Micron Technology surged 130 percent in revenue during the third quarter as it finally closed its acquisition of bankrupt Elpida Memory of Japan, a vigorous ascent that also propelled the total market for dynamic random access memory (DRAM) to its best performance yet in 11 quarters, according to a new DRAM Dynamics brief from IHS Inc.
Micron ended the third quarter with sales of $2.63 billion, up a sizzling 131.3 percent from $1.14 billion in the earlier quarter, to give the Idaho-based maker 27.4 percent market share. Micron remains at No. 3 overall behind top-ranked Samsung, but Micron is now within striking distance of second-ranked SK Hynix.
Samsung still has a commanding lead with 36.8 percent market share of DRAM, but SK Hynix, with 27.8 percent share, is now just four-tenths of a percentage point ahead of Micron.
Micron’s market share had been hovering in the 10 to 15 percent range for the last several years, but the addition of Elpida’s revenue to its column has made a significant difference. The closing of the Elpida acquisition, more than a year in the making and a formidable rival of Micron in the past, will now more than double Micron’s DRAM manufacturing capability. This means Micron will now claim 25 to 30 percent market share from this point forward.
Micron’s market share in the third quarter received an additional bump because of the company’s high exposure to the PC DRAM space, which has seen prices appreciate considerably since November 2012. Nearly 35 percent of Micron’s revenue came from sales of PC DRAM, IHS estimates.