South Korean media: Yangtze Memory Technologies' NAND flash memory global market share has exceeded 10% for the first time!
On December 19, South Korean media Etoday published an article stating that Chinese semiconductor companies are continuously expanding their global market share by virtue of their technical strength and price competitiveness. Although Samsung Electronics and SK Hynix still dominate the memory semiconductor market, the rapid development of Chinese companies has made them unable to be complacent.
Data from market research company Counterpoint shows that China's storage semiconductor company Yangtze Memory has exceeded 10% in the global market share of NAND flash memory for the first time.
According to Counterpoint's report, Yangtze Memory's market share of NAND flash memory shipments reached 10% for the first time in the first quarter of this year, and increased by four percentage points compared to the same period last year in the third quarter, reaching 13%. This is close to the market share of Micron Technology, the fourth largest NAND flash memory company globally. With the increasing application of NAND flash in domestically produced laptops and smartphones in China, it is expected to achieve a 10% market share annually. Counterpoint predicts in its report: "In terms of sales, Yangtze Memory currently holds about 8% of the global NAND flash memory market, but it will exceed 10% by the end of next year."
Yangtze Memory started mass production of a new type of memory in February, which has approximately 270 layers, close to Samsung Electronics' 286 layers. According to reports, the company also ensures price competitiveness through low-cost manufacturing processes.
Yangtze Memory is heavily investing in building a factory near Wuhan, Hubei Province, with the goal of increasing its global shipment share to at least 15% by the end of next year. If the investment is completed as planned, Yangtze Memory will be able to account for about 20% of the global supply of memory semiconductors. This scale would enable it to surpass Japan's Kioxia and pose a threat to SK Hynix, the second-ranked company.
The market share of Chinese companies in the DRAM field is also expanding. In the third quarter, the global DRAM market share of Longsys Memory reached 8%, an increase of 2 percentage points compared to the same period last year, ranking fourth globally. Just within the domestic Chinese market, its market share is as high as about 40%.
Last year, China's smartphone shipments were approximately 286 million units, an increase of 6% compared to the previous year, accounting for 23% of global shipments. Some people predict that if China adopts domestic semiconductors, companies from South Korea, the United States, and Japan will inevitably face a decline in market share and deteriorating profitability.
However, the circulation of Chinese semiconductor products overseas remains limited. In 2022, the U.S. government added Yangtze Memory to the export control list, prohibiting U.S. companies from providing technology to Yangtze Memory without authorization. At that time, Apple considered using Yangtze Memory's products in iPhones, but ultimately failed to reach an agreement.
Nevertheless, just as China rapidly captured the global market share in the solar panel, battery, and electric vehicle industries through price competitiveness in the past, a similar trend may emerge in the storage semiconductor industry. Data from market research company TechInsight shows that Chinese NAND products are 10% to 20% cheaper than those from other countries. The Semiconductor Equipment and Materials International (SEMI) stated: "Despite the impact of U.S. sanctions, Chinese companies face difficulties in purchasing production equipment, but they are still working to improve yield rates. If the current price gap continues, the penetration rate of Chinese memory in overseas markets will gradually increase."
Original: toutiao.com/article/1851940323621895/
Statement: This article represents the views of the author alone.