Samsung, Hynix gain share in shrinking DRAM market

Mon May 11, 2009 11:14am EDT

* DRAM market fell 22.3 pct q/q in Q1 vs 40 pct fall in Q4

* Samsung Q1 market share 26.5 pct vs 24.5 pct in Q4

* Hynix Q1 market share 22.3 pct vs 20.7 pct in Q4

By Tarmo Virki, European Technology Correspondent

HELSINKI, May 11 (Reuters) - The two biggest producers, Samsung Electronics (005930.KS) and Hynix Semiconductor Inc (000660.KS), won larger shares of the shrinking market in dynamic random access memory (DRAM) chips in the first quarter, industry research firm DRAMeXchange said on Monday.

The memory chip sector, which has undergone a brutal, two-year downturn, is showing the first signs of life this year after major players made steep production cuts. Separately, Samsung said on Monday it expects shipments of DRAM chips to grow 10-15 percent in 2009. [ID:nSEO46225]

The overall market for DRAM memory chips, widely used in personal computers, shrank 22.3 percent in the first quarter, compared with a 40.8 percent fall in the previous quarter, DRAMeXchange said.

Samsung's market share increased to 26.5 percent from 24.5 percent in the previous quarter, with Hynix raising its share to 22.3 percent from 20.7 percent.

The third and fourth biggest producers, Elpida 6665.T and Micron MU.N, lost some share in the quarter and held, respectively, 15.3 and 15.2 percent of the market, the research firm said.

Due to Qimonda's QMNDQ.PK bankruptcy filing and revenue declining 55 percent in the first quarter, Nanya Technology (2408.TW) jumped to fifth place in the market.

In January Germany's Qimonda became the first major chipmaker to file for insolvency as a result of huge industry price drops and the global financing squeeze.

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