Memory controller IC design houses are bracing for losses for the third quarter because of a NAND flash shortage.

Many memory controller IC designers such as Skymedi, Solid State System, and Incomm have fallen victim to the NAND flash shortage, as many memory module makers are sourcing memory cards directly from NAND flash makers. As a result, the design houses saw drastic drops in their revenues for July, the observers said.

Citing Skymedi as an example, the observers revealed that the designer's monthly sales reached as much as NT$165 million (US$4.99 million) in the past, but its sales for July dropped to NT$51 million after its major client, Kingston Technology, reduced orders for controller ICs while directly sourcing memory cards from Toshiba.

Although memory controller designers' sales showed signs of rebound in August, significant rises will have to wait until the NAND flash shortage eases in September, the observers indicated. But Skymedi, Solid State and Incomm may see losses for the third quarter, the observers added

By: DocMemory
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