Samsung, Hynix Capture Larger Share Of Falling DRAM Market

Samsung and Hynix increased their shares of the worldwide DRAM market during the first quarter of 2009, but the market as a whole dropped significantly from the previous quarter.

DRAMeXchange, a Taiwan-based analyst firm, reported on Tuesday that Samsung's DRAM revenue rose by 26.5 percent in the first quarter of 2009 compared to the previous quarter, letting it keep its position as the world's largest DRAM manufacturer.

Korea-based Hynix, the second-largest DRAM manufacturer, reported a growth in DRAM revenue in the first quarter of 22.3 percent over the previous quarter.

The top-five list of DRAM vendors was rounded out by Tokyo-based Elpida Memory; Fremont, Calif.-based Micron Technology and Taiwan-based Nanya Technology.

However, the DRAM market as a whole dropped 22.3 percent from fourth quarter 2008 to first quarter 2009, DRAMeXchange reported.

Nonetheless, Reuters reported on Monday that Samsung expects overall market shipments of DRAM chips to grow between 10 percent and 15 percent in 2009.

The fall in revenue during the first quarter was a result of several factors, DRAMeXchange reported.

A primary factor was a drop in contract prices to about 80 cents per GB, which DRAMeXchange said was near the materials cost for DRAM manufacturers. This included a drop in DDR2 DRAM prices of about 25 percent in the first quarter of 2009.

Other factors included a cutting of DRAM manufacturers' capacity, a drop in demand from PC manufacturers and the bankruptcy of Munich, Germany-based DRAM manufacturer Qimonda during the first quarter.