EL SEGUNDO, Calif. -- Micron Technology Inc. in the second quarter narrowed its NAND flash memory market-share gap with Hynix Semiconductor Inc., setting the stage for a battle for the industry's third rank this year, according to iSuppli Corp.

U.S-based Micron in the second quarter sold $300 million worth of NAND flash memory, up 11.9 percent from $268 million in the first quarter, the largest percentage and revenue growth of the Top-7 suppliers ranked by iSuppli.

Micron's industry-leading performance was all the more remarkable given the generally weak conditions in the NAND flash market in the second quarter. Global NAND flash memory revenue declined to $3.36 billion in the second quarter, down 2.5 percent from $3.45 billion in the first quarter. Five of the Top-7 NAND suppliers posted either declines or zero growth in revenue compared to the first quarter.

No.-4 ranked Micron's share of global NAND revenue market increased to 8.9 percent in the second quarter, up from 7.8 percent in the first. Micron in the second quarter trailed No.-3 ranked Hynix of South Korea by only 4.5 percentage points, down from 7.2 percentage points in the first quarter.

The attached figure presents iSuppli's worldwide ranking of NAND flash suppliers in the second quarter.

Micron's market-share advance reflects its aggressive production ramp of 300 millimeter (mm) wafers and its plan to migrate nearly half of its NAND flash manufacturing to the 34 nanometer (nm) process geometry by the end of 2008, iSuppli believes.

"In the memory world, process migrations and wafer scale are two crucial factors in driving down costs," observed Nam Hyung Kim, chief analyst and director at iSuppli. "Micron has rapidly increased its 300mm wafer capacity and the 32nm geometry will boost its profitability in the near future, as well as its productivity.

Because of its aggressive production ramp, Micron now is challenging Hynix for the market's No.-3 spotnd by the first half of 2009 likely will be in a position to vie with industry leaders Samsung Electronics Co. Ltd. and Toshiba Corp in terms of profitability."

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