Samsung, SK hynix see DRAM revenue grow in Q2

[THE INVESTOR] Leading global DRAM makers Samsung Electronics and SK hynix saw their DRAM sales increase in the April-June period despite prolonging downward pressure on prices, according to market research firm DRAMeXchange.

Samsung’s DRAM business earned $4.32 billion in the second quarter this year, up 8.7 percent from a year earlier.

SK hynix earned $2.41 billion in the same period, up 4 percent compared to last year while Micron of the US saw its DRAM revenue jump 8.8 percent to $1.73 billion.

Samsung Electronics’ 10-nanometer class DRAM. Samsung Electronics

Although the global average price of DRAM for all applications fell by more than 5 percent in the second quarter, the overall revenue in the sector increased 6.3 percent thanks to the expansion of bit supply.

Micron and SK hynix drove the bit supply growth by ramping up production of their 21-nanometer and 20-nanometer chips, respectively, according to the research firm.

The increased supply, however, brought down the operating profit margin of Samsung and SK hynix.

Samsung saw the operating margin drop from 40 percent in the first quarter to 36 percent in the second quarter while that of SK hynix decreased from 24 percent to 18 percent.

Samsung, SK hynix and Micron, the top three DRAM makers, took up 92.9 percent of market share in the second quarter -- 47.4 percent, 26.5 percent and 19 percent, respectively.

DRAMeXchange anticipated the three companies will try to improve their profit margin by reducing costs in the months to come.

By Kim Young-won (wone0102@heraldcorp.com)