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Due to massive dynamic random access memory (DRAM) price drop in the second quarter of the year, virtually all memory makers experienced sales decline by 11% - 47%. However, after managing to trim revenue loss, Samsung Electronics has considerably solidified its market share during the period.

Figures released on Friday by DRAMeXchange indicate that an over 40% average sales price (ASP) slash of DDR2 512Mb chips in Q2 2007 resulted in a 24.4% quarter-over-quarter sales decline among global branded DRAM makers in the quarter. But in spite of revenue decreases, the vast majority of manufacturers still follow their CapEx plans, continuously 12” wafer capacity and migrating to 70nm process. As a result, DRAMeXchange reports about 23% quarter-over-quarter (QoQ) supply bit growth in Q2 2007 amid 24.4% decline in sales.

Due to its efforts to boost wafer starts, to increase the share of products made using sub-80nm manufacturing technology among commodity DRAM shipments to 50% as well as to raise the proportion of niche DRAM products to 50%, Samsung managed to keep its revenue only 12.8% below the Q1 2007 level amid 31% supply bit growth and 40% to 50% ASP drop.

Hynix, who nearly achieved Samsung’s DRAM market share last quarter, on the other hand, only saw its quarter-over-quarter bit growth reached 21% in Q2 2007. With more memory production was assigned for commodity DRAM, ASP reduced by 43% quarter-over-quarter and sales slipped by 30%. It still tops as the number-two DRAM maker worldwide, but it now pretty far from Samsung Electronics.

DRAMeXchange observes that most DRAM makers have their QoQ DRAM supply bit growth at over 20% in Q2 2007 only. Since such manufacturers are mostly focused on commodity DRAM production, the price plummet as seen in the previous quarter whittled down their influences. With more Taiwan-based DRAM makers having fresh 12” wafer capacity onboard in the second half of 2007, and more chips to be fabricated on 70nm under cost concern, the global DRAM market is going to see a fundamental structure change in accordingly, DRAMeXchange said.


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