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Q4'11 NAND Flash Ranking, Can We Trust the Numbers?

 

The result in the articles below for 2011 Q4 worldwide flash market sales and growth rankings are not accurate. The tables don't includes SanDisk whose total sales in 2011 was $5.66 billion.

While it is true that not all SanDisk's $5.66B is in Branded NAND, a reasonable portion of the $5.66 billion is. More details about SanDisk's results from 2008 to 2011 are available at Is Apple Squeezing Suppliers, Or Is SanDisk Simply Missing Out?


5/1/2012

Ron Maltiel

 

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NAND Flash Market Leaders Lose Share to Micron and Hynix in Q4

IHS iSuppli

30th-Apr-2012

Solid manufacturing and strong pricing allowed Micron Technology Inc. and Hynix Semiconductor Inc. to post strong performances in the global NAND flash business in the fourth quarter, allowing them to narrow the gap in market share between them and the industry leaders, and setting the stage for further advances in 2012.

No. 3-ranked Micron Technology Inc. of the United States achieved 11.7 percent revenue growth in the fourth quarter compared to the third, according to a new IHS iSuppli Data Flash Market Tracker report from information and analytics provider IHS (NYSE: IHS). Meanwhile, fourth-placed Hynix Semiconductor Inc. of South Korea expanded its revenue by 5.4 percent, as presented in the table below.

Data Flash Market Share

These strong performances contrasted sharply with the overall market’s 2.8 percent contraction. The results from Micron and Hynix were even more remarkable when compared to the 4.6 percent decline for market leader Samsung Electronics Co. Ltd., also of South Korea; and a 12.3 percent decrease for second-ranked Toshiba Corp of Japan.

“Both Micron and Hynix managed to avoid any production issues in the fourth quarter, allowing them to keep their NAND flash production at high levels,” said Michael Yang, senior principal analyst for memory and storage at IHS. “This allowed them to keep their average selling prices high. On the other hand, Samsung and Toshiba decided to throttle back production arising from concerns relating to oversupply. We believe that Micron and Hynix will continue to gain share in 2012.”

Hynix, in particular, is expected to increase its share as the company engages in capital spending at a higher rate than the industry average.

Overall, Micron’s NAND market share in the fourth quarter rose to 19.6 percent, up from 17 percent in the third quarter. For its part, Hynix saw its portion of market revenue increase to 13.3 percent, up from 12.2 percent.

The fourth-quarter performance of Micron and Hynix were also notable when compared to the same period in 2011. Revenue for Micron surged by 88 percent compared to a year earlier, while that of Hynix increased 69 percent.

Toshiba suffered the largest sequential decline of all of the NAND flash suppliers. However, the decrease was unrelated to the Japanese earthquake disaster, with the company having already recovered from the catastrophe before the fourth quarter. Instead, the company made a conscious decision to reduce production in the face of oversupplied market conditions.

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Micron, Hynix gain share in NAND Flash memory business

Solid State Technology

www.electroiq.com/content/eiq-2/en/articles/sst/2012/04/micron-hynix-gain-nand-flash-memory-share.html

April 30, 2012 -- Micron Technology Inc. and Hynix Semiconductor Inc. achieved strong NAND flash business globally in Q4 2011, thanks to solid manufacturing and pricing. The chipmakers gained market share on the NAND Flash industry leaders Samsung and Toshiba, and will continue to grow in 2012, reports IHS in its IHS iSuppli Data Flash Market Tracker.

Overall, the NAND Flash memory market contracted 2.8% from Q3 to Q4 (Q/Q). Segment leader Samsung saw a 4.6% revenue decline Q/Q. Toshiba’s NAND Flash revenues fell 12.3% in the same period. Micron, ranked third in NAND Flash memory by revenue, achieved 11.7% revenue growth Q/Q, adding 2.6% market share to 19.6%. Hynix, ranked #4, expanded its revenue by 5.4% Q/Q, adding 1.1% market share to 13.3%.

Table. Worldwide Flash market share by branded revenue. (Revenue in Millions of US Dollars). SOURCE: IHS iSuppli April 2012.

Q4 '11 Rank

Company

Q1 '10 Revenue

Q3 '11 Revenue

Q3 '11 Share

Q4 '11 Revenue

Q4 '11 Share

Q4 '11 Sequential Growth

Q4 '11 Annual Growth

1

Samsung

$1,680

$2,028

39.1%

$1,934

38.3%

-4.6%

15.1%

2

Toshiba

$1,475

$1,632

31.4%

$1,432

28.4%

-12.3%

-2.9%

3

Micron

$526

$884

17.0%

$987

19.6%

11.7%

87.6%

4

Hynix

$396

$635

12.2%

$669

13.3%

5.4%

68.9%

5

Powerchip

$6

$12

0.2%

$26

0.5%

116.7%

333.3%

 

Other

$276

$0

0.0%

$0

0.0%

NA

NA

 

Total Revenue

$4,359

$5,191

100.0%

$5,048

100.0%

-2.8%

15.8%

Micron and Hynix kept NAND Flash production at high levels, “avoiding any production issues in the fourth quarter,” said Michael Yang, senior principal analyst for memory and storage at IHS. Average selling prices (ASPs) for their chips therefore remained high. By contrast, Samsung and Toshiba “throttled back production,” concerned about a NAND oversupply.” While Toshiba suffered the largest decline in Q4 2011, IHS notes that Toshiba had already recovered from the 3/11 Japan earthquake. The decline resulted from Toshiba’s decision to reduce NAND supply.

Year-over-year (Y/Y), Micron’s NAND Flash revenue grew 88%; Hynix’s grew 69%.

In 2012, Hynix is planning higher capital expenditures than the industry average, signaling a move to increase its NAND segment share.

Also read: Hynix brings NAND Flash memory to NOR maker Spansion

IHS (NYSE: IHS) provides information, insight and analytics in critical areas that shape today’s business landscape. Access reports at www.ihs.com.

 

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