As the demand for NOR Flash continues to grow in markets such as smart phones, advanced driver assistance systems (ADAS), and the Internet of Things, Cypress Semiconductor has been busy with orders and tight with production capacity. There is news that Cypress Semiconductor may raise the NOR Flash price in the second quarter. Insiders pointed out that the first-tier manufacturers take the lead in price increases, MXIC, and Winbond may follow up to adjust the prices.
Because NOR flash is required for smart phones to carry OLED panels to store program codes, the NOR Flash market was in short supply last year and prices have risen. In the first quarter of this year, due to the smart phone production chain entering the inventory adjustment stage, the NOR Flash market balances supply and demand. No longer rising, but there is no pressure to see downward pressure. Only some of the low-capacity NOR Flash market has lowered prices due to increased production capacity of Chinese manufacturers.
Since the second quarter, the NOR Flash market has seen gradual improvement. First, Android camp smart phones have begun to enter the spare parts season. As OLED panel market penetration increases, NOR Flash demand has seen a rebound. The second is that Intel has increased the NOR Flash capacity for storing BIOS from 64Mb/128Mb to 256Mb in the eighth generation Core processor platform. Therefore, the supply of medium- and high-capacity NOR Flash is tight.
In addition, the demand for NOR Flash from automotive electronics and the Internet of Things is also clearly improving. Since the new models introduced by various depots this year are equipped with ADADA systems including LiDAR, AEB, TPMS, and road offset warning, the demand for NOR Flash is rapidly increasing. Warming. In addition, Internet of things terminal devices, including smart water meters or meters, industrial 4.0 automation equipment and so on, still use NOR Flash to store program code, and also make industrial-standard NOR Flash in short supply.
In the NOR Flash market, the top four companies, including Cypress, MXIC, Micron, and Winbond, have not had large-scale expansion of production capacity since last year. With the market demand entering the busy season from the off-season, the shortage of stocks has been renewed. Float on the countertop. Take the example of the first-line maker Cypress. In the second quarter, the NOR Flash was almost completely ordered by customers. The production capacity was severely in short supply, and the price had increased compared with the previous quarter. The industry believes that the lead time of MXIC and Winbond NOR Flash is obviously longer and may follow up the price increase.