Trend Force ‘Taiwan semiconductor operation normal’ Korean securities firm ‘TSMC damaged DRAM price rises’
While market research firm Trend Force published a report titled ‘Semiconductor production normal despite Taiwan earthquake’, Korean securities firms are leading the rise in Samsung’s stock price with ‘DRAM price rise due to damage to TSMC’.
TrendForce said in a report on the 4th, “When the magnitude 7.2 earthquake occurred on the 3rd, TrendForce immediately investigated the damage and operational status of several manufacturers,” adding, “The DRAM industry mainly located in northern and central Taiwan, “The foundry industry, which is spread across the central and southern regions, appears to have suffered little initial damage,” he said.
The report concluded, “Trend Force concluded that DRAM spot prices may rise slightly in the short term, but the continuation of this trend is uncertain due to continued weak demand,” adding, “DRAM suppliers and module factories are reflecting a cautious approach in the aftermath of the earthquake. “As a result, we have temporarily suspended pricing activities.”
KB Securities said on the 5th in a report on the rise in DRAM prices, “There is also damage to Micron’s DRAM production line in Taiwan,” and “Customers are expected to increase DRAM orders in the future as they are concerned about a DRAM supply shortage in the second quarter due to the aftermath of the earthquake.” .
KB Securities continued, “With demand for AI (artificial intelligence) semiconductors expected to rapidly increase over the next three years, the diversification of supply lines for advanced foundry processes below 5 nanometers is expected to rapidly occur from TSMC to Samsung Foundry starting in 2024.” Emphasis was placed on ‘price rise’.
The Trend Force report said, “Considering the increased interest in AI component supply, it is known that NVIDIA chips using the 4-nano process manufactured at TSMC’s southern Taiwan science complex did not lead to personnel evacuations,” and “Due to the need for equipment inspection, This necessitated some temporary downtime. “TrendForce anticipates that these operations will be able to resume quickly with minimal impact to supply.”
Regarding Micron production, TrendForce said, “Despite the earthquake, the spot market for DRAM and NAND flash memory has shown signs of weakening demand for several weeks. Accordingly, Micron and Nanya have experienced closures, but sufficient supply has prevented large price fluctuations. prevented. “Overall price increases were minimal and purchasing enthusiasm was low,” he said, adding that there was no possibility of price increases.
The Trend Force report continued, “Micron, whose DRAM production capacity is mainly located in Taiwan, took the lead in suspending DRAM pricing as it reevaluated its post-disaster losses in order to resume contract price negotiations in the second quarter,” adding, “Samsung Electronics and SK Hynix also took the lead in suspending DRAM pricing.” “We have stopped setting prices, but since both suppliers do not produce DRAM in Taiwan, we will monitor the direction of the market,” he said.
The TrendForce report, which is being updated in real time, said, “TSMC's advanced 5/4/3nm process plant was able to resume more than 90% operation at higher capacity utilization rates and without evacuating personnel within 6-8 hours after the earthquake, and the impact was “The CoWoS factories, particularly Longtan AP3 and Zhunan AP6, reopened immediately after evacuation despite inspection showing some water damage to the cooling units. Thanks to backup facilities, operations were unaffected and resumed later. “It’s done,” he said.
In the article <"Are we finally going to 100,000 electronics?"... Surprising performance of '10 times operating profit'>, MBC said, "Samsung Electronics' main DRAM price also stopped falling and turned to an upward trend due to the effect of production cuts by memory suppliers. It was reported on the 5th, “In the securities market, there are a series of analysis reports suggesting that Samsung Electronics can reach the so-called ‘100,000 electronics’ mark, such as KB Securities suggesting a target stock price of 110,000 won for Samsung Electronics.”
Samsung Electronics' first quarter operating performance fell by KRW 1 trillion to KRW 71 trillion, which is lower than the KRW 71.9541 trillion sales predicted by securities companies, but the Korean media, together with securities companies, induced a '100,000 electronics stock buying boom' and only reported an increase in operating profit by 5%. The work was highlighted.
100,000 Electronics, DRAM, KB Securities, TSMC, Taiwan Semiconductor, Taiwan Earthquake, Samsung Electronics, securities company, Trend Force, Foundry