Samsung retains DRAM lead in Q3, but Nanya shines

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Nov 16, 20052 mins

Samsung has 29 percent market share in global DRAM business with $1.85 billion in revenue

Despite shifting a number of production lines to NAND flash memory chips to fill demand for the iPod music players over the course of the year, Samsung Electronics has managed to maintain its position as the world’s top producer of DRAM (dynamic RAM) computer memory chips, according to market researcher iSuppli.

During the third quarter ended Sept. 30, Samsung’s share of revenue in the global DRAM business reached $1.85 billion, for a 28.9 percent market share. The chip giant soundly beat out South Korean rival Hynix Semiconductor’s $1.06 billion, which came in second place with a 16.6 percent share of the market, iSuppli said.

Micron Technology, which is based in Boise, Idaho, came in at third in global standings on DRAM revenue of $960 million and a 15 percent market share.

The biggest surprise in the quarter came from Taiwanese memory chip maker Nanya Technology. The company has expanded sales through a joint-venture chip plant it runs with Germany’s Infineon Technologies, helping boost its revenue substantially in the July through September period.

Nanya’s revenue in the worldwide DRAM market rose to $435 million, or a 6.8 percent share, up from $325 million in the second quarter, according to iSuppli. The company increased its market share by 1.1 percent during the third quarter, enabling it to close in on the global number five position held by Japanese memory chip provider Elpida Memory, which has a 7.2 percent share of the DRAM market, according to iSuppli.

Despite persistent rumors Nanya might acquire Infineon’s DRAM operations, the Taiwanese company has repeatedly denied any talks over such a deal. However, such a purchase would catapult Nanya into second place among global DRAM suppliers, based on iSuppli’s figures. Infineon’s share of global DRAM revenues was 13.9 percent during the third quarter. If that figure were combined with Nanya’s existing market share, it would reach over 20 percent.