Competitors' production cuts in NAND flash will increase Samsung’s market share
production capacity, will take the opportunity to increase market share as competitors reduce their production of memory chips.
On July 31, DRAMExchange announced the price of memory transactions at the end of July. The average price of NAND flash 128Gb 16Gx8 MLC is $4.01. In fact, NAND flash memory has been falling since it reached the highest record of 5.78 US dollars at the end of August 2017, and it began to pick up due to various factors recently.
According to IHS Markit statistics, in the global NAND flash memory market, there are six major companies occupying almost all market share. In the first quarter of this year, Samsung Electronics has a market share of 34.1%, Toshiba accounted for 18.1%, Western Digital 15.4 %, Micron 12.9%, SK Hynix 9.6%, and Intel accounted for 8.8%.
It is worth noting that in addition to Samsung Electronics and Intel, four other companies are cutting production. In addition, Intel's main product is not memory, but CPU, so in fact, only Samsung Electronics maintains capacity among these NAND flash manufacturers.
As these producers reduce production, inventory will also decrease. Under such circumstances, the price of NAND flash memory has rebounded recently. A semiconductor industry insider said that Samsung Electronics has the opportunity to expand its market share because it has no production cuts.