Samsung Electronics Semiconductor D-RAM Market Share Increased Further
[Asia Economy Reporter Changhwan Lee] In the first quarter, the market share of South Korean companies such as Samsung Electronics and SK Hynix in the global semiconductor DRAM market increased.
According to market research firm TrendForce on the 16th, Samsung Electronics recorded a 44.1% share of the global DRAM market based on sales in the first quarter. This is a 0.6 percentage point (p.p.) increase from 43.5% in the fourth quarter of last year.
SK Hynix, ranked second, showed a 0.1 p.p. rise to 29.3% during the same period. Combined, Samsung Electronics and Hynix's market share in the first quarter reached 73.4%, up 0.7 p.p. from 72.7% in the previous quarter.
Micron, a U.S. company that, along with Samsung Electronics and SK Hynix, oligopolizes the global DRAM market, saw its market share decline. It dropped 1.5 p.p. from 22.3% in the fourth quarter of last year to 20.8% in the first quarter of this year.
However, based on sales, all three companies experienced declines due to the impact of the novel coronavirus disease (COVID-19). Samsung Electronics' DRAM sales decreased by 3.3%, from $6.761 billion in the fourth quarter of last year to $6.537 billion in the first quarter of this year.
During the same period, SK Hynix's sales fell 4.3%, from $4.537 billion to $4.341 billion, and Micron's sales dropped 11.1%, from $3.469 billion to $3.083 billion.
TrendForce explained that although memory product prices rose in the first quarter, product shipments were delayed due to COVID-19.
The similar situation is expected to continue into the second quarter. It is understood that all three major DRAM companies maintain a conservative view on expanding supply.
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Given the increased uncertainty in product demand caused by COVID-19, it is analyzed that supply expansion will be avoided. Accordingly, product price increases are likely to continue for the time being.
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