Production cuts hit DRAM factory Q1 revenue Samsung still tops Micron rises to second place
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Update time : 2023-08-08 11:40:55
Semiconductor industry in general downturn, Samsung Electronics in the first quarter of this year, the DRAM market still maintains the leading position, while SK Hynix by Micron to catch up, slipped to third place.
Market research firm Omdia released on August 6, data show that Samsung Electronics in the first quarter of the global DRAM market to maintain the leading position, market share of 42.8%, flat with the previous quarter; SK Hynix DRAM market share in the first quarter fell 2.3 percentage points from 27.0% in the previous quarter to 24.7%, the industry rankings from the second place slipped to third place; Micron ranked second with 27.2% market share.
Samsung Electronics' DRAM sales in the first quarter fell 61.2% year-on-year to $4.013 billion, shrinking 25.2% sequentially, the report said. The decline was mainly attributed to the continued decline in the semiconductor market.
SK Hynix's decline in market share was mainly due to its proactive implementation of production cuts to mitigate the impact of falling DRAM prices.
As for the NAND memory market, NAND flash sales halved to $2.99 billion in the first quarter compared to the same period last year, but Samsung Electronics still achieved a 0.4-percentage-point YoY increase in market share to 34.3%, a market that also includes mainly Japan's Armor (KIOXIA, 19.5%), the U.S.'s Western Digital (Western Digital 15.9 percent) and SK Hynix (including its subsidiary Solidigm, 15.1 percent). SK Hynix's NAND market share fell 1.7 percentage points from 16.8 percent in the previous quarter, causing it to slip from third to fourth place in the industry rankings.
The NAND market is expected to downsize further due to lower profitability compared to DRAM and persistently high inventory levels. According to industry sources, the demand for AI applications has led to a recovery in demand for high-end DRAMs such as DDR5 and HBM, compared to the lack of strong and robust demand for NAND flash memory and the lack of demand recovery, necessitating production cuts to counteract price declines and losses.
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