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Q2 2012: WorldWide NAND Flash Memory market share, Samsung expands lead.
The worldwide NAND flash memory market posted revenues of US$4.22 billion in the second quarter of 2012, down 11.9% sequentially, according to DRAMeXchange. Samsung Electronics continued to lead the market with its share expanding to 42.4% in the second quarter.
Second-quarter NAND bit shipments increased 13% on quarter while ASPs fell by approximately 22%, DRAMeXchange said. Overall demand was weak causing an oversupply situation during the quarter.
"As the eurozone debt crisis lingers and global economic recovery is progressing slowly in the second quarter of 2012, the NAND flash market is seeing a harsher off-peak season than usual, with demand below manufacturers' expectations," DRAMeXchange noted in a statement.
Samsung's NAND revenues amounted to about US$1.8 billion in the second quarter of 2012, showing a 10.1% sequential increase. In comparison, the number two player Toshiba had US$953 million in NAND revenues, down 39.4% on quarter. Toshiba took a 22.6% share of the market in the second quarter, compared to 32.9% in the prior quarter.
Samsung in the second quarter moved to reduce its chip supply to the memory card and USB flash drive market, and raise that to fulfill more OEM orders for system products including smartphones, tablet PCs and SSDs. As a result, Samsung managed to grow its NAND revenues in the second quarter offsetting weakness in the memory card and USB flash drive market, DRAMeXchange observed.
Samsung reported an about 35% sequential rise in NAND bit shipments during the second quarter, with ASP slipping 18%, DRAMeXchange said. The firm saw its market share climb to more than 40% from 33.9% in the first quarter.
Second-ranked Toshiba suffered sequential decreases in both shipments and ASPs during the second quarter, which led to a significant drop in revenues, DRAMeXchange indicated. Toshiba's share of the global NAND flash market shrank from 32.9% in the first quarter to 22.6% in the second, DRAMeXchange said.
Micron Technology came in third place with a 15.4% share of the market in the second quarter, followed by SK Hynix with 11.9% and Intel with 7.8%, according to DRAMeXchange.
NAND Flash: Samsung Market
Share Expands to 42.4%,
As the eurozone debt crisis lingers and global economic
recovery is progressing slowly in the second quarter of2012, the NAND flash market is seeing a harsher off-peak
season than usual,with demand below manufacturers’ expectations.
Aside from stable demand from certain tablet PC and smartphone clients in
preparation for new models release, the majority of system product have
not shown strong demand; thus, suppliers have no choice but to adopt
promotional strategies, lowering prices to stimulate purchasing.
According to DRAMeXchange, a research division of TrendForce, with the
NAND flash market experiencing oversupply, although brand
manufacturers’ bit shipments increased by 13% QoQ in the second quarter
of 2012, average selling price (ASP) fell by approximately 22% QoQ. As a
result, NAND flash branded manufacturers’ total 2Q12 revenue fell by 11.9%
QoQ, arriving at US$4.221 billion.
Looking at the 2Q12 sales ranking for branded NAND Flash manufacturers,
Samsung remained in first place with US$1.7 88 billion, 42.4% market share;
Toshiba took second place with US$953 million, 22.6% of the market;
Micron came in third with US$648 million, 15.4% of the market. SK Hynix
was fourth at US$503 million, 11.9% of the market; and Intel placed fifth
with US$330 million, 7 .8% of the market.
In the second quarter Samsung strategically lowered the sales ratio of
memory card and UFD market products, which have been experiencing
weak demand, increasing OEM orders for smart phones, tablet PCs and SSD
products instead to increase revenue from system product clients.
Furthermore, benefitting from depreciation of the Korean won, 2Q12 bit
shipment volume increased by approximately 35% QoQ, while ASP fell by
around 18% QoQ. Thus, Samsung’s 2Q12 revenue climbed 10.1% QoQ to
US$1.7 88 billion, taking 42.4% market share. Although Samsung
anticipates the supply-demand status will improve in the third quarter due
to the arrival of new smart mobile devices and slower bit supply growth, the
maker will continue to devote its efforts to increasing sales of embedded
products such as eMMC, mSATA, and SSD.
Additionally, the Korean manufacturer plans to reallocate its Austin fab’s
NAND flash product line to the production of LSI products in order to slow
bit output growth, in preparation for the possibility that global economic
uncertainty will negatively affect the peak sales season in the second half of
Thus, Samsung’s bit output for the third quarter is projected to increase by
over 5% QoQ; the maker’s 27 nm and 21nm process product output ratio
reached 80% in the second quarter, and they will continue increasing the
production ratio of 21nm products in the third quarter.
Affected by sluggish demand due to the off-peak season and slow global
economic recovery in the second quarter, the orders from some system
product, memory card and UFD customers were lower-than-expected in
2Q12. The ASP and bit shipment of
Toshiba both declined in 2Q12. Thus, Toshiba’s 2Q12 revenue declined
about 39.4% QoQ in 2Q12, taking 22.6% market share with a revenue of
The majority of Toshiba’s production has been upgraded to
24nm and 19nm process technologies, and the maker will continue to
increase the output ratio of 19nm process products in the third quarter to
strengthen cost competitiveness.
The supplier will also strive to increase the sales portion of embedded
products like eMMC, mSATA, and SSD, to meet inventory stocking demand
for new smartphone, tablet, and ultrabook models hitting the market in the
second half of the year.
Additionally, on July 24 Toshiba announced a temporary 30% capacity cut
at its owned Yokkaichi site, in hopes of easing the impact from delayed third
quarter demand from inventory restocking and global economic
uncertainties as well as helping the industry achieve balanced supply and
demand prior to the peak sales season in the fourth quarter.
In its previous fiscal quarter, Micron’s ASP fell by 39% QoQ due to the offpeak
season effect, product mix adjustments, and promotional sales
strategies. However, benefitting from system client OEM orders and an
increased sales ratio for SSD products, Micron’s bit shipment volume
jumped by approximately 68% QoQ, resulting in a revenue of US$648
million for the last fiscal quarter, taking 15.4% market share.
As the supplier will continue increasing the production ratio from the new
20nm process, the maker expects its bit output for the next quarter will
increase by over 5% QoQ. Expecting smart phone, tablet PC, and ultrabook
demand to increase significantly in the second half of the year, Micron will
continue to increase the sales ratio of embedded products such as eMMC,
mSATA, and SSD.
In the second quarter SK Hynix increased system product client sales to
lower the negative impact from sluggish memory card and UFD market
demand. Furthermore, benefitting from depreciation of the won, 2Q12 bit
shipment volume increased by around 9% QoQ. However, as ASP dropped
19% QoQ, SK Hynix’s 2Q12 revenue fell by approximately 8.6% QoQ to
US$503 million, taking 11.9% market share.
As SK Hynix’s system products bit shipment ratio has already reached 85%
in the second quarter, the maker will continue to increase the sales ratio of
embedded products such as eMMC, mSATA, SSD etc. in the third quarter.
Furthermore, SK Hynix will change their capacity plans for its 300mm Fab
M12 depending on actual market demand in the second half of 2012; the
new capacity of 40K starts per month initially dedicated to NAND flash
production will be used to flexibly manufacture both NAND flash and DRAM
products, in an effort to slow NAND flash output growth in the face of a peak
season that may not see traditional figures due to global economic
Thus, SK Hynix expects its 3Q12 bit output will grow by over 5% QoQ.
Looking ahead to the third quarter, the Korean maker anticipates the
market will see balanced supply and demand as market supply decreases
and new smart phone and SSD models hit the market. SK Hynix’s 26nm and
20nm production ratio is nearing 90%, and in the third quarter the maker
will continue increase 20nm output.
As a result of harsh competition on the SSD market, Intel’s ASP fell by around 20% QoQ, while bit shipment volume rose by approximately 15% QoQ. Thus, Intel’s 2Q12 revenue fell by 9.6% QoQ to US$330 million, conve rte d by We b2PDFC onve rt.com
representing 7 .8% of the market. In the third quarter Intel will continue to
increase both the sales ratio of SSD and mSATA products and the output
ratio for the new 20nm process.