Samsung edges closer to DRAM disaster

[Alpine]

Could lose face, place to Hynix, DRAMit!

GIANT CHAEBOL Samsung's lead as top gun in the DRAM industry has fallen to a seven year low.


That's the clear implication of the latest DRAM research from Gartner Dataquest.

Samsung has held the title of Dramurai-in-Chief since 1992, when it toppled Toshiba but now there's a clear possibility that upstart Hynix may take the top position which would be a clear loss of face.

According to Andrew Norwood, research vice president of semiconductors at Gartner Dataquest, Samsung is in clear danger of failing to meet its growth targets this year because of oversupply and worsening market conditions which are expected to last well into 2008.

Although NAND flash is likely to be more profitable in the second half of this year, Norwood said Samsung has no plans to switch production to this potential cash cow.

Hynix overtook Samsung in terms of bit shipments in Q1 2007.

Said Norwood: "It looks like the DRAM industry is returning to classic market share battle with little regard for profitability, and all vendors are going to suffer."

That, he added, means business as usual. Here, courtesy of Gartner Dataquest are the preliminary vendor figures for DRAM revs worldwide for Q4 2006 and Q1 2007 in millions of dollars.

The INQuirer