74
REGIONAL ROUNDUP
Micron bucks weak NAND
market conditions
The company sold $300 million worth of NAND flash memory in the second quarter.
This is an increase of 11.9% from $268 million in the first quarter, the largest
percentage and revenue growth of the top 7 suppliers ranked by iSuppli.
M
icron’s industry crucial factors in driving down costs,” 2008 NAND annual flash revenue growth
leading observed Nam Hyung Kim, chief analyst forecast from 9 percent to virtually zero.
performance was and director at iSuppli. “Micron has Unless NAND prices stabilise during the
all the more remarkable given the rapidly increased its 300mm wafer forth quarter, even such flat growth may
generally weak conditions in the NAND capacity and the 32nm geometry will not be possible this year.
flash market in the second quarter. Global boost its profitability in the near future, “The flash industry is abuzz with talk
NAND flash memory revenue declined to as well as its productivity. Because of its about Solid State Drives (SSDs) and
$3.36 billion in the second quarter, down aggressive production ramp, Micron now other emerging applications that could
2.5 percent from $3.45 billion in the first is challenging Hynix for the market’s No. drive new NAND demand,” Kim said.
quarter. Five of the Top 7 NAND suppliers 3 spot; and by the first half of 2009 likely “However, none of these applications is
posted either declines or zero growth in will be in a position to vie with industry expected to change the momentum of the
revenue compared to the first quarter. leaders Samsung Electronics. and Toshiba NAND business any time soon. With the
No. 4 ranked Micron’s share of global Corp in terms of profitability.” gloomy economic outlook, excess
NAND revenue market increased to 8.9 Because Hynix is expected to focus inventory, slow orders and weak consumer
percent in the second quarter, up from 7.8 mainly on DRAM throughout 2008, its spending, the NAND market will remain
percent in the first. Micron in the second NAND market share gap with Hynix will under pressure for the foreseeable future.
quarter trailed No. 3 ranked Hynix of narrow further iSuppli believes. With its extensive use in consumer
South Korea by only 4.5 percentage Significantly, the only other company oriented products like MP3 players and
points, down from 7.2 percentage points besides Micron to achieve sequential digital still cameras, NAND is highly
in the first quarter. NAND memory revenue growth in the susceptible to changes in macroeconomic
The attached figure presents iSuppli’s second quarter was its manufacturing conditions.”
worldwide ranking of NAND flash partner, Intel. Intel posted a 4.8 percent iSuppli now believes the global NAND
suppliers in the second quarter. increase in revenue, giving it a market flash per megabit Average Selling Price
Micron’s market share advance share of 5.2 percent, up from 4.8 percent (ASP) will decline by about 60 percent in
reflects its aggressive production ramp of in the first quarter. 2008, compared to its previous forecast
300 millimetre (mm) wafers and its plan Due to intense competition and the of a 56 percent decline. No 1 NAND flash
to migrate nearly half of its NAND flash slowdown of the economy, the NAND memory supplier Samsung in the second
manufacturing to the 34 nanometre (nm) flash market has been experiencing a quarter maintained its market lead with a
process geometry by the end of 2008, sharp downturn since the beginning of 42.3 percent share of global revenue. The
iSuppli believes. 2008. iSuppli early this year warned that company was the only profitable NAND
“In the memory world, process the NAND market would experience a supplier during the second quarter due to
migrations and wafer scale are two challenging 2008. iSuppli now has cut its its diverse product lines, iSuppli believes.
iSuppli Table: Global NAND Revenue Market Share Ranking in the Second Quarter (Ranking by Revenue in Millions of U.S.
Dollars)
www.euroasiasemiconductor.com Mid-September 2008
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