Where Micron’s 20nm DRAM Technology Fits into the Embedded Space
Micron Forecasts Breakthroughs, but Will 2016 Be a Breakout Year?
Micron’s value-added solutions in the embedded space
Micron Technology (MU) is packaging memory solutions based on the way the specific data is treated by the user—a strategy that ensures product enablement. While DRAM (dynamic random access memory) caters to most of the memory needs of computing, NVM (non-volatile memory) caters to most of the needs of embedded space. Micron thus packages DRAM and NVM with eMCPs (embedded multi-chip package) to deliver product enablement. But how much can the embedded segment boost demand for 20nm DRAM products and NVM products?
Automotive
According to IC Insights, automotive is the fastest growing semiconductor end market because advanced driver assistance systems are expanding beyond premium cars. For this reason, Skyworks (SWKS), NXP Semiconductors (NXPI), and NVIDIA (NVDA) reported such strong double-digit growth in the automotive segment in calendar 4Q15. Micron likewise expects DRAM and NVM demand from automotive to grow at a CAGR (compounded annual growth rate) of 40% and 30%, respectively, between 2016 and 2019.
Industrial and consumer
The use of semiconductors is increasing with ongoing growth in connectivity, the need for security across connected devices, and real-time analysis. Thus, Micron expects DRAM and NVM demand from industrial segment to grow at a CAGR of 30% and 40%, respectively, between 2016 and 2019.
Meanwhile, the use of 4k is increasing in digital TVs and set-top boxes, increasing the demand for memory. Micron thus expects DRAM and NVM demand from the consumer segment to grow at a CAGR of 25% each between 2016 and 2019. Notably, the Market Vectors Semiconductor ETF (SMH) has exposure to 26 semiconductor stocks, including ~3.1% to MU, ~3.7% in NVDA, ~4.6% to NXPI, and ~4.1% to SWKS.
Now let’s return to Micron’s mobile memory solutions for a clearer understanding.
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