Recently, Siu Yi Innovation and SMIC signed a wafer purchase agreement of up to 1.2 billion yuan or more by the end of 2018, affecting Taiwanese manufacturers to be cautious. SMIC committed to provide a monthly basis Siu Yi innovation 2.5 million pieces of production capacity, accounting for the global supply of NOR Nearly 30% of the scale of the amount of Siu Yi significantly increase the supply of NOR Flash in mainland China.
Winbond and Winbond two Taiwan manufacturers simultaneously increase production of NOR chips, Winbond announced that Zhongke plant scheduled for the end of this month will be increased from 44,000 to 48,000, the future will be increased to 52,000 to 53,000, if necessary Can be further increased to 55,000, the main increase in the production of NOR chips. Wang macro in the second half of this year will also move to 12-inch high-end production of new production process. Foundry memory-based Crystal has also announced that the crystal Hao Branch restart NOR production capacity, related capacity will be put in place, if combined with the Wuhan Xinxin's massive investment, all for the original in short supply NOR Flash market foreshadowed.
Global NOR Flash has not seen any expansion for many years. International manufacturers such as Cypress have gradually faded out of the NOR Flash market to focus on the automotive and industrial markets while international manufacturers sell 8-inch plants Action will also affect the overall supply of NOR Flash market, the market came Micron in the reduction of 8-inch capacity did not simultaneously expand 12-inch capacity, resulting in tight supply in the second half.
According to insiders, Siu Yi innovation in SMIC's additional capacity scheduled for the first quarter of 2018 one after another cast, plus Wang Wang and Winbond, as well as Jing Hao Branch, etc. simultaneously increase production grab prey, fear of NOR chip In the first quarter of next year, another price war, especially in the low-capacity products, increased competitive pressure .For the new capacity of the NOR Flash market, Wang Min, chairman of Mong Wang, said the most out of stock is the Parallel Flash chip and high Capacity chips, and NOR Flash chip rally all the way to the low-cost SLC NAND chips.New capacity only for low-capacity NOR Flash (capacity below 32Mb) market impact, but the mid-to-high-end market out of stock continued, all the way to 2018 Will not be eased.
Jibbon consulting pointed out that due to the limited increase of NOR Flash production capacity, coupled with the machine into trial and trial production, the actual output will have to wait until the second half of next year will be opened one after another, from the point of view, the next few quarters NOR Flash Due to the tight supply situation.As OLED, TDDI, Internet of Things three products for the NOR Flash product demand is an emerging field, coupled with the original NOR Flash basic market is not reduced, this year's short-term imbalance between supply and demand difficult, and the recent Market came, NOR Flash in the third quarter rose 2 percent, the fourth quarter continued to rise 1 to 2 percent, will help Siu Yi innovation, Winbond, Wang Wang, Jing Hao Branch revenue and profit which performed.