According to TrendForce, Samsung is still the leader in the NAND flash memory field. In terms of revenue, its share of the global DRAM market accounts for 41.3% from July to September. However, this is a decrease of 2.2% relative to the previous quarter. TrendForce said that Samsung’s revenue from DRAM chips totaled $7.21 billion in the third quarter of 2020. This is also a decrease of 3.1% from the previous quarter.
Read Also: Samsung Galaxy Z Fold3 will be its first under-display camera phone
Samsung’s competitor, SK Hynix Inc., ranks second with a market share of 28.2%, a decrease of 1.9% QoQ. Also, its revenue fell 4.4% from the previous quarter to $4.92 billion.
“Samsung and SK Hynix’s quarterly revenue declined because their respective shipment growth was small and not enough to make up for the decline in their respective average selling prices (ASP).”
Gizchina News of the week
American manufacturer, Micron Technology Corporation, ranks third. The company’s market share in the third quarter jumped to 25%, an increase of 4% from the previous quarter. In addition, its revenue increased by 21.9% from the previous quarter to $4.3 billion.
DRAM market prices will rise again in Q4 2020
Furthermore, TrendForce said: “Micron’s average selling price in the latest fiscal quarter has declined slightly. In addition, Micron has also benefited from a substantial increase in shipments and a reduction in fixed costs per bit.”
In general, DRAM suppliers have generally been hit by the decline in prices in the industry due to server manufacturers’ weak chip purchases.
Samsung’s operating margin in the third quarter remains at 41%. And because server DRAM occupies a considerable share of its product portfolio, SK Hynix’s operating profit margin fell to 29%, a decrease of 6%s over the same period.
In the third quarter, global DRAM revenue increased by 2% from the previous quarter to $17.46. The DRAM market in the fourth quarter is expected to be similar to the third quarter.
TrendForce said: “The continued weakness of the server DRAM market will continue to put pressure on the overall unit price of DRAM products. Therefore, in the fourth quarter of 2020, both shipments and prices will rise again“.
Overall, Samsung is not doing badly. The South Korean manufacturing giant has always been on top of the DRAM market. Its target in this segment is to make sure it doesn’t lose sight of the top spot globally.