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China Consumes US$10.2 Billion Worth of DRAM in 2014

Published: Nov 17,2014

According to DRAMeXchange, the business potential of China's massive consumer market grew as PC, smartphone, and tablet manufacturers began setting their sights on the country. As of this year, nearly 4.789 billion DRAM chips and 3.518 billion NAND Flash chips from the 2Gb category have been consumed in the China market, accounting for a respective 19.2% and 20.6% of the world's total DRAM and NAND Flash outpu.

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China's PC DRAM consumption is currently at approximately 15%. Benefiting from domestic demand, Lenovo has managed to raise the scale of its business operations over the years, and is currently acquiring other companies as a means to boost its presence among first tier manufacturers. While the company is still competing fiercely with HP for top position in the PC market, its overall PC shipments are already ahead of all of its other competitors'.

For 2015, DRAMeXchange predicts that Lenovo's market share will arrive at approximately 17%. As has been the case with the other markets, Mobile DRAM is expected to gradually replace PC DRAM as the mainstream in China given the country's growing smartphone and tablet sales. Aside from ZTE and Huawei, which are doing relatively well overseas, most China-based smartphone brands are expected to place their focus on the domestic market.

Based on TrendForce's 2014 market statistics, China alone already accounts for 28% of Mobile DRAM's overall bit demand. The importance of China's economic development to the entire DRAM industry is expected to become more apparent next year as that proportion rises to over 40%.

As the NAND Flash manufacturing processes are currently advancing to under 1ynm, many NAND Flash applications including smartphone and tablet-based eMMCs and Notebook-based SSDs are showing improved growth in the market. Competition among global OEM manufacturers, meanwhile, is starting to become more intense, with brands other than Apple and Samsung starting to make their way into the country's lucrative market.

The level of China's NAND Flash consumption has managed to grow considerably over recent years due to Lenovo's rise to prominence, the above-average growth shown by China's emerging brands, and the improving standards of China's hardware designs. By the end of 2014, DRAMeXchange projects that the NAND Flash market's total value in China will reach up to US$ 6.3 billion. The proportion of China's overall NAND Flash usage relative to the world's NAND Flash output, on the other hand, is expected to hit 20.6% in 2014, and 30% or more in 2015.

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