Sales in the global DRAM market in the first quarter of 2015 fell 7.5% from the fourth quarter of 2014 on lower chip prices and weak end-market demand, according to DRAMeXchange.

Revenues of the global DRAM industry totaled US$12 billion in the first quarter of 2015, falling from about US$13 billion in the prior quarter, said DRAMeXchange. The price tracker attributed the revenue decrease to a 11% sequential decrease in average DRAM contract prices and a seasonal slowdown in both the notebook and smartphone markets.

Ken Kuo, assistant VP of DRAMeXchange, indicated that DRAM makers managed to maintain their gross margin in the first quarter by making progress in their technology transitions, although seasonal factors dragged down their revenues during the quarter.

Kuo also noted that weak end-market demand resulting in DRAM price decreases has raised some concerns among DRAM makers. "How well the DRAM makers have done on technology migration and adjusting product mixes will be critical for their successful performances this year," Kuo said.

South Korea-based Samsung Electronics and SK Hynix continue to hold a majority of the global DRAM market. The pair grabbed a combined 70.4% share of the market in the first quarter of 2015, DRAMeXchange disclosed.

Samsung has achieved stable yield rates on its 20nm process. The node is expected to account for nearly 60% of Samsung's total output by the end of 2015, DRAMeXchange said.

SK Hynix has been in mass production of its 25nm DRAM memory, enabling it to reduce costs and mitigate the impact of falling chip prices, DRAMeXchange said.

Micron Technology's migration to 20nm process technology has not progressed as expected, and a significant portion of the company's output still comes from the 30nm process, DRAMeXchange noted. Micron will need to speed up the technology transition to prevent unfavorable prices affecting its profits any further, Kuo suggested.

DRAMeXchange forecast that revenues of the DRAM industry will total US$51.2 billion in 2015, an increase of nearly 12% on year.

By: DocMemory
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