Taipei, Nov. 8, 2010 (CENS)--Due chiefly to smooth deployment of 40-nanometer process technology, Samsung Semiconductor saw its share of the global DRAM (dynamic random access memory) market surge 6.1 percentage points from the second quarter this year, to 40.4% in the third quarter, according to a survey recently released by market research firm DRAMeXchange.

The advanced process technology helped boost Samsung's sales by a staggering 43% in the third quarter, to 10.66 trillion won (US$9.6 billion at US$1:1108 won). In the meantime, the South Korean firm's operating margin stood at 32.1%, and its consolidated earnings rose 17.5%, to 3.42 trillion won (US$3.08 billion).

Samsung was the only first-tier DRAM chipmaker to enjoy a gain in market share in the third quarter, retaining No.1 title in the market, according to DRAMeXchange. However, Samsung projected DRAM oversupply to last into the fourth quarter as a result of weak demands for PCs. Market slump will inspire Samsung to increase production on 35nm process, which is estimated to bring its costs further down.

Elpida Memory, Hynix Semiconductor and Micron Technology, on the contrary, lost market shares to Samsung as a result of uneven migration to advanced process technologies.

Hynix's market share slipped from 21.6% to 19.8%, given its marginal 2% increase in defect-free production on 46nm process and a 9% decline in average DRAM price. Elpida's market share declined to 16.1% from 18.4%, due partly to low sales contribution from its 45nm process technology, which remained in an infant stage at the company. Micron's market share sank to 12% from 13.8% because of an output hamstrung by strategic partner Inotera Memory's ongoing technology migration. Micron's DRAM output plunged 12% last quarter while its average selling price slightly slipped.

In the third quarter, many Taiwanese DRAM chipmakers also lost market shares. Nanya Technology Corp. saw its market share dip to 4.2% from 4.5% while its sales declined 5.2%. PowerChip Semiconductor Corp. (PSC) outperformed its industrial peers in Taiwan, with revenue surging 12.9% from the second quarter this year to US$275 million in the third quarter.

(by Ken Liu)