Samsung leads the way in DRAM space

Samsung has been leading the way for the DRAM market, according to iSuppli, expanding to $3.8 billion in the second quarter up 24.3 percent from $3.1 billion in the first quarter – the highest growth rate among the top five.

The giant has now got a 35.4 percent share of the global DRAM revenue over Q2, again up from the previous quarter which was at 32.6 percent. Samsung’s boost comes as DRAM grew exponentially in the second quarter, hitting $10.8 billion up from $9.4 billion in the first.

There has been roughly a five percent increase in bit shipments and a nine percent rise in the average selling price (ASP) also driving growth. All shipments hit the highest ever level at 3.56 billion 1Gbit-equivalent units – complementing the $3.03 average selling price for parts, the highest since Q3 2008.

Rank Vendor Q1 10 revs Q1 10 share Q2 10 revs Q2 10 share % change
1
Samsung
$3,072
32.6%
$3,819
35.4%
24.3%
2
Hynix
$2,048
21.7%
$2,314
21.5%
13.6%
3
Elpida
$1,626
17.2%
$1,913
17.7%
17.7%
4
Micron
$1,375
14.6%
$1,432
13.3%
4.1%
5
Nanya
$423
4.5%
$473
4.4%
11.8%
 
Others
$884
9.4%
$832
7.7%
-5.9%
 
Total
$9,428
100%
$10,783
100%
14.4%

Revenues in millions of $US

Elpida Memory was still in the top five enjoying a 17.7 percent revenue increase hitting $1.9 billion compared to $1.4 billion in the first quarter. Micron posted the weakest growth in the second quarter among the top 5, revenue rising only 4.1 percent to $1.43 billion up from $1.38 billion in the previous quarter – iSuppli thinks the slow growth is mainly down to manufacturing problems at the Inotera facility. Its market share slipped to 13.3 percent.

DRAM prices have been dropping and migration is slow according to a recent report by DRAMeXchange. Contract prices have been steadily dropping and an oversupply means big players may fare fine, as Samsung, Hynix and Elpida managed reasonable gross margins. But growing companies would be wise to strategise.