Global Memory Market Very Likely to See Reshuffle
July 4, 2018 | TrendForceEstimated reading time: 2 minutes
United Microelectronics Corporation (UMC) filed a lawsuit against Micron Technology subsidiaries in China for patent infringements in January 2018, and demanded a compensation of RMB 270 million ($40.7 million). UMC also requested the court to order potential defendants to stop manufacturing, processing, importing, and selling the allegedly infringing products. Yesterday, Fuzhou Intermediate People's Court of China issued a preliminary injunction against Micron, enjoining Micron from selling related items in China. DRAMeXchange, a division of TrendForce, expects that the global memory market may have a reshuffle if the judgment is enforced and other Chinese memory suppliers enter the market next year.
Micron Technology offers Micron-branded products as well as Crucial-branded notebook DRAM modules and SSD. After this lawsuit, some of its PC DRAM and SSD products are facing a ban on sales in China. Micron still has the right to appeal, and the follow-up of this case is bound to become the focus of the global memory industry amid the critical stage for the US-China trade war. In addition, the production will formally begin in China's domestic DRAM industry, adding to the tensions between the two countries.
As a major DRAM supplier, Micron took the third place in the global DRAM revenue ranking for 1Q18 with a market share of 23%, following 45% of Samsung and 28% of SK Hynix, says DRAMeXchange. On the demand front, Chinese domestic market is expected to consume around 26% of the DRAM bit output of Micron, and 20% of global DRAM bit output in 2018 as China remains the world's second-largest economy. If the judgment is enforced in the future, Micron will be prohibited from selling some of its memory products in China. This is bound to influence the company’s revenue performance, which would directly benefit its competitors including Samsung, SK Hynix, as well as Innotron (Hefei Chang Xin) and JHICC who are expected to enter the market formally in 2019.
In terms of NAND Flash, Chinese domestic market is expected to consume 25% of global NAND Flash bit output this year, according to the data of DRAMeXchange. In 1Q18, Micron’s NAND Flash revenue ranked the fourth worldwide with a market share of 12%, following 37% of Samsung, 19% of Toshiba and 15% of WDC. Chinese domestic market is expected to consume around 20% of the NAND Flash bit output of Micron in 2018. If the ban is enacted, Micron’s competitors, including Samsung, SK Hynix, WDC, Intel, Toshiba and the new entrant YMTC would be benefited.
The judgment issued on July 3rd not only banned the sales of some Micron-branded and Crucial-branded products in China, but also ordered Micron’s IC assembly/testing plant in Xi’an to halt operation; Micron Technology (Shanghai) Co., Ltd. has also been ordered to cease sales. The judgment will have significant impacts on the sales of products under Micron's own brand or the Crucial brand in China. Moreover, the businesses of Micron's downstream partners would also be affected.
About TrendForce
TrendForce is a global provider of the latest development, insight, and analysis of the technology industry. Having served businesses for over a decade, the company has built up a strong membership base of 435,000 subscribers. TrendForce has established a reputation as an organization that offers insightful and accurate analysis of the technology industry through five major research divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend and Topology. Founded in Taipei, Taiwan in 2000, TrendForce has extended its presence in China since 2004 with offices in Shenzhen and Beijing. For more information, click here.
Suggested Items
Keynote Preview: Reshaping our Engagement With the World
03/28/2024 | Shawn DuBravac, IPCThe widespread integration of AI across various sectors is broadening its impact, from revolutionizing healthcare with Smart solutions to transforming homes into intuitive spaces, highlighting its crucial role in boosting efficiency and addressing complex challenges. In healthcare, we're witnessing a trend toward personalized care with AI-driven devices like intelligent pillows to mitigate snoring, sophisticated sleep monitors, and innovative patient monitoring systems.
Indium Corporation to Present, Exhibit at EPP InnovationsFORUM
03/28/2024 | Indium CorporationIndium Corporation is set to present and exhibit at EPP InnovationsFORUM, one of Europe’s premier single-day electronics manufacturing forums, on April 17 in Leinfelden-Echterdingen, Germany. Topic areas for 2024 will include AI, automation, sustainability, and quality.
Accenture Invests in Sanctuary AI to Bring AI-Powered, Humanoid Robotics to Work Alongside Humans
03/27/2024 | BUSINESS WIREAccenture has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI and can perform a wide variety of work tasks quickly, safely and effectively.
AT&S Well Prepared to Benefit from AI Boom
03/26/2024 | AT&SThe rapid progress in the development of artificial intelligence promises to revolutionize all areas of daily life in the coming years. In order to operate such AI systems, an enormous amount of computing power is required, which is provided by a vast network of data centres.
The IMAPS Show: A Conversation with John Andresakis
03/26/2024 | Marcy LaRont, PCB007 MagazineOn the last day of the IMAPS Device Packaging Conference, Marcy LaRont sat down with industry veteran John Andresakis of Quantic Ohmega, who attended the conference this week. Not his first time at this event, he talked about the conference, advanced technology, and trying to get the word out about the advanced packaging substrates solution Quantic is offering.