Hynix's DRAM bit shipments out-paced all its rivals as it aggressively ramped its new JV 300mm fab in China. Units grew 31 percent in the fourth quarter compared to the third, surpassing projections from the market research firm. Hynix's revenues for the fourth quarter surged 42.9 percent to $2.1 billion compared to $1.4 billion in the third quarter.

In contrast, Qimonda's revenues actually declined by 2 percent in the fourth quarter compared to the third because its shipments decreased by 3 percent. Qimonda fell behind Hynix by $545 million in the fourth quarter, and lost control of the second position, which it had retained through the year on strong revenue growth of 66 percent.

"Hynix's success was due to its aggressive migration to 80 nanometer process technology and its fast ramp-up of its Wuxi fab in China," said Nam Hyung Kim, director and principal analyst for iSuppli.

Other changes occurred in the lower rankings as Elpida surpassed Micron Technology for the first time ever in the fourth quarter to become the number-four DRAM supplier. Elpida attained an 11.1 percent market share in the fourth quarter, while Micron's portion of global DRAM revenue dropped to less than 10 percent to reach 9.5 percent, according to iSuppli's preliminary market share estimate. Elpida had DRAM sales rising by nearly 100 percent in 2006.

Due to its ongoing diversification efforts, Micron's DRAM sales declined by 3 percent in 2006, missing out on the dramatic growth in the DRAM market in 2006.

The market research firm believes that the capital expenditure plans of Samsung, Hynix and Powerchip Semiconductor in 2007 will put further market share pressure on rivals.

The global DRAM market grew by 36 percent to $33.9 billion, which is higher than iSuppli's previous forecast from the fourth quarter of 34 percent growth and $33.2 billion in revenue.