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SK Hynix hits all-time high of 30% in DRAM market

By Korea Herald

Published : Aug. 9, 2013 - 20:56

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SK Hynix’s market share in the global DRAM industry has hit an all-time high, surpassing 30 percent for the first time, data showed.

The South Korean memory chipmaker’s DRAM sales reached $2.56 billion in the second quarter of this year, an increase of 40.7 percent from the first quarter’s $1.82 billion. With the share reaching 30 percent from 26.5 percent during the period, the company retained its world No. 2 title, according to Taiwan-based market researcher DRAMeXchange on Friday.

This helped narrow the gap between SK Hynix and Samsung Electronics, the world’s top memory supplier, to less than 3 percent.

Samsung Electronics’ DRAM sales in the second quarter stood at $2.79 billion, up 7.7 percent from the first quarter’s $2.59 billion. Its market share fell from 37.8 percent to 32.7 percent. The ease of PC DRAM oversupply concerns sent the price up, driving SK Hynix’s sales, a relatively large proportion of which is PC DRAM for production, industry sources said.

Samsung Electronics saw its modest increase in total sales as the company focused on mobile DRAM whose price has been in a downward trend. PC DRAM as a proportion of total DRAM output amounted to less than 20 percent while that of SK Hynix accounted for 40 percent.

The average price of 4 GB DRAM for computers rose to $27.25, up 16 percent from $23.50 in the first quarter, while that of mobile DRAM dropped by 5-8 percent in the same period.

Ahead of Elpida Memory, ranked third, and Micron Technology, ranked fourth, SK Hynix’s market share in the second quarter painted a rosy picture of its prospects in the global DRAM market. Micron Technology with 15.2 percent market share recently completed acquisition of Elpida, which has 12.9 percent market share.

Total sales in the D-RAM market in the second quarter grew 24.2 percent to $8.531 billion, up from $6.87 billion in the first quarter.

“SK’s impressive performance largely stemmed from the rise in D-RAM price for computers. As PC D-RAM oversupply concerns seem to be eased and the production of mobile D-RAM is also expanding, the company will continue to see stable growth,” an observer said.

By Shin Ji-hye (shinjh@heraldcorp.com)