Asia Essentials

We expect the DRAM market to grow 28% YoY to US$54bn in 2017 on 18% bitshipment growth and an 8% price rise in US$/GB. In our view, the new industryparadigm has been clearly validated by the fact that DRAM industry revenue inthe past 3 years has hovered over US$40bn, above the US$39bn previous peaklevel in 2010. Applying market share of 45% for Samsung and 25% for Hynix,Samsung’s revenue share is Won28tr (from Won22tr in 2016) and Hynix’s isWon16tr (from Won12tr in 2016). In DRAM, over 60% of incremental salestranslate to profit due to high operating leverage.