Micron Places Second in Global Mobile DRAM Market in 1Q 2014, Says TrendForce

Worldwide Mobile DRAM revenue for 1Q 2014 dropped 34.3% QoQ to US$ 2.915 billion, representing 29.3% of total DRAM output value, according to DRAMeXchange, the memory and storage research division of TrendForce. The average selling price for Mobile DRAM, which only experienced a slight 5% downward adjustment during 1Q 2014, has been falling at a slower rate, mainly due to the recovered PC DRAM capacity at SK Hynix's Wuxi Plant, which subsequently lowered Mobile DRAM industry value. 

Looking at the 1Q 2014 Mobile DRAM ranking, Samsung currently ranks first with nearly 50% of the market, whereas Micron managed to beat SK Hynix to the second spot with a total market share of 26.7%. The total market shares held by Micron and SK Hynix currently differ by only 1.7%. Benefiting from contributions from Elpida, Micron is believed to have a legitimate chance of boosting its Mobile DRAM market share on a quarterly basis. Potential changes in the Mobile DRAM manufacturer rankings are anticipated to arise as SK Hynix sticks to its profit-oriented considerations and continues producing substantial volume of PC DRAM. 

The Taiwan-based DRAM manufacturers, notably, are actively seizing opportunities in the Mobile DRAM market. Other than Nanya and Winbond, companies such as ESMT and KSI (Kingston Solutions Inc), which do not directly manufacture Mobile DRAM have already begun making an impact on China’s Multi Chip Package market using their product integration strategies. These two Taiwanese companies are considered ideal alternatives chip solutions among the non-Korean DRAM makers in the industry. 

As the peak quarters gradually approaches, DRAMeXchange Assistant Vice President, Avril Wu, predicts that the Q2 global smartphone shipments will increase by 8.6% QoQ to 289.9 million units, and notes that this will help boost Mobile DRAM’s production output significantly. With the slight market oversupply situation persisting, average selling price is anticipated to remain steady and drop by only 3-5% QoQ during 2Q 2014. The total Q2 Mobile DRAM industry value has a chance to undergo further growth as prices stabilizes.