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Follow UsTAIPEI, TAIWAN: The NAND Flash shortage in 3Q07 resulted an over 5 percent QoQ growth in ASP and resulted in the stunning sales record among leading vendors in the quarter. Although chipmakers raised their wafer starts amount and production proportion of MLC parts, the ongoing adjustment for transition to 50nm-class production node constrained the QoQ bit growth to ~30 percent.
As of 3Q07, Samsung again topped the throne as the number-one NAND Flash supplier, followed by Toshiba, Hynix Semiconductor, Micron Technology and Intel, DRAMeXchange detailed. Among all major chipmakers, the later three companies all posted remarkable QoQ sales growth.
NAND Flash maker ranking by revenues, 3Q07(Unit: US$mn)
| Suppliers | 3Q07 revenue | 3Q07 market share | 3Q07 QoQ growth | 2Q07 revenue | 2Q07 market share |
| Samsung | 1,549 | 39.80% | 22.90% | 1,260 | 44.3 |
| Toshiba | 968 | 24.90% | 36.10% | 711 | 25.00% |
| Hynix | 871 | 22.40% | 81.10% | 481 | 16.90% |
| Micron | 238 | 6.10% | 73.70% | 137 | 4.80% |
| Intel | 96 | 2.50% | 77.80% | 54 | 1.90% |
| STMicro | 92 | 2.40% | 12.20% | 82 | 2.90% |
| Renesas/PSC | 80 | 2.10% | -33.90% | 121 | 4.30% |
| Total | 3,894 | 36.80% | 2,846 |
Source: DRAMeXchange,2007/11
Note: Qimonda temporarily suspends its Twin Flash sales in 3Q07
The combined market share of 87.1 percent from the top three NAND Flash vendors in 3Q07, again, highlights the concentrated nature of the business.
Samsung saw its market share slipped by 4.5ppts QoQ to 39.8 percent in 3Q07, but still managed to be the number-one vendor. Output volume reduction that stemmed from the power outage at its NAND Flash plant at Giheung, Korea during early August, as well as the parameters adjustment on 50nm-class production node transition, are the two primarily factors. Samsung saw its QoQ bit growth only reached 3 percent in 3Q07.
However, as prices of both SLC and MLC parts appreciated, the Korean chipmaker saw its sales up 22.9 percent QoQ to US$1.55bn.
Toshiba still holds its second place on a solid market share of 24.9 percent in 3Q07. Toshiba's solid foothold is sustained by the persistent ramp up of NAND Flash wafer starts at the 12-inch Fab 3 and production process node advancement. Output growth rewarded the company with a 36.1 percent QoQ sales growth at US$968mn.
Hynix saw its market share increased by 5.5ppts QoQ to 22.4 percent -- a noticeable achievement as compare with its rivals. Hynix saw its QoQ bit growth recorded at 92 percent, much offsetting the 6 percent QoQ ASP erosion due to its strategic price cut in the quarter. Overall sales from NAND Flash production rocket by 81.1 percent to US$871mn in the quarter.
Strong performance from those relatively new entrants such as Micron and Intel should not be neglected. Thanks to the upward price trend in the quarter, both companies saw their NAND Flash sales soared by 73.7 percent and 77.8 percent QoQ in 3Q07, translating to a respective market share of 6.1 percent and 2.5 percent.
Regarding production status of other players, STMicroelectronics saw growth from its MCP-related business continued expanding in 3Q07, thereby its corresponding NAND Flash sales posted a 12.2 percent QoQ growth and a market share of 2.4 percent in return. The company also updated that it would have the joint venture with Intel (Numonyx) to complete by the end of 2007.
Renesas Technology, on the other hand, starts trimming its in-house AG-AND Flash production proportion from 2007, but instead rely more on its ally, PSC, on Flash production. The Renesas-PSC camp posted a 33.9 percent QoQ sales decline in 3Q07 on a market share of 2.1 percent. PSC updated that it starts producing new SLC and MLC NAND Flash in 4Q07.