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
Essess completes Street View with IR heat maps
January 23, 2015
Back in 2011, Professor Sanjay Sarma from the Mechanical Engineering Department at MIT and Co-Founder of US startup Essess, ...
Technology available, application wanted
Open source to flood IT in 2015
Asia leads automotive innovation
Samsung, Apple dominated chip buying in 2014
French startup expands 3D to the room
January 22, 2015
With still 26 days to go, Kickstarter project Immersis from French startup Catopsys has almost reached its funding goal of ...
Fraunhofer develops MEMS optical grating for medium infrared
ARM strengthens position in safety-critical applications
Antireflective nanotextures create self-assembly surface for solar cells
- Sensing Elements for Current Measurements
- Investigating Die attach Failure in IGBTs using Power Cycling Tests
- Power Semiconductor Failure Diagnosis using Thermal Characterization and Power Cycling
- Top 5 Trends in Product Development and Test Engineering
InterviewCEO interview: Bosch's IoT startup is all about the system
Thorsten Mueller, CEO of Bosch Connected Devices and Solutions GmbH (Reutlingen, Germany), has been guiding the latest startup subsidiary of Robert Bosch GmbH since 2013 when he started the initiative ...
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
To ensure you have a good start in 2015, Freescale is giving away five of its QorIQ TWR-LS1021A Tower system modules, worth USD269 each, for EETimes Europe's readers to win.
The module is the most feature-rich and high-performance Tower system offered by Freescale, enabling compatibility and interoperability with the growing list of Tower expansion modules, offering an easily accessible...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.