tech products to Huawei, according to TrendForce’s latest investigations. During that period, Huawei was aggressively building up its component inventory in response to the tightening of the export control rules. All suppliers posted a QoQ growth in their bit shipments. On the other hand, DRAM prices also made a downward turn in 3Q20. Among the different application segments of the DRAM market, the server DRAM segment exhibited the weakest procurement momentum due to server manufacturers experience excess inventory, leading to a general decline in DRAM prices. For most suppliers, the growth in bit shipments was not enough to offset the drop in quotes. Their quarterly revenues therefore registered a marginal QoQ decline. However, Micron managed to post a significant revenue growth despite headwinds, and its result helped raise the entire industry’s performance. In sum, the quarterly global DRAM revenue for 3Q20 increased by 2.0% QoQ to US$17.46 billion.
Despite the COVID-19 pandemic’s negative impact on the global economy, several emergent trends, such as WFH, distance education, rising 5G smartphone penetration, and strong component demand from telecom infrastructure build-out, have resulted in a bullish semiconductor market against economic headwinds, according to TrendForce’s latest investigations. Global foundry revenue is projected to undergo a 23.8% increase YoY in 2020, the highest percentage in 10 years.
Demand for end-devices saw a continued growth due to the rise of the stay-at-home economy brought about by the COVID-19 pandemic in 2Q20, according to TrendForce’s latest investigations. As U.S. sanctions against shipping chips manufactured with U.S. equipment and technologies to Huawei took effect on September 15, various OSAT companies rushed to make deliveries prior to the September 15 deadline. Driven by this wave of urgent orders, the top 10 largest OSAT companies’ quarterly revenue reached US$6.759 billion in 3Q20, a 12.9% increase YoY.
The COVID-19 pandemic has accelerated paradigm shifts in work, education, and living for people around the world since the early part of 2020, according to TrendForce’s latest investigations. The proliferation of smart handheld devices has led to strong and consistent growth in the demand for cloud storage and computing. Furthermore, the market penetration of cloud services has risen sharply as enterprises undertake digital transformation projects. On the side of general consumers, there have been changes in online spending habits and advances in business models for e-commerce. At the same time, a new generation of social media platforms has risen. Thanks to these developments, cloud service providers (CSPs) are able to collect huge amounts of consumer data for developing a more diverse range of businesses. As such, TrendForce’s latest survey of the global server market indicates that hyperscale servers already account for almost 40% of the total demand in 4Q20, and the number of hyperscale data centers is now three times of that in the 2012-2014 period.