After acquiring Elpida, Micron would becomes No. 2 DRAM supplier, says IHS iSuppli
July 03, 2012 // Julien Happich
With its planned purchase of Elpida Memory Inc. of Japan, U.S.-based Micron Technology Inc. will become the world's second largest supplier of dynamic random access memory (DRAM), according to new calculations based on first-quarter rankings from the IHS iSuppli Memory & Storage service.
Micron had been ranked the No.-4 global DRAM supplier in the first quarter, with $759 million in revenue and a 12.2 percent share of the market. The company placed behind top-ranked Samsung Electronics Co. Ltd., No. 2 Hynix Semiconductor Inc., and No.-3 Elpida. But with the purchase of Elpida, Micron’s revenue and market share in the first quarter would jump to $1.5 billion and 24.8 percent. This would allow Micron to edge out Hynix for the No.-2 position.
“The purchase of Elpida represents a huge boost for Micron’s status in the DRAM industry,” said Mike Howard, senior principal analyst for DRAM & memory research at IHS. “Micron will see its market share and DRAM manufacturing base nearly double as a result. Furthermore, Micron is gaining access to some excellent mobile DRAM technology, which should greatly improve its product portfolio. The $2.5 billion sale price is reasonable and shouldn’t impact Micron’s cash position adversely. It will likely take at least six months for the deal to close, but IHS expects a very quick transition and integration once it does.”
Micron’s acquisition announcement follows news of the bankruptcy of Elpida. The consolidation of the DRAM market set off by Elpida’s bankruptcy and the subsequent purchase by Micron is bringing new stability to DRAM pricing, helping lead renewed growth to the market.
Global DRAM industry revenue this year is forecast to reach $30.5 billion, up 3.3 percent from $29.6 billion in 2011. Although seemingly small, the revenue expansion for 2012 is a welcome development given the market’s stunning 25 percent contraction last year. The overall picture will continue to brighten during the next few years, as shown in the figure attached, with DRAM revenue exceeding $30 billion each year for the next five years and reaching $39 billion in 2016.
Before Elpida’s bankruptcy, the DRAM industry in 2011 had been bedeviled by excess DRAM manufacturing capacity, which drove down prices and caused revenue to decline. Compounding the difficulties last year was the October flood in Thailand, which depressed PC shipments—a traditional DRAM stronghold. The perceived scarcity of hard disk drives pummeled PC sales and thereby DRAM demand; and the paucity of hard drives meant PC manufacturers were paying more for storage—leaving even fewer dollars to spend on DRAM.
Visit IHS iSuppli at www.ihs.com All news
Intel, Micron launch "bulk-switching" ReRAM
July 28, 2015
Intel Corp. and Micron Technology Inc. have launched a new class of non-volatile memory that they have called 3D Xpoint and ...
Demand for radar systems boosts Infineonís chip production
'Test city' opens for autonomous cars
AMS buys environmental sensor business from NXP
World first: Samsung monitor integrates inbuilt wireless charging
Breakthrough for really cost-efficient fuel cells in sight?
July 27, 2015
Researchers from Georgia Institute of Technology have developed a manufacturing technique for platinum nanocages that can ...
Pelican makes lay-offs, refocuses on depth sensing
SK Hynix starts 3D NAND flash production
Analog design and the age of digital correction
- Test environment for the positioning elements of wearable devices
- Automotive Circuit Protection using Littelfuse Automotive TVS Diodes
- Top 5 Challenges for testing Today's Consumer Electronics
- Critical Requirements in High Speed Signal Generation Applications
InterviewGlobalfoundries' CEO on why FD-SOI and why now
With its latest news Globalfoundries Inc. has not only confirmed itself as a supporter of the fully-depleted silicon-on-insulator (FD-SOI) approach to IC manufacturing but that it also thinks sufficiently ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, Novelda is giving away two full XeThru Inspiration kits worth 1499 US Dollars each, for EETimes Europe's readers to experiment first hand with its XeThru technology.Based on the use of radio waves, rather than infrared, ultrasound or light, the company's X2M1000 Inspiration modules can detect presence just from the chest movement while breathing, and measure both the rate and... MORE INFO AND LAST MONTH' WINNERS...
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.