Samsung Expands Lead in DRAM Market in Q2, Report Finds
Samsung led a booming DRAM storage market in the second quarter of 2010, thanks to aggressive technological investment, according to an iSuppli report.With revenue of $3.8 billion in the second quarter, Samsung's DRAM revenue expanded by 24.3 percent from $3.1 billion in the first quarter, the highest growth rate among the top five suppliers, according to a report from semiconducter market research firm iSuppli. The rise gave Samsung a 35.4 percent share of global DRAM revenue in the second quarter, up from 32.6 percent in the first quarter. The firm credited Samsung's aggressive investment in advanced manufacturing technology, which allowed the company to outproduce competitors and expand its lead in the global DRAM technology market. The strategy has "paid off in spades," the firm noted in a report. Samsung in the second quarter produced 1.2 billion 1Gbit-density-equivalent DRAM units, up 13 percent from 1.1 billion in the first. The company's DRAM ASP was $3.13 in the second quarter, compared to the industry's DRAM price average of $3.03.
"Samsung's memory business long has pursued a strategy of taking the leadership in investment in new manufacturing processes, allowing it be the first to move to advanced semiconductor process geometries, and thus enabling the company to make semiconductors at a lower cost and at greater efficiency than its competitors," said Mike Howard, senior analyst for DRAM technology at iSuppli. "The company's aggressive push into 40nm semiconductor lithography for DRAM manufacturing boosted the volume of its bit production dramatically. Meanwhile, Samsung's broad DRAM portfolio, including high-end devices like mobile and legacy parts, allowed it to achieve an Average Selling Price (ASP) higher than the industry average."