Global DRAM revenue increases 15.2 percent in 2Q10

TAIWAN: According to DRAMeXchange, the research division of Trendforce, the global 2Q10 DRAM industry recorded $10.70 billion, which is 15.2 percent QoQ growth compared of $9.29 billion in 1Q10.

The revenue growth is contributed by the stable raising DRAM contract price and mild output growth. With slightly upward pricing trend for 2Q10 DRAM contract price, 2Q10 DDR3 2GB contract price went up 10 percent QoQ, while the 2Q10 DDR3 spot average price mildly declined 3 percent QoQ to $2.77. Though DDR2 1Gb spot price shows deeper downtrend, the DDR2 output is significantly lower in this quarter.

As for the capital expenditure, DRAM vendors focus more on technology migration instead of capacity expansion. According to DRAMeXchange, 2Q10 wafer starts to increase by 3.8 percent QoQ only and the output has increased by around 10 percent.

According to DRAMeXchange, Samsung reached 33.9 percent market share in terms of revenue with 19.1 percent QoQ revenue growth. With the smooth technology migration progress, 46nm and 56nm products has entered mass production level with stable yield rate.Source: DRAMeXchange.

Samsung’s output will continue strong momentum in 2H10. Benefited from Rexchip’s smooth migration and additional 40M 1Gb contributed from PSC starting April, Elpida's revenue increased 18 percent QoQ in 2Q10. Micron’s F3Q10 (ends June 3, 2010) revenue growth rate is 10 percent contributed by 9 percent QoQ ASP increase.

As for Taiwanese vendors, PSC showed 15 percent QoQ revenue growth to $510 million in 2Q10. Nanya slightly improved revenue with 10 percent QoQ growth and is likely to show more potential in terms of revenue with the strategy in capacity expansion and technology migration. ProMOS recorded 53.4 percent QoQ revenue growth, benefitting from achieving full capacity ramp.

Korean vendors’ market share reached 55.3 percent and remains unchallenged. They also maintained their leadership status in DRAM industry. American and Japanese DRAM makers’ shares are recorded at 13.7 percent and 18.3 percent, respectively, followed by Taiwanese with 12.7 percent share.Source: DRAMeXchange.