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DRAMeXchange reports 2Q08 NAND Flash QoQ declines 9%

7 August 2008 Semiconductors

Taipei, August 5, 2008 --- According to DRAMeXchange, discouraged by a consistent weak demand for consumer electronics and plunge of consumer confidence index, sales of global branded NAND Flash vendors declined 9.0% QoQ at US$2.90bn in 2Q08. Both ASP and sales volume were on the downhill trend in the quarter. A fundamental demand weakness has also aggravated over supply condition, as evident in the divergent trend of QoQ bit growth (+10%) and ASP (-15%).

Table 1. Sales of branded NAND Flash vendors, 2Q08

RankCompany2Q08 sales (US$m)2Q08 Market Share (%)2Q08 Sales QoQ Growth (%)1Q08 Sales (US$m)1Q08 Market Share (%)
 Total2904 -9.0%3191 
*Note: Renesas/PSC have gradually phased out the branded sales of their AG-AND Flash since 2Q08.
*Note: 2Q Average Exchange Rate
Source: DRAMeXchange, August, 2008

Samsung ranked as the largest NAND Flash vendor with a sales amount of US$1.14bn, translating to a market share of 39.4%. Toshiba ranked as the second-largest vendor at a sales amount of US$770mn, translating to a market share of 26.8%. Hynix followed as the third on a sales amount of US$495mn with market share of 17%. And Micron along with Intel took the fourth and fifth place, respectively, with a market share of 8.4% and 6.0%.

Samsung has exposed to a consistent weak ASP pressure as seasonal slow impact intensified. Sales growth of end products such as MP3 player and memory card eroded considerably, down from 1Q’s 48% to 2Q’s 17%. Also, a relatively high inventory level at channels has also weighed on ASP, as evident in a QoQ sales drop of 11.1 %.

Toshiba’s performance has also dampened by a sluggish demand for consumer electronics and exchange loss from Japanese yen. Despite sales volume grew, ASP trend lagged behind affected overall sales. 2Q sales have declined by 9.1% QoQ.

Being the third-largest NAND Flash vendor, Hynix has seen its bit growth dropped by 15% QoQ after executing its capacity trim. However, Hynix still managed to have its market share maintained at 17%. 2Q sales, meanwhile, have dropped by 13% QoQ.

DRAMeXchange analysts indicate that Micron and Intel are the two vendors that saw their output steadily growing in 2Q, despite sales either posted a mild growth (Micron +9.9%) or decline (Intel -2.8%) on a fundamental demand weakness and downward-trending ASP. Numonyx has also seen its sales down by 12.5% QoQ at US$70mn, translating to a market share of 2.4%.

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