Samsung leads NAND market ranking in Q2

The NAND flash memory market remained constant in Q2, but Samsung Electronics Co. Ltd's ranking stood as the only profitable supplier during the period, according to iSuppli Corp.

Meanwhile, Intel Corp. is trailing near the back of the pack in the rankings. Samsung stayed at the top post in the NAND share in Q2, followed in order by Toshiba, Hynix Semiconductor Inc., Micron Technology Inc., Intel, Numonyx and Renesas Technology, according to iSuppli.

Global NAND flash memory revenue declined to $3.36 billion in Q2, down 2.5 percent from $3.45 billion in Q1, according to the research firm. "Five of the top seven NAND suppliers had either declines or zero revenue growth during the period," it added.

The NAND flash market has slid sharply at the start of 2008. iSuppli has reduced its 2008 NAND annual flash revenue growth forecast from 9 percent to virtually zero.

Hitting the mark
"Based on the recent rankings, Samsung maintained its number 1 position in the NAND market with 42.3 percent market share recorded during Q2 08," said iSuppli. In the quarter, it added Samsung's NAND sales hit $1.422 billion, down 1.9 percent from the first period. (See rankings table)

Toshiba Corp. holds the second position in the NAND market ranking with 27.5 percent market share recorded during Q2 08, it noted. "During the quarter, Toshiba's NAND sales hit $925 million, down 1.8 percent from the first period," said iSuppli.

"Hynix takes the third spot in the NAND market with 13.4 percent market share recorded during Q2 08," said iSuppli. "Its NAND sales hit $450 million, down 13.1 percent from the first period," it added.

"Micron holds fourth place in the NAND market with 8.9 percent market share recorded during the Q2 08, with NAND sales of $300 million, up 11.9 percent from the first period," it noted.

The fifth post belongs to Intel Corp. in the NAND market with 5.2 percent market share having sales of $174 million, up 4.8 percent from the first period.

iSuppli said Micron narrowed its NAND flash memory market-share gap with Hynix, setting the stage for a battle for the industry's third rank this year.

The research firm believes that as Hynix is seen to concentrate mainly on DRAM throughout 2008, its NAND market share gap with Hynix will be lesser.

''In the memory world, process migrations and wafer scale are two crucial factors in driving down costs,'' said Nam Hyung Kim, analyst, iSuppli, in a statement.

"Micron has rapidly increased its 300mm wafer capacity and the 32nm geometry will boost its profitability in the near future, as well as its productivity. Because of its aggressive production ramp, Micron challenges Hynix in the market's third spot. By 1H 09, it is likely to compete with industry leaders Samsung and Toshiba based on profitability,'' he added.

The DRAM rankings did not change in Q2 08, but Elpida Memory Inc. is gaining ground on Hynix. Amid a major downturn in the sector, Samsung was still in first place in the DRAM rankings for Q2, followed in order by Hynix, Elpida, Micron, Qimonda AG, Powerchip Semiconductor Corp., Nanya Technology Corp., Promos, Etron Technology Inc. and Winbond Electronics Corp., according to iSuppli.

- Mark LaPedus
EE Times