By Kim Yoo-chul
Staff Reporter

Samsung Electronics, the world's biggest memory chipmaker, aims to increase its global market share of dynamic random access memory (DRAM) chips to 45 percent by 2010.

This represents an increase of 9 percentage points from this year's projection of 36 percent, according to Samsung executives and industry watchers.

"Samsung is aiming to raise its global DRAM share to 45 percent in 2010 inspired by the bullish outlook in the memory chip sector," a Samsung executive told The Korea Times, Wednesday, asking not to be identified.

A Samsung spokesman Kim Choon-gon declined to confirm, citing the sensitivity of the issue. But Kim said Samsung is forecast to add "a few percentage points" in its global DRAM share next year.

DRAM chips are widely used in traditional PCs. The industry leader Samsung supplies the components to major PC makers Dell and Hewlett-Packard of the United States and leading Taiwanese PC companies.

"For NAND flash memory chips, Samsung is also planning to raise its global market share to 45 percent in 2010 from this year's estimated 40 percent, mainly propelled by the growing popularity of smartphones," the Samsung executive said.

The Suwon, Gyeonggi Province-based technology powerhouse is also the leader in the global NAND flash memory chip market.

Flash memories are used in high-end digital devices such as smartphones, car navigations systems, cameras and MP3 players.

As of the end of the third quarter, Samsung's market share in DRAM chips was 31.1 percent, while its NAND share was 38.5 percent, according to data from DRAMeXchange, a market research firm.

The 2010 goal reflects Samsung's positive stance toward the memory chip industry, Samsung representatives said.

Robert Yi, chief of Samsung's investor relations team, said it will invest at least 5.5 trillion won in memory chips in 2010, up from 4 trillion won this year amid rising demand.

Meanwhile, Kwon Oh-hyun, president of Samsung's chip division, said the global memory sector alone will grow 16 percent next year with the recent price rally continuing as the market is expected to see a supply shortage.

"The raised target seems to be achievable. Samsung's chip division will be the key driver to lift the profits of Samsung Electronics," Park Young-joo, an analyst at Woori Investment, said, adding technology advancements and edges in cost-cuts will help the company expand its share.

Samsung aims to increase its semiconductor revenue to $25.5 billion in 2012, up more than 50 percent from $16.6 billion targeted for this year.

After a two-year protracted slump, the global memory chip market has been on a speedy recovery track amid eased worries over the global economy and increased corporate spending on PCs.

U.S. semiconductor giant Intel has fueled further optimism by saying that it is on track to meet its fourth quarter outlook and that a recovery in corporate PC spending could happen during the next 18 months.

Memory chips are regarded as commodities with high volatility. Inspired by such brighter outlook, chipmakers are boosting production.

yckim@koreatimes.co.kr