Gartner Says Second Quarter Worldwide DRAM Revenue Increased 20 Percent from First Quarter of 2004
STAMFORD, Conn., July 29, 2004 — Worldwide dynamic random-access memory (DRAM) revenue reached $6.7 billion in the second quarter of 2004, a 19.8 percent increase from the first quarter of this year, according to preliminary results by Gartner, Inc.
Hynix Semiconductor moved into the No. 2 position in the second quarter of 2004 with revenue totaling $1.1 billion (see Table 1). The last time Hynix held the No. 2 position was in 1999, the year Hyundai Electronics and LG Semicon merged to form Hynix Semiconductor.
"Hynix Semiconductor was one of the top performers in the second quarter," said Andrew Norwood, principal analyst for Gartner's semiconductor research group. "Hynix's strong presence in the legacy and graphics DRAM segments, which had strong pricing, enabled it to outgrow its rivals, Micron and Infineon."
In the second quarter of 2004, the DRAM industry reached its highest revenue total in four years. "However, we are entering the height of the DRAM boom, and the industry will be heading into a recession during 2005," Norwood said. "While the DRAM vendors are gaining profits, they are increasing their capital expenditures on new production facilities. These will come online in late 2005 and through 2006, triggering an oversupply-driven downturn."
Table 1
Preliminary Worldwide DRAM Vendor Revenue Estimates for 2Q04 (Millions of Dollars)
Company
2Q04 Revenue
2Q04 Market Share (%)
1Q04 Revenue
31Q04 Market Share (%)
1Q04-2Q04 Growth (%)
Samsung Electronics
1,980
29.7
1,585
28.4
24.9
Hynix Semiconductor
1,139
17.1
921
16.5
23.7
Micron Technologies
1,021
15.3
1,002
18.0
1.9
Infineon Technologies
941
14.1
798
14.3
17.9
Elpida Memory
360
5.4
240
4.3
50.0
Others
1,235
18.4
1,026
18.5
20.4
Total
6,676
100.0
5,572
100.0
19.8
Note: Licensing, embedded memory and flash revenue have been excluded from Infineon's revenue. Similar adjustments have been made for other vendors. Source: Gartner Dataquest (July 2004)
As vendors prepare for a more difficult marketplace in 2005, Gartner analysts said there will be a real battle to be a top-tier vendor behind Samsung. "All of the DRAM vendors will need a survival strategy to remain competitive," Norwood said.
Gartner analysts will provide additional analysis on the future of the DRAM market, as well as the overall semiconductor industry, during the Gartner Dataquest Semiconductor Industry Summit, which will be held at the Fairmont in San Francisco on September 13-14. Executives from companies such as Hynix Semiconductor, Micron Technology and Nanya Technology will explain how they plan to compete in the marketplace in 2005 and 2006.
Gartner analysts will examine the long-term trends that will shape the semiconductor and semiconductor equipment industries. Additional information on this Summit is available on Gartner's Web site at http://www.gartner.com/us/semicon.
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