DRAM Q2 Sales Up 6.5%... Samsung and SK Hynix Hold 71% Market Share

[Asia Economy Reporter Park Sun-mi] Amid growing concerns about oversupply in the memory semiconductor market in the second half of the year, it has been revealed that the semiconductor industry's DRAM sales in the second quarter of this year grew by 6.5% compared to the first quarter.

According to global market research firm TrendForce on the 16th, DRAM industry sales in the second quarter of this year recorded $25.59 billion, a 6.5% increase from the first quarter. Although DRAM sales in the PC and mobile sectors were hit due to inflation and weakened demand, strong performance in server DRAM led to a 5-10% increase in DRAM shipments by the industry's 'Top 3' companies.

Korean companies Samsung Electronics and SK Hynix's DRAM market share approached 71%. Samsung Electronics recorded sales of $11.13 billion, up 6.4% from the previous quarter, maintaining its market share at 43.5%, the same as in the first quarter.

SK Hynix, ranked second, saw sales increase by 7% to $7.011 billion, with its market share rising by 0.1 percentage points from 27.3% in the first quarter to 27.4% in the second quarter. Third-ranked Micron's sales increased by 9.7% to $6.271 billion. Thanks to the sales growth, the operating profit margins of Samsung Electronics, SK Hynix, and Micron in the second quarter rose to 50%, 43%, and 41.5%, respectively.

However, the market outlook for the third quarter is somewhat bleak. Memory semiconductor demand is further shrinking, and server DRAM is also suffering from the impact of the deteriorating economy, leading to a dominant expectation that semiconductor prices will decline further.

TrendForce forecasted that consumer DRAM prices could drop by up to 18% in the second half of this year compared to the previous quarter. This is a 5 percentage point downward revision from the previous estimate of a maximum 13% decline quarter-over-quarter. Furthermore, it is expected that consumer DRAM prices will fall an additional 3-8% in the fourth quarter compared to the third quarter. Consequently, a decline in sales for leading DRAM companies such as Samsung Electronics and SK Hynix in the second half of the year has become inevitable.