After persevering through a devastating earthquake and two major revenue declines in 2011, Toshiba in the first quarter of 2012 made a noteworthy comeback in the NAND flash memory business achieving double-digit growth that defied an industry-wide contraction in revenues, according to IHS iSuppli.

Toshiba posted NAND sales of US$1.71 billion in the first quarter, up 19% from US$1.43 billion in the fourth quarter of 2011. That growth performance - the best among all suppliers - gave the company a 34% share of the worldwide market, up from 28% in the fourth quarter, IHS said.

In contrast, the overall NAND flash market suffered a 1% sequential decline in revenues, and all the other suppliers experienced sales decreases, most by double-digit percentages, IHS indicated.

"Toshiba's improved performance in the first quarter came after a troubling 2011," said Dee Nguyen, memory analyst at IHS. "Last year the company's NAND market share saw two major declines. The first drop came during the second quarter because of disrupted production stemming from the Japan earthquake-tsunami disaster in March. The second decline arrived during the fourth quarter when uncertain market conditions necessitated a carryover of inventory into the first quarter this year. Toshiba's strong results show that the company has regained its footing and has put a tumultuous year behind it."

The inventory carryover from the fourth quarter of 2011 allowed Toshiba to outship its competitors in first-quarter 2012, IHS noted. With its strong performance, Toshiba was able to hold on to the NAND market's No. 2 rank, second to Samsung Electronics.

The market for NAND flash in the first quarter of 2012 was dragged down by weak pricing, which reflected the mismatch between an industry-wide growth in supply and a seasonally slow quarter for consumer demand, IHS observed. But with the exception of Toshiba, NAND suppliers experienced revenue declines that ranged from a soft landing for Samsung to a steep drop-off for Powerchip Technology, IHS said.

Samsung maintained its lead with a 37% share despite lower revenues in the first quarter of US$1.86 billion, down sequentially from US$1.94 billion, according to IHS. Micron Technology, SK Hynix and Powerchip rounded out the rest of the tightly held NAND market. Overall first-quarter NAND flash sales amounted to US$4.99 billion, down 1% from US$5.05 billion in the fourth quarter last year, said IHS.

For Samsung, the electronics giant posted the highest total revenue among the decimated group, even though its quarterly share of the market inched down by a percentage point. Samsung's quarterly revenue decline was just 4%, compared to double-digit drops ranging from 14% in Micron's case to a sharp 35% tumble for Powerchip, with Hynix somewhere in the middle with its 17% contraction, IHS said.

Samsung's decline was due to a 10% fall in its product ASP, as well as because of the company throttling production in one of its fabs while preparing to transition to the firm's System LSI division that makes processors and chipsets. The company is optimistic, however, about a better environment in the second quarter, as handset and PC manufacturers launch new products for the upcoming high-demand seasons, IHS pointed out.

Micron maintained its place at No. 3 with revenues of US$846 million, equivalent to a 17% market share, IHS said. Micron reported a 23% retreat in its NAND ASP during the period. However, the Idaho-based maker should be able to grow market share in the coming quarter after purchasing the remainder of a joint-venture stake it holds with Intel in managing fabs in Virginia and Singapore, IHS believes.

At No. 4 was Hynix with revenues of US$556 million for an 11% share of market, IHS said. The company recorded tepid shipment growth of 2%, amid an ASP decline in of 16% in light of weak seasonal demand. Hynix also has maintained a cautious outlook for the second quarter, guiding ASP declines in the midteens out of concern for possible oversupply as a result of industry capacity growth, IHS added.

The fifth-ranked player, Powerchip, had NAND revenues of US$17 million for approximately 0.3% market share, according to IHS.

Overall, Toshiba continues to narrow the gap with NAND market leader Samsung, with the race for No. 1 expected to further heat up during 2012, IHS said. The battle for third place will also continue between Micron, currently comfortable in its lead, against Hynix, which now appears willing to spend its way to the top and tackle competitors head on to remain a viable player in the space.