In January this year, UMC announced that it had infringement doubts in the Fuzhou Intermediate People's Court. In addition to claiming compensation of RMB 270 million, it also prohibited the manufacture, processing, import and sale of Micron products in China. The first-instance judgment was released and the company won the case. Micron faces the ban on the sale of some products in the Chinese market, and the Chinese manufacturers will officially join the market next year, which will trigger the reshuffle of the global sales landscape.
Micron's products include Micron brand, Crucial (including memory module and SSD), and it is facing the ban on standard memory (PC DRAM) and some flash memory products (SSD) in China. Micron still has The right to appeal, the subsequent impact of the case is bound to become the focus of the global memory industry.
From the market perspective, China, as the world's second largest economy, will absorb 20% of global DRAM capacity this year. In terms of revenue from the three major OEMs, Micron ranked third in the world in terms of revenue in the first quarter of this year. Its revenue share was about 23%, which was lower than Samsung's 45% and SK hynix. 28%, and about 26% of Micron's total DRAM capacity is digested by the Chinese domestic market. In the face of the ban on the sale of some products in the Chinese market, Micron is bound to impact its revenue performance, and will make Samsung and SK Hynix, as well as Hefei Changxin and Jinhua, which are expected to formally join the market next year, become the direct beneficiaries of the Chinese market. .
From the perspective of NAND Flash, according to the data, the Chinese domestic market is digesting about 25% of the global NAND Flash capacity this year. In the first quarter of this year, Micron ranked fourth in the world in terms of revenue, with a revenue share of 12%, which is lower than Samsung's 37%, Toshiba's 19% and WDC's 15%. China's domestic demand market digests about 20% of its production capacity. Similarly, Micron faces Samsung, SK Hynix, WDC, Intel, Toshiba as competitors, and Yangtze River Storage (YMTC), which may officially join the market next year, directly benefiting from the ban on certain products in China.
In addition, according to the judgment released on July 3, in addition to some of Micron and Crucial's ban in China, Xi'an Optical Semiconductor Sales (Shanghai), which also includes Micron, will stop the testing and testing of Micron products. US Ltd. will stop selling. Therefore, in addition to Micron and the sales of Intel's in China will be affected, its downstream third parties are also likely to be affected to a considerable extent.