The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. More time needed for market conditions to recover; focus to shift to supply cuts In our recent reports, we reviewed semiconductor market conditions and share price
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. Affected by less data center investment and reduced demand for IT sets, 3Q22 DRAM ASP is likely to fall 17% q-q. We forecast SEC’s 3Q22 OP at W11.80tn (-16% q-q). Adjustments to planned 2023 new capac
Market research company IC Insights predicted that the global image sensor market will suffer negative growth this year.The image sensor market has enjoyed double-digit growth for years as its use in smartphones and automobiles has increased. But it is expected to record a negative growth rate for t
Samsung Electronics surpassed Intel in semiconductor sales in the second quarter of 2022, retaining the top spot in the global semiconductor market for the fourth quarter in a row. However, as the memory semiconductor market is shrinking, the Korean semiconductor giant may lose its leading position
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Cut target price to KRW120,000 We cut our TP on SK hynix from KRW125,000 to KRW120,000 (12m fwd BVPS x 1.20x P/B), as 2022E/2023E earnings were significantly revised down to reflect lowered bit growth projectio
Solidigm, a NAND flash subsidiary of SK Hynix, will invest more than US$100 million to establish a semiconductor R&D center in Sacramento, California.Solidigm announced on its website on Sept. 14 (local time) that it has selected Rancho Cordovs as the site for a global R&D campus after a thorough si
Samsung Electronics announced on Sept. 15 its new environmental strategy, a comprehensive effort to join global efforts to tackle climate change. At the heart of the new commitment is achieving net zero carbon emissions (Scope 1 & Scope 2) for all operations in the Device eXperience (DX) Division by
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 We maintain BUY and 12m TP of KRW75,000 on SEC. We see 2H22 OP coming in at KRW23.2tn (-18% HoH, -22% YoY) and missing the market consensus by 10%, as all divisions excl.
SK Hynix will build a new semiconductor production plant, dubbed M15X, in Cheongju, North Chungcheong Province, by investing over 15 trillion won.The company announced on Sept. 6 that it has decided to start construction of M15X, an expansion fab of the M15 NAND flash production line ahead of schedu
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. The US government announced on Aug. 31 (local time) that it will place restrictions on exports of high-performance GPUs from Nvidia and AMD to China and Russia. This is a negative development for the
Korean chipmakers' share of the global NAND flash market topped 50 percent in the second quarter of 2022. Global NAND flash sales in the second quarter hit US$18.12 billion, up 1.1 percent from the previous quarter, according to TrendForce, a Taiwanese market research company. During the second
SK Hynix is accelerating the development of a next-generation standard for 4D NAND flashes by mass-producing 238-layer products, the world's highest layers.The company introduced its 4D 2.0 technology at Flash Memory Summit 2022 (FMS 2022), which was held at the Santa Clara Convention Center i
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. We expect DRAM ASP to drop 19% in 3Q22 on reduced data center investment and decreased IT set demand. Positives in play include capacity investment adjustments and improved parts inventory for set bui
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. New investment for memory chips is likely to decline until 1H23 due to a slowdown in memory chip supply-demand conditions. However, SEC’s foundry business is expected to continue expanding its investm
South Korean semiconductor companies’ concerns are growing after the passage of the CHIPS and Science Act of 2022. The act is to provide US$39 billion and a 25 percent tax credit for companies building semiconductor facilities in the United States, and provide US$11 billion for those doing semicondu
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. Memory market upturn to hinge on: 1) inventory depletion at client companies; 2) improvement in macro conditionsShare prices of memory chipmakers typically turn to
The World Semiconductor Trade Statistics (WSTS) announced on Aug. 23 that the global semiconductor market’s year-on-year growth rates for this year and next year are estimated at 13.9 percent and 4.6 percent, respectively. For reference, the previous estimates in June were 16.3 percent and 5.1 perce
Samsung Electronics broke ground for a new semiconductor research and development complex in Giheung, Korea on Aug. 19, aiming to extend its leadership in state-of-the-art semiconductor technology.The company plans to invest about 20 trillion won by 2028 for the complex in an area covering about 109
Samsung Electronics is expected to release a 236-layer NAND flash product within this year. In addition, it is planning to open a new R&D center this month and the center will be in charge of developing more advanced NAND flash products.Memory chip makers are competing to increase their layer counts
The U.S. Department of Commerce is working on export restrictions related to advanced semiconductor and turbine production. The semiconductor part of the restrictions, the main target of which is China, includes electronic design automation software for use in 3-nm chip and more advanced manufacturi