Monday, November 18, 2019
Big 3 Memory Makers Suffer a 30 Percent Plunge in Sales
Global Memory Market in the Doldrums
Big 3 Memory Makers Suffer a 30 Percent Plunge in Sales
  • By Michael Herh
  • August 22, 2019, 14:36
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The world’s top three memory makers -- Samsung Electronics, SK Hynix, and Micron -- suffered a sales drop of more than 30 percent in the first half of this year.

Sales of the world’s top three memory makers -- Samsung Electronics, SK Hynix, and Micron -- plunged by more than 30 percent in the first half of this year due to the slumping global semiconductor market.

The world’s top 15 semiconductor makers' sales totaled US$148.72 billion in the first half, an 18 percent drop from US$180.96 billion in the same period of last year, said IC Insights, a global market researcher, on Aug. 21. In particular, the top three memory semiconductor makers’ sales plunged. Second-placed Samsung Electronics’ sales fell 33 percent while those of SK Hynix (4th) and U.S. Micron (5th) dropped 35 percent and 34 percent, respectively.

Intel of the United States recorded a drop of only 2 percent, beating Samsung Electronics to rank first. Sales of Taiwan's TSMC, the world's largest foundry company, also shrank by 9 percent, but surpassed those of SK Hynix to take third place. Among the 15 semiconductor companies, Sony of Japan was the only company that recorded sales growth (13 percent) in the first half.

However, in the second quarter alone, sales of these 15 companies totaled US$75,027 million, a slight increase from US$73,691 million in the previous quarter. This led some experts to predict that their sales would recover in the second half.

“In the first half of this year, global semiconductor sales fell by 14 percent compared to a year ago, while the top 15 companies’ sales shrank by 18 percent due to slumps of the three largest memory makers,” IC Insights said. “Major chipmakers are offering third-quarter revenue forecasts, which range from a 21 percent increase to a 2 percent decrease from the previous quarter.”