Samsung, Hynix continue to lead DRAM sales

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Monday 18 February 2013]

Samsung Electronics and SK Hynix continued to dominate the global market for DRAM chips in the fourth quarter of 2012, with the pair's combined market share reaching 67%, according to DRAMeXchange.

Samsung accounted for 42%, or US$2.89 billion, of the global DRAM market in the fourth quarter, while Hynix' share stood at 25%, said DRAMeXchange. The size of the worldwide DRAM market came to US$6.87 billion in the fourth quarter, up from US$6.43 billion in the third, DRAMeXchange disclosed.

Elpida Memory and Micron Technology took a combined 24.6% share of the global DRAM market in the fourth quarter, DRAMeXchange indicated. As Micron will complete its merger with Elpida later in 2013, the US firm will be able to compete head-to-head with Hynix, DRAMeXchange believes.

A pick-up in demand for DRAM chips from PC makers previously pushed spot prices of 2Gb DDR3 to almost US$1.40. Prices already went up nearly 30% during the fourth quarter of 2012, resulting in an almost 7% rise in output value for the global DRAM industry, DRAMeXchange said.

On the supply side, DRAM makers will continue to allocate more available capacity to produce mobile DRAM and server memory chips, according to industry observers. As a result, even if end-market demand remains soft, PC makers will likely step up their pace of procurement to replenish inventory in anticipation of their suppliers' limited output, the observers pointed out.