Samsung Electronic DRAM Industry Competitor Analysis

Case Study

Eun Chong

Semiconductor manufacturers selling their memory chips to OEM PC producers (B2B) worldwide

Competitor Analysis

The Major Competitors

Brief about Competitors

HYNIX• Cost advantage of Korea• Over-investment ▶ Fail• Recently JV with Chinese producer

Infineon• German, long history• SA to reduce investment risk• Taiwan-based DRAM manufacturer• JV with Nanya• Heavy investment planned in Asia

MICRON• US• Acquisition of Texas instrument• 26years, financial distress• Focus on DRAM• Get invested from Intel

SMIC Estabilished in 2000 and HQ in Shanghai Get licensed from others (Infineon) Purchase of production facility 1 b High revenue growth (revenue & stock exchange) Produce older generation (outdated tech) Grow market share at expense of profitability By Son of former Chinese leader Jiang Zemin 4% to 7% world market share increase predicted Fast increase

Brief about Competitors

Size comparison by Asset

Product Volume

BENCHMARK

&

Cost Structure

Selling Price

Operating Margin (%)

Threats of CHINA

Dangerous Competitors Ranking

What is learned?Currently, the competitors of Samsung are far behind Samsung.However, there is a potentially huge threat from China

Strength – Resource and Low production cost

Weakness – Outdated technology, lack of ability to design memory chips

Current strategy – Aggressive pricing

Likely strategic move – purchase technology license or Strategic Alliance with competi-tors

More about SMIC