Taiwan-based DRAM makers believe that Samsung Electronics is more ambitious in widening the gap with its nearest competitor in the NAND flash market, instead of further strengthening its already-dominant position in the DRAM segment. The impact of Samsung's capacity ramp for DRAM chips on competitors should be limited.
Samsung's share of the global NAND flash market once reached as high as 50%, the makers said. However, the share has slid to less than 40%, while Toshiba is edging closer to the market leader, the makers indicated. In order to widen its lead over Toshiba, Samsung may allocate most of the capacity at its new production line - Line-16 - to produce NAND flash chips, the makers said.
The makers also pointed out that Samsung is probably aware of antitrust issues, and therefore is unlikely to grow further its share of the DRAM market.
According to Samsung's capacity expansion plans for its memory-chip business, Line-16 for DRAM, NAND and next-generation memory products is expected to come online in 2010 with a monthly capacity of 200,000 12-inch wafers. The vendor will also expand its existing Line-15 for the production of 30nm DDR3 memory.
A analyst commented that Samsung's new capacity will affect the DRAM market and prices. In addition to capacity expansion, Samsung is also transitioning to a 30nm-class process ahead of its peers, and is expected to see the node account for 10% of its total DRAM output by the end of 2010.
He also predicts that in 2011-12, the PC DRAM market may be dogged by oversupply that will trigger another full-scale price correction, with less-competitive players to be forced to leave the market.