| REVIEW | As the United States a company with worldwide operations, Micron respect and comply with all laws and regulations from the US and the Trading stronghold of the country, has suspended supply to Huawei, in order to comply with relevant regulatory requirements of the US government. |
Following the previous Intel, Qualcomm and other chip makers United States to suspend cooperation with Huawei, local time on May 29, the US memory chip maker Micron Technology has officially issued a statement, announced the suspension of supply to Huawei.
Micron In the statement pointed out, as the United States a company with worldwide operations, Micron respect and comply with all laws and regulations from the US and the Trading stronghold of the country, has suspended supply to Huawei, in order to comply with relevant regulatory requirements of the US government .
In addition, Micron also sent a letter with the requirements of the major module plant, are not allowed to use Micron memory chips made of modules, memory card, or solid-state hard drives and other storage related products, direct or indirect supply to Huawei and its affiliates.
Although the US Department of Commerce issued a temporary license to Micron in May 20, in order to ensure that as of May 16 a few days ago on the market, Huawei has affected product contains Micron parts. This temporary license from the US Department of Commerce, only to ensure that Huawei's product 16 (including 16) until shipment.
Micron will have fallen sharply in the second half revenues or
According to Micron's financial results as of the first half of fiscal year 2019, Micron's 13% revenue from Huawei, therefore, Micron is evaluating possible options to mitigate the expected impact on our business caused.
In other words, if you do not consider other factors, only because of disruptions cooperation with Huawei, Micron's revenue in the second half probably will be reduced by 13%.
Also to be noted that, according to DRAMeXchange Consulting Semiconductor Research Center (DRAMeXchange) survey shows that DRAM price decline in the first quarter of this year fell to expand from the original estimate of 20 to 25% to about 30%, is the largest single quarter since 2011 decline.
DRAMeXchange DRAM market outlook is conservative views, is expected in the second quarter price will continue to decline month by month, the entire season will be close to 25% decline.
Micron supplier to Huawei after a pause, or DRAM market will lead to further downward pressure on prices, which inevitably will lead to a further decline in the second half of Micron's revenue. Although Micron stressed that the adjustment strategy to reduce the impact, but also increased market expectations that prices continued to fall.
Huawei affect the geometry?
Display previous data compiled by Bloomberg from Huawei's global top ten suppliers (from the purchase amount of view) are the Foxconn, BYD, TSMC, Ophelia light, FIH Mobile, Flextronics, SK Hynix, Broadcom, Qualcomm and Sunny. Of which only one memory chip maker that SK Hynix, ranked No. 7.
That is to say, in which all storage vendors, Huawei is less dependent on SK Hynix, far higher than Samsung, Micron, Toshiba and other storage vendors.
From the current entire DRAM memory market share, Samsung's revenue in the first quarter amounted to 6.97 billion US dollars, from the previous quarter fell 26.3%, accounting for 42.7% market share, ranking first. SK Hynix in the first quarter revenue of $ 4.88 billion, 31.7% decline from the previous quarter, the market share of 29.9%, ranking second. Micron to maintain third place with revenue of $ 3.76 billion, down 30.0% from the previous quarter, market share remained at about 23%.
For Huawei, the optional DRAM suppliers is relatively small, are mainly concentrated in the Samsung, SK Hynix and Micron three, so Huawei in the DRAM procurement for Micron still there are some dependencies, but not irreplaceable.
The other two major DRAM makers Samsung and SK Hynix, Micron is fully capable to take over spit Huawei orders, but given the current market continued to decline in DRAM prices, the three major DRAM makers may consider the market to boost prices by reducing production capacity.
Previously, Samsung, Micron, SK Hynix and other companies have announced plans to cut capital spending in 2019 to reduce NAND Flash, DRAM capacity, which might make the Samsung, SK Hynix supply Huawei DRAM is affected to some degree.
In the NAND Flash market, TrendForce data show that the world's top five NAND Flash suppliers are Samsung, Toshiba, Western Digital, Micron, SK Hynix, Micron which ranked fourth in market share of 15%.
However, Micron off for Huawei, a smaller effect on the supply of NAND Flash. Prior to Huawei's main models of memory chips are mainly supplied by Samsung, SK Hynix, Toshiba and other manufacturers.
As previously mentioned, among the storage vendors, Huawei for the highest degree of dependence SK Hynix, Samsung should be the next, and with the break for Micron, which also means that Huawei's dependence for SK Hynix and Samsung will It will be further improved. and,
The future of the US ban on whether it will have an impact on the future of Samsung and SK Hynix, which has become a key determinant of future sustainability Huawei normal operation.
Although, at present 32 domestic layer 3D NAND FLASH memory of the Yangtze River has been in mass production, mass production is expected by the end of 64-slice 3D NAND FLASH (next year will challenge the 128 layer 3D NAND FLASH, is expected to catch up with the mainstream level abroad). In the DRAM memory chips, Hefei Xin long storage of DRAM memory chips is expected to mass production of four seasons in the year.
However, the current domestic DRAM, NAND Flash with foreign companies, whether in technology, or in the production capacity, have not a small gap for the current Huawei, the domestic storage vendors still difficult to provide sufficient help, can only say to Huawei to provide the final guarantee.
This switched: https://www.linuxprobe.com/dramexchange.html