SAN JOSE, Calif. – Amid a DRAM upturn, South Korea’s Samsung Electronics Co. Ltd. has extended its lead in the segment, according to Gartner Inc.’s DRAM rankings for the second quarter. (See below for table)
''Samsung Electronics strengthened its position due to strong bit growth, taking its share of the market to just over 35 percent, almost its highest market share ever. Other major vendors saw only slight changes to their share,’’ said Andrew Norwood, an analyst with Gartner, in a report.
Samsung was first in the rankings, followed in order by Hynix, Elpida, Micron, Nanya, Powerchip, ProMOS and Winbond, according to Gartner.
''Further down the rankings, Nanya Technology recaptured the No. 5 position it had lost the previous quarter to Taiwanese rival Powerchip Technology. This was because of a sharp drop in Powerchip's branded DRAM sales as the company adjusted its foundry relationship in 2Q10 that it has with Elpida, increasing shipments to the Japanese company,’’ Norwood said. (In order not to double count industry revenue, Gartner tracks branded DRAM sales and excludes these foundry sales.)
Overall DRAM market revenue was up 12.6 percent quarter over quarter to $10.7 billion and up 135 percent compared with the same period last year, according to Gartner. This is the highest quarterly revenue since the end of 2006 and the fourth highest quarterly revenue the industry has seen since Gartner started to track the DRAM industry in 1974.
Samsung's DRAM rivals are in trouble. Samsung is simply outspending the competition. As reported, the company now plans to spend 11 trillion won ($9.6 billion) on expanding semiconductor production and 5 trillion won ($4.3 billion) on boosting LCD manufacturing.
But now, Elpida, Hynix, Micron and Taiwan Inc. are also boosting their capital spending. Business is good now. What happens when the downturn hits?
Some think Taiwan DRAM makers will survive over the long term. Some think Hynix won't. Thoughts out there?
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