South Asian Branch: Dram Demand Heated To Third Quarter Q4 Observed Capacity Changes

According  to the micro-network news, Nan Yake, a maker of memory chip makers in  Taiwan, held a law meeting yesterday (17th), announcing that the gross  profit margin rushed to 51.8% in the first quarter of this year, which  was better than market expectations. Li  Peixi, general manager of South Asia Branch, analyzed that the gross  profit margin rose sharply in the previous quarter, mainly due to DRAM  prices and the proportion of 20-nanometer products quickly pulled up,  but because the hands of the current quarter held more than 40 billion  equivalent US dollars, with the NT appreciation of the previous quarter  was about 2.6 %, resulting in a loss of 1.178 billion yuan in exchange losses, eroding the net profit of more than 0.3 yuan per share.

Li  Peixi said that in the first quarter, the average price of DRAM  increased by 6.1%, plus sales volume increased by 8.4% in the quarter,  sales ratio of 20nm accounted for more than 60% and R&D expenditure  deferred. %, quarterly increase of 2.1 percentage points.

As  for the future trend of the DRAM market, Li Peiyi expects that supply  will be in short supply before the third quarter. In the fourth quarter,  it will be necessary to closely monitor the increase in production  capacity of the major manufacturers. With the current situation, both  South Korean Samsung and SK Hynix are expected to regard market demand. It is expected that this year's DRAM market conditions will be healthy and stable.

At  the same time, South Asia Branch announced that it had revised its DRAM  sales volume for the whole year to an annual growth rate from the  original 45% to 48%, and this quarter's sales volume has increased by  more than 15% quarterly; the 20nm production capacity has shifted  slightly by 1,000 pieces. With  30-nanometer products, the monthly production capacity dropped from  38,000 to 37,000; the 30-nm monthly production capacity increased to  31,000. At the same time, the self-developed 10 nm is planned as scheduled and is scheduled for small-scale production in 2020.

In  response to the fluctuation of the New Taiwan dollar, South Asia Branch  adopted the strategy of balancing the balance between the US dollar and  NT$ cash. He  expects this season will be reduced due to exchange rate factors. It is  optimistic that the average unit price of DRAM in the quarter is  expected to increase by one-digit percentage, plus the continuous  increase in the contribution rate of 20-nanometer process products and  the cost reduction, the gross margin has the opportunity to continue to  write a new high, and Have the opportunity to go all the way up to the third quarter.

Talking  about the impact of the Sino-US trade war, Li Peixi believes that this  is a means by which both China and the United States want to force each  other to the negotiating table. If a consensus is reached, the Chinese  mainland will pay more attention to intellectual property rights, which  should bring positive effects to the DRAM industry. . If  the results are not as expected, they may hit the global economy and  affect the weakening of terminal demand. Not only the DRAM industry, but  also all industries.