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NAND demand to increase 130 percent


Wednesday, January 9, 2008 Demand for NAND flash is expected to increase by 130 percent year-on-year, expressed as bit growth, according to market tracker DRAMeXchange.

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, the market research group suggested.

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 year-on-year 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 the third quarter, "with Apple continuing to exert a strong influence over the price trend."

DRAMxChange adds Apple normally starts increasing its procurement levels in the third quarter.

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

By: DocMemory
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