Winbond Sees Widening Gaps for NOR Flash Memory Supply

Source: PixabaySource:Pixabay

Winbond Electronics Corporation (華邦電子), a Taiwan-based leading global supplier for semiconductor memory solutions announced investing NTD$ 12.7 billion (roughly US$ 450 million), an increase of over 60% from an expenditure of NTD$ 7.9 billion last year at an earnings call Friday.

Brutal winter storms severely struck Texas resulting in power outages has brought the NOR Flash production line of Cypress and Samsung located in Texas Austin to a halt.

Infineon completed the acquisition of Cypress last year, acquiring an 8-inch fab manufacturing automotive and industrial MCU and NOR flash. The interrupted production is estimated to impact up to 5% of global supply designated to the automotive and internet markets.

Since Q4 last year, NOR flash production has struggled to meed demands. Winbond production capacity for NOR flash has been fully loaded up to Q2 this year, which is likely to reflect a price rise by 10% in the second and third quarter respectively.

Winbond President Pei-Ming Chen (陳沛銘) explains that a series of global events from coronavirus to tensions between China and the US along with the heated 5G and AI technology has driven the semiconductor industry to boom. The memory unit providers will follow similar patterns. 

He pointed out main speciality memory suppliers such as Samsung, had transformed their DRAM production lines to produce CIS in a wave of expectations for driverless cars to the markets. Some China-based NOR Flash manufacturers had turned to produce logic chips. Customer-end had diversified needs into wearable devices, TV and IoT which generates larger gaps to meet various demands of the market.

With increasing end products variations and fewer memory suppliers, the demands will continue to outstrip supply to the second half of 2021.


Source: udn, anue

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