Hynix overtakes Micron as No. 2 DRAM maker

Hynix Semiconductor Inc. of Korea overtook Micron Technology Inc. of the United States as the world’s second-largest dynamic random access memory chipmaker during the second quarter of this year, according to Isuppli Corp., a U.S. market researcher. Hynix recorded $939 million in sales of DRAM chips in the second quarter, making up 16.4 percent of the market, while Micron made $840 million in sales with a 14.7 percent market share. Hynix and Micron have competed over the second largest position for the last one and a half years, changing ranks six times. Samsung Electronics, the world’s largest DRAM chipmaker, posted $1.7 billion in the second quarter, remaining at the top position. Hynix nosed down Micron in profitability as well. Even though the average DRAM chip prices dropped 20 percent during the second quarter, the ratio of operating income to sales in Hynix was 21, while that in Micron was negative 12, meaning Micron did not make a profit by selling DRAM chips. A Hynix official said that Hynix has improved its technology to lower the production cost by about 40 percent, resulting in better earnings in the second quarter. Industry experts expected that Hynix would continue growing at least until the end of this year. The demand for DRAM chips usually increases in the second half and many of its rival companies are expected to change DRAM production lines to make flash memory chips, dropping the supply. Its increasing sales of NAND flash memory chips, which are more profitable, also makes Hynix’s future bright. by Kim Chang-woo, Park Sung-ha