Samsung Electronics and SK Hynix together accounted for less than 50 percent of the global NAND flash memory market in the first quarter of this year. This is attributable to the fact that competition between the two Korean chipmakers and their rival companies like Toshiba and Micron Technology has become more intense in the rapidly-growing NAND flash market, fueled by an increased demand for mobile devices.
According to market research firm IHS iSuppli on July 1, Samsung Electronics turned over US$2.84 billion in Q1 2014, and thus maintained its position as the top-ranked NAND flash memory chipmaker in the world with a 37.4 percent share.
Toshiba occupied the runner-up position with a 31.9 percent share and US$1.778 billion in sales. It narrowed the gap with Samsung in the market to 5.5 percent. In Q4 2013, it was 7.2 percent.
Micron Technology was in third place with a 20.1 percent share and US$1.121 billion in sales, followed by SK Hynix with a 10.6 percent market share and US$592 million in sales.
The two Korean chipmakers' share of the NAND flash market amounted to only 48.0 percent. It is the first time for their combined market share to equal less than 50 percent after the first quarter of 2012, when their share totaled merely 48.5 percent. In Q2 2012, the number increased to 54.3 percent.
This phenomenon is due to the fact that the gap between Samsung and Toshiba narrowed. The increased share of Micron Technology is another factor.
Meanwhile, the two Korean firms comprised 65.0 percent of the DRAM market in Q1. Samsung, SK Hynix, and Micron Technology dominate the DRAM market, while the NAND flash market is dominated by the three companies plus Toshiba.
The NAND flash market is growing more rapidly than the DRAM market with a 24.2 percent year-on-year gain in total sales in 2013.
The semiconductor industry thinks that Samsung will be able to widen the gap with Toshiba after Q2, once manufacturing output in its 3D V-NAND production facility in Xi'an, China is reflected in data. The Xi'an plant commenced full operations in May.
Toshiba, which developed the world's first NAND flash memory chips in 1987, made an investment of 7 trillion won (US$6.9 billion) in its facility to mass-produce 3D V-NAND flash memory chips.
The gap between Samsung and Toshiba widened to 17.8 percent in Q2 2012, but narrowed to single digits. In Q3 2013, SK Hynix narrowed the gap with Micron Technology to 1 percent, but the Korean chipmaker has been recording a weaker performance since then.