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Samsung Leads DRAM Market with 41% ROI

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According to TrendForce, Samsung remains the leader in NAND flash storage. In terms of revenue, from July to September its share in the global DRAM market is 41.3%. However, this is 2.2% less than in the previous quarter. TrendForce reported that Samsung’s third-quarter 2020 DRAM chip revenue was $ 7.21 billion. This is also 3.1% less than in the previous quarter.

Samsung’s rival SK Hynix Inc. ranks second with a market share of 28.2%, down 1.9% from the previous quarter. In addition, its revenues fell 4.4% from the previous quarter to $ 4.92 billion.

“Samsung and SK Hynix’s quarterly revenues declined because their supply growth was small and insufficient to offset the decline in their average selling prices (ASP).”

The third place is taken by the American manufacturer Micron Technology Corporation. The company’s market share jumped to 25% in the third quarter, up 4% from the previous quarter. In addition, revenues were up 21.9% quarter-on-quarter to $ 4.3 billion.

DRAM market prices to rise again in Q4 2020

In addition, TrendForce reported:

“Micron’s average selling price has declined slightly in the last fiscal quarter. In addition, Micron has also benefited from a significant increase in shipments and lower fixed cost per bit. ”

Overall, DRAM vendors have been hit by falling prices in the industry due to server makers not purchasing chips.

Samsung’s operating margin remains at 41% in the third quarter. And with server DRAM taking up a significant share of its product portfolio, SK Hynix’s operating margin fell to 29%, down 6% over the same period.

In the third quarter, worldwide DRAM revenue increased 2% from the prior quarter to $ 17.46. It is expected that the DRAM market will not change much in the fourth quarter and will remain at the level of the third.

TrendForce stated:

“The continued weakness of the server DRAM market will continue to put pressure on the overall DRAM unit price. Therefore, in the fourth quarter of 2020, both supplies and prices will rise again. “

Overall, Samsung is doing well. The South Korean manufacturing giant has always been the market leader in DRAM. His goal in this segment is not to miss the first place in the world.

Source: gizchina

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