Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/western-digital-corp" target="_blank" data-smartkarma-citation="entities:1094:1" rel="noopener">Western Digital (WDC US)</a> announced earnings on October 28, and provided a positive outlook on its business despite COVID-19 and the US-China trade war.  Demand for the company's technologies remains strong, and these challenges appear to have only a modest impact on its business.

Western Digital (WDC US) announced earnings on October 28, and provided a positive outlook on its business despite COVID-19 and the US-China trade war.  Demand for the company's technologies remains strong, and these challenges appear to have only a modest impact on its business.

Western Digital: COVID & Trade War Impacts Manageable

Thematic (Sector/Industry)

China's flagship NAND flash maker, YMTC, is already in production and certain prognosticators predict that the company will take an 8% share of the  NAND flash market in 2021.  This Smartkarma Insight evaluates the company's current status and comes to the conclusion that its success with its current endeavor is less likely than these prognosticators would believe.

China's flagship NAND flash maker, YMTC, is already in production and certain prognosticators predict that the company will take an 8% share of the  NAND flash market in 2021.  This Smartkarma Insight evaluates the company's current status and comes to the conclusion that its success with its current endeavor is less likely than these prognosticators would believe.

Is YMTC Really a Threat to the NAND Flash Memory Business?

President

Thomas Coughlin

Coughlin Associates

Seagate Technology Holdings PL / Equity Bottom-Up

Seagate is seeing a tapering off of the nearline HDD buy to support cloud services during the Covid-19 pandemic.  However, sales of these HDDs and mass storage HDDs for video and related big data applications will be continued drivers for sales into calendar 2021.  The company said that 63% of their HDD revenue in C3Q 2020 was from mass capacity HDDs, including nearline HDDs.  The company also expects some consumer rebound for HDDs in 2021.  In the long run, the conversion to majority mass capacity HDDs will raise ASPs and by 2024-2025 start to increase total HDD unit shipments, further driving revenue and profitability.

Seagate is seeing a tapering off of the nearline HDD buy to support cloud services during the Covid-19 pandemic.  However, sales of these HDDs and mass storage HDDs for video and related big data applications will be continued drivers for sales into calendar 2021.  The company said that 63% of their HDD revenue in C3Q 2020 was from mass capacity HDDs, including nearline HDDs.  The company also expects some consumer rebound for HDDs in 2021.  In the long run, the conversion to majority mass capacity HDDs will raise ASPs and by 2024-2025 start to increase total HDD unit shipments, further driving revenue and profitability.

Seagate:  Long Term Opportunities with Mass Storage HDDs

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix</a> this week <a href="https://news.skhynix.com/sk-hynix-to-acquire-intel-nand-memory-business/" target="_blank" rel="noopener">announced</a> their intention to acquire <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel's</a> NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.

SK Hynix this week announced their intention to acquire Intel's NAND memory business in a complex deal valued at $9 billion. The move comes as little surprise following comments relating to the loss-making memory division made by Intel CEO Bob Swan earlier this year. What is surprising is the structure of the deal. While $7 billion in cash will be payable once the deal clears regulatory hurdles, thought to be in lat 2021, the remaining $2 billion will only be paid on "final closure" in March 2025. What are the implications of this deal for the broader NAND industry? Is the deal a good one for both Intel and SK Hynix?  Why is the deal structured in such a complex and drawn-out fashion? Here's our thoughts.

Intel. Thoughts On The Proposed NAND Flash Sale To SK Hynix.

Breaking up WDC into a separate HDD and flash memory businesses could create two viable storage companies, that over time will provide value to very different, but potentially symbiotic, uses.  The HDD business will become enterprise and especially data center focused, while an NAND flash business will seek to gain market share as a way to moderate and better survive the NAND flash boom/bust cycles.

Breaking up WDC into a separate HDD and flash memory businesses could create two viable storage companies, that over time will provide value to very different, but potentially symbiotic, uses.  The HDD business will become enterprise and especially data center focused, while an NAND flash business will seek to gain market share as a way to moderate and better survive the NAND flash boom/bust cycles.

Potential WDC Breakup, Positive Implications

United States

Western Digital Corporation is a global provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The Company's products include hard drives, solid-state drives, and home entertainment and networking products.

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Western Digital (WDC US)

Western Digital: COVID & Trade War Impacts Manageable

Western Digital continues to perform at a level only slightly lower than normal despite challenges posed by COVID-19 pandemic and US-China trade war.

Jim Handy

Is YMTC Really a Threat to the NAND Flash Memory Business?

YMTC is China's path to semiconductor autonomy, but its current path will lead to failure. The company needs a technology partner.

Jim Handy

Seagate: Long Term Opportunities with Mass Storage HDDs

Seagate Technology quarterly results show 63% of revenue from Mass Capacity HDDs and long term mass capacity HDD growth, demonstrating medium and...

Thomas Coughlin

Intel. Thoughts On The Proposed NAND Flash Sale To SK Hynix.

SK Hynix proposed acquisition of Intel's NAND flash business comes as little surprise. What is surprising it that the deal won't finally close...

William Keating

Potential WDC Breakup, Positive Implications

WDC may be considering breaking up its HDD and NAND flash business. Find out how these separate businesses might fare on their own.

Thomas Coughlin

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