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NAND flash demand to shoot up in '08

Posted: 11 Jan 2008 ?? ?Print Version ?Bookmark and Share

Keywords:NAND flash demand? PMP? USB flash drive?

Market tracker DRAMeXchange forecasts demand for NAND flash will increase by 130 percent y-on-y, with the chunk of demand coming from major end user segments, notably mobile handsets, MP3 devices/personal media players (PMP), digital cameras and USB flash drives.

Supply bit growth is expected to be 130-140 percent in 2008, with most suppliers expected to expand manufacturing capacity as well as aggressively migrating nodes, leading to supply/demand equilibrium by the second half of the year. DRAMeXchange predicts 60 percent of NAND flash production will be in the 5x nm range by the end of the year.

Demand from mobile handset makers is expected to increase by just over 10 percent over the year to be worth $1.23 billion. The next biggest sector will be MP3/PMP devices, growing by 20 percent to be worth $200 million, followed by USB flash drives, which will grow by 25 percent y-on-y according to the researchers to be worth $170 million. Growth from the digital cameras market is expected to be 14 percent this year, to be worth sales of $130 million.

The analysts still anticipate that tight supply could be a problem in Q3, "with Apple continuing to exert a strong influence over the price trend." Apple normally starts increasing its procurement levels in the third quarter, DRAMeXchange added.

Demand for low-cost PC and SSD makers is also expected play a part in determining the market equilibrium.

- John Walko
EE Times Europe

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