[Digital Times, by Park Seul Gee ] Samsung Electronics has kept its No. 1 place in the NAND flash memory market last year with the biggest revenue gap in the history against Toshiba, No. 2 player in the market. This year, Samsung Electronics, which has become the "First Mover" in this market, is expected to further strengthen its position as NAND flash market conditions are good, and Toshiba, on the other hand, is shaken by the issue of disposal.

According to market researcher DRAMeXchange, Samsung Electronics Co., Ltd. which recorded revenue of USD 14.151 billion (about KRW 16.343 trillion) in NAND flash business last year, recorded revenue of USD 788.9 million which is USD 53 million or more ahead of the market. This is the first time NAND flash market has topped USD 6 billion in sales difference. Compared with the previous year, Samsung Electronics`` NAND flash revenue has grown 34%, while Toshiba increased 18.4%.

Samsung Electronics has been able to expand its sales gap in the market because it secured high value 3D NAND flash mass-production technology early on and quickly increased sales portion.

The semiconductor industry is predicting that the current system will continue for the time being as Samsung Electronics, which succeeded in mass production of 3D NAND for the first time in the world in 2013, has started to mass-produce 4th-generation (64-stage) 3D NAND from December last year. An expert of semiconductor industry said, ‘I believe that Samsung Electronics has begun supplying 4G NAND to its customers. Even though the company currently cannot meet the high supply demand, it will increase its manufacturing capacity in the future.’

Toshiba, which has been suffering from a management crisis, unlike Samsung Electronics`` speeding up 3D NAND business, is sluggish. Although it seems that Toshiba is expanding the investment of 3D NAND, it is known that development is slow and it is difficult for mass production. Although Toshiba is planning to invest JPY 800 billion (about KRW 8 trillion) in Yokaichi, Shiga Prefecture, Japan, to expand 3D NAND equipment, it is unknown whether it will be able to implement this investment plan properly.

Moreover, Toshiba is trying to sell off its stake in the semiconductor business to cover losses of JPY 700 billion (about KRW 7 trillion) from the US nuclear power plant business. Therefore it is difficult for Toshiba to catch up Samsung in the market. Toshiba will receive a proposal for the disposal of its stake in Toshiba Memory on April 1 of this year. It is expected that the disposal will be completed at the end of March next year after the candidates for the preferential negotiations are selected in June of this year and the antitrust laws of each country are examined.

An expert of semiconductor industry analyzed, ‘Toshiba is currently unable to invest in the NAND business and is planning to sell its stake in the company. Which means Samsung will solidify its market leadership’.

By Park Seol Gee seul@
By seul@


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