Friday, March 21, 2014
As the release of the smartphone with the 64bit application processor (AP) is delayed, the DRAM market suffered a direct blow.
At first, it was expected that the 64bit AP would be widely used in premium smartphones starting with the Galaxy S5 and lead the demands for the mobile DRAM. However, it appears that the 64bit AP smartphone will be released in the second half of this year or early next year. The semiconductor industry seems concerned that the sagging demands for the mobile DRAM would spread to the entire memory semiconductor market.
According to industry insiders on March 19, most Android smartphone makers like Samsung Electronics (SEC) are putting off their schedule for commercializing the 64bit AP.
After the 64bit AP was first applied to the iPhone 5S by Apple last year, it was expected to become the basic performance of premium smartphones. However, companies in the Android camp cannot bring themselves to use the 64bit AP. The 64bit AP is not compatible with the Google Android OS yet.
Apple is building the best system from the OS through the AP architecture design to hardware. That’s why Apple was able to commercialize the 64bit AP early. On the other hand, the Android OS must support diverse APs and various kinds of hardware at the same time. OS upgrade cannot but be outpaced by development of APs.
Qualcomm has already unveiled the 64bit Snapdragon, and SEC is known to have almost developed the 64bit AP. If the OS problem is solved, it appears that Android smartphones will not have much difficulty adopting the 64bit AP.
The delayed commercialization of the 64bit mobile AP impacted on the DRAM market. 1~2GB mobile DRAMs are used in 32bit AP smartphones, but 64bit AP smartphones come with 3GB or bigger DRAMs. Memory semiconductor makers established the mobile DRAM production plan for this year in consideration of the demands for the 64bit AP. As demands are not picking up, the Q2 contract prices of mobile DRAMs are expected to go down.
The mobile DRAM market impact is directly affecting the DRAM market for PCs and servers as well. While Chinese and Taiwanese PC makers are keeping a low level of DRAM inventory, demands are not increasing as much as expected. If semiconductor makers convert their production lines from mobile DRAMs to DRAMs, the prices are forecast to drop further. Last month the DRAM contract price fell by about 12% from the previous month.
Actually, SEC and SK Hynix are known to consider switching part of their mobile DRAM lines to DRAM production lines.
“The effect of new smartphones on the mobile DRAM market is not as great as thought,” said a securities analyst. “In the first half, the demands for not only mobile DRAMs, but also DRAMs will continue to be sluggish.”
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
