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It looks like the US storage manufacturer Micron is challenging Samsung’s position in the semiconductor storage industry. The latest quarterly financial reports of both companies show that Samsung’s semiconductor business operating profit margin was 18%, while Micron’s reached 20% in the first quarter of 2021, reports Nikkei Asia.

The report further reveals that Samsung Electronics’ market share in DRAM and NAND flash memory products has declined in the past five years, while Micron has increased by 3% and 1% in DRAM and NAND flash memory respectively.

According to the report, the reason why Samsung Electronics’ semiconductor business profit margin has declined is weather such as snowstorms in Texas. In addition, it is also possible that Micron’s rapid progress in the memory chip manufacturing process has made Samsung Electronics’ semiconductor storage division more competitive.

However, the memory chip business is the main source of profit for Samsung Electronics and an important income component of the semiconductor business, the decline in the company’s profitability in this area may also affect its other businesses such as foundry, display devices, and smartphones.

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James is the lead content creator on Sammy Fans and mostly works on Samsung's firmware section. His first phone was the Galaxy S4 and continues to get new S series devices. Most of the time, James tries to learn about new technologies and gadgets but he also sneaks a bit of free time to nearby rivers and nature.

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