Global semiconductor manufacturing equipment sales will reach 52.7 billion US dollars[electronics manufacturing expo news flash]

17 Jul 2019

On July 11, the International Semiconductor Association (SEMI) announced that global semiconductor manufacturing equipment sales this year will reach US$52.7 billion, down 18.4% year-on-year.

MoneyDJ news, July 11 South Korea Customs Service (Korea Customs Service) released data, South Korea's exports in early July this year fell 2.6%, total electronics manufacturing expo exports reached $13.6 billion, down from $13.9 billion in the same period last year. Mainly affected by the sharp decline in semiconductor shipments, reflecting that the South Korean semiconductor industry is facing a strong headwind.

The SEMI report pointed out that China and Taiwan will seize the world's largest electronics manufacturing expo equipment market from South Korea this year, with a growth rate of 21.1% ranking first in the world and North America growing 8.4%. Mainland China will maintain its second largest market for two consecutive years, while South Korea will be third in terms of reduced capital expenditures. Except for Taiwan and North America, overall spending in all regions will shrink this year.

Global sales of semiconductor manufacturing equipment in 2020 are estimated at $58.8 billion. Due to the recovery in memory investment and the construction and expansion of electronics manufacturing expo factories in mainland China, it is expected to increase by 12% compared to 2019. SEMI expects mainland China to become the largest market for semiconductor manufacturing equipment.

Japan-South Korea trade war effect Group: NAND price is expected to rise another 30%

The recent market conditions of NAND Flash are hot, and the Japanese and Korean trade wars have made NAND Flash prices soar. Pan Jiancheng, chairman of the NAND Flash Control Chip and Modules Group, said that since July, the spot price has risen by more than 10%. From a rational electronics manufacturing expo perspective, there will be 20% to 30% upside in the future; if panic demand occurs in the market Even 50% is not over.

The recent price of NAND Flash has turned upwards. Pan Jiancheng said that this wave has actually been brewing for one or two months. The previous NAND Flash price was lower, mainly due to the pressure brought by the high inventory level in the market, but the third quarter has the demand for traditional goods. The effect of reducing electronics manufacturing expo production in the first quarter of the season began to ferment in the second and third quarters. Recently, there have been power outages in the Toshiba memory factory and trade tensions between Japan and South Korea.

Pan Jiancheng believes that the NAND Flash market conditions in the third quarter are not bad.

However, Pan Jiancheng also mentioned that now there is a change in the instantaneous demand and the shortage of goods, because after the previous price decline, the downstream control inventory is at a low water level, and now the market news comes out, prompting everyone to consider preparing more goods.

In July, the quotation of the upstream NAND Flash factory has risen by about 10%. The follow-up does not rule out the possibility of price electronics manufacturing expo increases. The module factory estimates that it will follow the market conditions and raise the price of downstream customers.

Toshiba is a major shareholder of the group and an important source of supply upstream, but it is understood that the previous group in the second quarter also included a lot of goods including Micron, Intel, SK Hynix and other manufacturers. At present, the NAND Flash inventory level of the electronics manufacturing expo group has exceeded 10 billion yuan (NTD, the same below), and the goods ordered at the current price in late June will be delivered in July and August. With low-priced inventory, when the market price rises, it is expected to pay attention to the performance and profitability of the group.

At the same time, the recent news that the group will stop the downstream offer, Pan Jiancheng pointed out that if there is no supply, it will hurt the customer very much, so it will continue to supply high-quality customers, but the price may rise. At present, the market is tight, but the supply of the group is sufficient. "There are low-priced stocks and will support good customers."

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