"The proportion of China's overall NAND Flash usage relative to the world's NAND Flash output... expected to hit 20.6 per cent in 2014, and 30 per cent or more in 2015."
This prediction will depend on a very high growth in mobile products
Ron
Insightful, timely, and accurate semiconductor consulting.
Semiconductor information and news at - http://www.maltiel-consulting.com/
Mobile device space lifts memory market in China
Posted: 18
Nov 2014
China
has consumed about 4.789 billion DRAM chips
and 3.518 billion NAND Flash chips from the 2Gb category this year,
accounting for a respective 19.2 per cent and 20.6 per cent of the world's
total DRAM and NAND Flash output. This highlights the country's increasing
business potential as a result of the appeal China generates in terms of
consumer device markets such as PC, smartphone and tablets, indicated
DRAMeXchange, a research arm of TrendForce.
China's PC DRAM consumption
is presently at about 15 per cent. Benefiting from domestic demand, Lenovo has
managed to raise the scale of its business operations over the years, and is
acquiring other companies as a means to boost its presence among first tier
manufacturers. While the company is still competing fiercely with HP for top
position in the PC market, its overall PC shipments are ahead of all of its
other competitors. For 2015, DRAMeXchange predicted that Lenovo's market share
will arrive at about 17 per cent. As has been the case with the other markets,
mobile DRAM is expected to gradually replace PC DRAM as the mainstream in China
given the country's growing smartphone and tablet sales. Aside from ZTE and
Huawei, which are doing relatively well overseas, most China-based smartphone
brands are expected to place their focus on the domestic market. Based on
TrendForce's 2014 market statistics, China alone accounts for 28 per cent of
mobile DRAM's overall bit demand. The importance of China's economic
development to the entire DRAM industry is expected to become more apparent
next year as that proportion rises to over 40 per cent.
As the NAND Flash
manufacturing processes are advancing to under 1ynm, many NAND Flash
applications including smartphone and tablet-based eMMCs and notebook-based
SSDs are showing improved growth in the market. Competition among global OEM
manufacturers, meanwhile, is starting to become more intense, with brands other
than Apple and Samsung starting to make their way into the country's lucrative
market. The level of China's NAND Flash consumption has managed to grow
considerably over recent years due to Lenovo's rise to prominence, the
above-average growth shown by China's emerging brands, and the improving
standards of China's hardware designs. By the end of 2014, DRAMeXchange
projects that the NAND Flash market's total value in China will reach up to
$6.3 billion. The proportion of China's overall NAND Flash usage relative to
the world's NAND Flash output, on the other hand, is expected to hit 20.6 per
cent in 2014, and 30 per cent or more in 2015.
China's efforts over the
years to transform from a manufacturing-based to consumption-based economy has
been largely successful. Given the consistent growth in its economy and the
country's rising wage levels, many of the productions in China are bound to be
outsourced to other emerging countries. The Chinese government's present goal
is to improve the country's outlook by implementing strategic policies that are
aimed at enhancing its industrial capabilities. One such policy involves
increasing the imports of semiconductor components such as smartphone CPU, AP,
DRAM and NAND Flash, the combined value of which exceeds the value of China's
imports for oil. In the future, it would be interesting to see whether
Unisplendour Corp. Ltd's (UNIS) efforts to integrate resources from Spreadtrum
Communications, RDA and Intel will be successful.
Due to the relatively high
proportion of CPU, DRAM and NAND Flash components imported by China, the government
policies that are implemented with regard to these three product categories may
prove critical to the country's industries. A few days ago, the Chinese
government announced a policy worth nearly $20 billion that involves mastering
the technologies at the upper streams of the country's semiconductor supply
chain and applying these technologies to mid to lower streams. The main purpose
behind this is to enable the country's supply chains to be more integrated and
to allow momentum in China's domestic industries to persist.
