Divisional Semiconductor Growth, Q3-17

Most of the Q3-17 results of semiconductor companies have been published and it is time to take a look at the divisional growth of the top Semiconductor companies. The results already show that semiconductor revenue growth is dominated by price increases in the memory market favouring companies like Hynix, Micron and Samsung.

 

 

The Hynix DRAM and Micron Computing divisions have experienced extraordinary growth and reveal both the product and the market hotspot. The data centre market is on fire and has an insatiable hunger for memory. In particular, the DRAM market is heated – Hynix experienced twice the DRAM growth than NAND. The skew between DRAM and NAND is a result of the last few years investment strategies of prioritising NAND over DRAM. The memory companies have all been surprised by the increase in DRAM demand – they expected the world to convert to flash.

 

 

 

A shift in the Semiconductor Market

Nvidia’s Tegra division has the highest growth of non-memory divisions together with AMD’s computing and graphics division. Also, Nvidia’s GPU division is not far behind. This is by far the largest division of the three and growth is driven by GPU sales to the Datacenter. The Datacenter revenue is up by 114%. This result is revealing that the DRAM hunger is created by the growing need for Artificial Intelligence in the Cloud Data Centre.

 

 

Removing the large memory companies from the list gives a deeper look at the divisional growth:

  • The good divisional results from On Semi and Renesas are driven by acquisitions.
  • The results of the Broadcom storage division also indicates growth in the data centre.
  • Wireless, Industrial, Analog, IOT and sensors are high on the list.
  • Embedded micro has done reasonable but below market growth.
  • The automotive business has been disappointing despite much talk.

 

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