Ranking of own-brand DRAM sales revenue of the top 10 DRAM makers in Q406

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2007-02-01 08:47

Taiwan--(뉴스와이어)--Based on market research firm DRAMeXchange's observations, the sales revenue of the global DRAM brand makers in Q406 grew 16.2% QoQ (Figure 2). Supply in the DRAM contract market remained tight, where the mainstream DDR2 contract price significantly helped spur the sales increase. Revenues breakdown by regions in 4Q06 reveals that the Korean makers continue to assume the leading role by capturing 44.6% of the DRAM market share. Taiwanese makers come in second, accounting for 17.8%. This was lower than the 19.5% share recorded for Q306. Many of the newly operational fabs in 2H06 were located in the Taiwan area. However, Taiwanese branded companies still experienced a slide in their market share for Q406, as the increased output were sold to their respective strategic partners.

Sales breakdown by companies in 4Q06 shows a stellar performance by Hynix. Employment of the 80nm manufacturing process and production ramp up from its 12 inch fab located in the Chinese city of Wuxi, helped boost its revenue growth to 45% Bit growth jumped to 31%. For Q406, Hynix acquired a 20% market share, increasing its lead over Qimonda. The revenue and bit growth for Elpida respectively reached 28% and 25%. The growth was mainly attributed to Powerchip¡¦s 12M fab, and the increased output from its E300 12 inch fab in Hiroshima.

After the DRAM industry¡¦s downturn in 2000, DRAM makers gradually started to focus in expanding their production capacities. According to data compiled by DRAMeXchange, 6 new 12 inch fabs became online in 2006. Some of the fabs were newly constructed, while others were converted from 8 inch fabs. This increased the number of 12 inch fabs around the globe to 23. As each player races to expand their share of the pie, more fabs are being planned for construction. By 2007, it is expected that the number of 12 inch fabs will reach 27.

Several DRAM makers have forged strategic alliances with each other to boost their DRAM production. At the same time, they are also allocating resources in building their own 12 inch fabs. These developments are causing a market shakeup in the DRAM sector. From Figure 3, it can be seen that companies who have formed a joint venture, are starting to squeeze Samsung¡¦s market share. Micron, who has a high ratio of 8 inch fabs, is also seeing a declining market share. From the 20% share in 2005, it has slid to 11% in Q406, according to the firm.

Like the Prisoner Dilemma in game theory, amid the aggressive expansion, DRAM makers also face the risk of risking an oversupply.¡¨ said DRAMeXchange. In order to survive in this cutthroat business, DRAM makers must utilize more advanced process technology, and take advantage of the more economical 12 inch fabs to further reduce their production costs.

About DRAMeXchange

DRAMeXchange is a global primary provider of future intelligences, in-depth analysis reports and advisory services on DRAM and Flash memory industry with coverage including current business, spot trading prices, and market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

Founded in 2000, DRAMeXchange serves more than 50,000 clients, including high level company officers, procurement salespersons as well as technology firms and investment community. DRAMeXchange supports IT industry executives, memory related companies, and the investment communities to make fact-based decisions on memory purchases and deploy business strategy. Information about DRAMeXchange and its researches can be found at www.DRAMeXchange.com.

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