Global DRAM revenue increases 40.7 percent in 3Q09

TAIPEI, TAIWAN: According to DRAMeXchange, with the aggressive DDR3 migration in PC-OEMs and enhancing demand, DDR3 contract price sharply rose 36 percent in line with the 24 percent increase of spot price.

Fig. 1Source: DRAMeXchange
Note: Fig. 1 -- For Samsung 3Q09 DRAM revenue, we approximately derived the resulted by deducting LSI revenue from semiconductor based on the assumption that DRAM revenue accounts for 58 percent in memory sectors and 3Q09 average exchange rate is $1 against KRW$1,237.5. We apply this estimation to other vendors by indicating 77 percent for Hynix total revenue, 54 percent for Micron, 85 percent for PSC, 80 percent for ProMOS, 95 percent for Nanya and 84 percent for Winbond under the following exchange rate: US$1 against NT$32.8, US$1 against JPY$93.5.

DDR2 contract price also hiked along with the DDR3 contract price that 3Q09 DDR2 contract price has rose 31 percent due to the tight supply in DDR2 and DDR2 inventory replenishment from some PC-OEMs. DDR2 spot price also rose 30 percent in 3Q09 as well.

Benefited from the 36 percent rising DDR3 contract price, 24 percent rising DDR3 spot price and 30 percent rise DDR2 price, DRAM vendors record the average 15~55 percent quarterly revenue growth. Samsung and Powerchip achieved 50 percent revenue growth target, which is far better than the market average.

According to DRAMeXchange, 3Q09 DRAM revenue increased 40.7 percent to $5,719 million. Samsung continue its unchallenged leadership in the DRAM industry recorded in $1,781 million DRAM revenue in 3Q09 with 51 percent QoQ, while market share has climbed 2.1 percent to 31.1 percent given the upward pricing trend in contract price, 50nm technology migration and raise DDR3 portion.

During 3Q09, Hynix's DRAM sales rose 42.1 percent to $ 1,318 million given the 26 percent average price growth and 12 percent quarterly bit growth. Currently, Hynix ranks at 2nd place and its market share has been increased 0.2 percent to 23 percent.

Elpida recorded 3Q revenue in $1,026 million with 37.6 percent QoQ benefited from 19 percent upward DRAM quarterly average price and 13 percent bit growth. Elpida has strengthened its no. 3rd market leading position given the larger gap between Elpida and Micron in 2Q09.

For the different accounting period (3Q for Micron is Jun., Jul. and Aug.) it applied for the accounting periods, contract price merely rose 8 percent compared with the last periods (Mar., Apr. and May). Benefiting from the price and 19 percent QoQ shipment enhancement in this quarter, Micron recorded $705 million quarterly revenue with 28 percent QoQ.

Micron would grab 4th place in the ranking, while its market share has declined to 12.3 percent in 3Q09 from 13.5 percent in 2Q09 given the below industry average revenue growth.

As for the Taiwanese vendors, Nanya ranks at 5th position along with $334M DRAM revenue and 45.3 percent QoQ given the upward pricing trend in average quarterly price (35 percent) and 5 percent quarterly shipment growth.

Benefited from the 30 percent boosting DDR2 spot price and 82 percent utilization rate from 41 percent, PSC shows an amazing 52.9 percent revenue growth in 3Q09 and its market share has slightly increased 0.3 percent.

Winbond announced its 3Q09 DRAM revenue as $146 million with 43.7 percent QoQ. The market share has climbed to 2.6 percent. ProMOS also demonstrates 15.3 percent QoQ revenue pattern with the upward pricing trend as well.

The Korean vendor’s share was 55.1 percent in 3Q09 and their leadership position remained unchallenged while shares from Taiwanese, Japanese and American vendors has had various declines, respectively.

The market share of Taiwanese vendors has slightly declined 0.1 percent to 14.2 percent, while the market share of Japanese vendors shrunk 0.6 percent to 18.2 percent. Given the below-average growth that the American vendor has, its market share has been declined 1.4 percent to 12.5 percent.