Recovery in the memory market has been expected to send prices rising, but the extent of increase in the NAND flash segment may be bigger than expected in the short term after a brief fire that broke out at a Kioxia fab earlier this week may constrain supply. The global 5G chip market is also bracing for tight supply due to insufficient 7nm foundry support. The tight supply will keep 5G SoC prices at high levels, with MediaTek likely to see gross margin rise.
Kioxia fab fire may send NAND flash prices soaring: A brief fire that broke out at Kioxia's Yokkaichi plant in Japan on January 7 may send NAND flash prices surging, according to industry observers.
Global 5G mobile chip supply remains constrained: The global supply of 5G mobile chips remains constrained, due to tight 7nm manufacturing process capacities at foundries, according to industry sources.
MediaTek to see gross margin rise: MediaTek is expected to see its gross margin improve further in the first quarter of 2020, thanks to the rollouts of its new chip solutions coupled with tight foundry capacities, according to industry sources.