Powerchip Technology announced plans to cut its total PC DRAM output in half, and perhaps even more. The move is intended to slow, stop, or even reverse the massive slide in revenues that were recorded in August, and in the meantime, Powerchip will look to other markets as it tries to increase its bottom line.
We've been extensively following the ups and downs (mostly downs) of the DRAM market, and that's one business we're glad we're not a part of. Back in late 2008, A-DATA chairman Simon Chen said the DRAM market was the worst it has been in 15 years, and things haven't gotten a whole lot better since then.
Making the best of a bad situation, Samsung in the third quarter of 2010 became the only Top 5 DRAM supplier to achieve revenue growth, positioning itself as the dominant chip maker, market research firm iSuppli said. Samsung sold $4.4 billion worth of DRAM in the third quarter, up 14.3 percent from $3.8 billion in the second. Here's how it breaks down for everyone else:
Hynix: $2.24 billion Q3/ $2.31 billion Q2
Elpida: 1.73 billion Q3 / $1.91 billion Q2
Micron: $1.12 billion Q3 / $1.14 billion Q2
Nanya: $439 million Q3 / $473 million Q2
"Samsung has been vocal about its desire to expand its DRAM market share to as high as 50 percent," said Mike Howard, senior analyst for iSuppli. "The third-quarter results show Samsung has put its money where its mouth is. By investing heavily in expanding product and advancing its manufacturing technology, the company has been able to cut pricing and to eat into the market share of its competitors."
Samsung increased its market share from 35.4 percent in Q2 to 40.7 percent in Q3 and is on track to reach its goal in 2011.