Samsung Electronic DRAM Industry Competitor Analysis
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Case Study Eun Chong
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Transcript of 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(Infineon) Purchase of production facility 1 b High revenue growth (revenue & stock exchange) Produce older generation (outdated tech) Grow market share at expense of profitability By Son of former Chinese leader Jiang Zemin 4% to 7% world market share increase predicted Fast increase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Weakness – Outdated technology, lack of ability to design memory chips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
