South Korean memory giants defended near 70 percent in global shipments of DRAM chips powering computers and data centers in the first quarter amid softer demand and prices, while SK hynix shares have retreated.

According to global market research institution Omdia, Samsung Electronics earned $10.3 billion from DRAM sale in the first quarter in the second consecutive quarterly fall from $11.5 billion in the third quarter last year.

Its share in the DRAM market however added 0.8 percentage point to 42.7 percent as of March.

The fixed prices of mass-market DRAM chips fell 8.1 percent in January after 9.5 percent in October last year.

Other factors such as the Russia-Ukraine War and China’s Covid lockdowns softened demand.

No. 2 DRAM player SK hynix reported $871 million fall in first-quarter DRAM sales of $6.56 billion. Its market share retreated 3 percentage points to 27.1 percent.

No. 3 Micron Technology of the United States recorded $6.03 billion in DRAM sales in the first quarter of this year, gaining $575 million from the previous quarter to see its market share gain 2.7 percentage points to 24.8 percent.

The market size of the global DRAM market also declined for two consecutive quarters after hitting a record high of $26.2 billion during the third quarter last year, shrinking to $24.25 billion during the first quarter this year.

The outlook for the global DRAM business for the second half of the year remains negative. Market intelligence provider TrendForce revised the DRAM price decline from 3-8 percent to 5-10 percent for the third quarter due to inflation and the economic recession.

“If manufacturers decided to adjust their memory chip inventories due to concerns about future computer and smartphone sales, DRAM prices will continue to decline during the latter half of the year,” said Lee Seung-woo, the head of the research center at Eugene Investment & Securities.

Shares of Samsung Electronics lost 0.85 percent to 58,300 won ($44.41) and SK hynix 0.85 percent to 92,900 won during Tuesday morning trade.

By: DocMemory
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