Worldwide dynamic random-access memory (DRAM) revenue reached US$6.7 billion in the second quarter of 2004, a 19.8 percent increase from the first quarter of this year, according to preliminary results by Gartner.
Hynix Semiconductor moved into the number two position in the second quarter of 2004 with revenue totaling $1.1 billion. The last time Hynix held the number two position was in 1999, the year Hyundai Electronics and LG Semicon merged to form Hynix Semiconductor.
“Hynix Semiconductor was one of the top performers in the second quarter,” said Andrew Norwood, principal analyst for Gartner’s semiconductor research group. “Hynix’s strong presence in the legacy and graphics DRAM segments, which had strong pricing, enabled it to outgrow its rivals, Micron and Infineon.”
In the second quarter of 2004, the DRAM industry reached its highest revenue total in four years.
“However, we are entering the height of the DRAM boom, and the industry will be heading into a recession during 2005,” Norwood said.
“While the DRAM vendors are gaining profits, they are increasing their capital expenditures on new production facilities. These will come online in late 2005 and through 2006, triggering an oversupply-driven downturn.”
As vendors prepare for a more difficult marketplace in 2005, Gartner analysts said there will be a real battle to be a top-tier vendor behind Samsung. “All of the DRAM vendors will need a survival strategy to remain competitive,” Norwood said.