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April 26, 2017

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DRAM output value forecast at US$45.5 billion: research

TAIPEI, Taiwan -- Output value of Dynamic Random Access Memory (DRAM) is likely to reach US$45.5 billion this year, up 30 percent from a year ago, according to market research company TrendForce.

According to TrendForce's statistics, output value of DRAM reached close to US$10 billion in the first quarter, up by 2 percent from the previous one.

South Korea-based SK Hynix Inc. has regained momentum after the fire that broke out in their plant in mainland China, the research company said. Sales grew 21 percent in the first quarter and the company has recouped a market share of 28.2 percent, the second largest in the world. Operating income grew from 29 percent to 36 percent, the best performance among DRAM makers.

Due to a decline in price, Samsung Electronics' DRAM sales performance dropped 7 percent in the first quarter. Nevertheless, the company remains the leader in the industry and holds a 35.5-percent market share.

The U.S.-based Micron Technology adopted a rather safe strategy, and its sales leveled in the first quarter. However, as the company has made some adjustments to its product lines, its profits continue to grow.

Domestic manufacturer Nanya Technology (南科) also has had a good year so far, sources said. While its revenues dropped 8 percent in the first quarter, profit grew 34 percent.

Winbond Electronics' (華邦) revenues grew 6.2 percent quarter-by-quarter. The company has upped capital expenditure this year in an effort to improve operational efficiency. Lower cost is expected to translate into a 25-percent growth in operating income.

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