Semiconductors . . . SiliconStrategies reports that after a period of huge OEM demand for nonvolatile memories, the supply and demand picture for the sector is expected to reach equilibrium in the second half of 2004, with a potential glut slated for select products in 2005. According to the article, for months, OEMs have faced shortages and allocation of flash memories, based on both NAND and NOR technologies. NAND-based flash has been especially hot, as some vendors are reportedly sold out until the third quarter of this year, according to analysts. "We believe supply constraints should ease somewhat in 2H/04 when new entrants including Infineon and ST/Hynix begin to ramp up production, but total demand should be ahead of supply," said Satya Chillara, an analyst with RBC Capital Markets. "In 2005, we are forecasting a slight 3 percent oversupply environment driven by 120% bit supply growth," he said. Asked when the supply/demand picture for NAND will reach equilibrium, Tom Quinn, vice president of memory sales and marketing for Samsung, said: "We don't think that will happen until 2005." To keep up with huge OEM demand, Samsung is doubling its flash capacity and rolling out a 90-nm flash line.
CE Unterberg downgrades RF Micro Device to Short-Term Market Perform from Buy, as they believe that margins will take a hit due to the company's aggressive ramp of its poorly-yielding LFM PA3146 quadband PA module; also, firm says that non-handset wireless products (WLAN, Bluetooth, GPS) are lackluster, and while early EDGE socket wins at leading OEMs look promising, they don't see material revs until 2005.
SG Cowen believes Integrated Device is likely to report results at the high end of its +4-9% Quarter/Quarter revenue growth range when it releases results for 1st quarter in late April. Firm believes that management was overly conservative in giving guidance on its mid-quarter update and could have tightened guidance to the higher end of the range instead of keeping it unchanged at +4-9%. Based on firm's checks, the strength seen at mid-quarter continued through to the end of the quarter.
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