Wallace Kou, General Manager of Silicon Motion Technology, a leading manufacturer of flash control ICs, indicated that NAND flash quote is lack of triggers to sustain the momentum for edge up in the second half of this year as the market is short of significant application end. But for next year, as SSD is certain to replace traditional HDD in low-cost PC market, along with the popularization of low-cost PCs, the oversupply NAND industry will find a new solution.

Influenced by the oversupply and weak demand in the terminal market, pessimistic atmosphere hangs over the market of NAND flash related products lately, Wallace Kou also hold a similar opinion over the market. He pointed out that NAND market relied heavily on Apple orders before. Previously, if Apply Inc. began to place orders to purchase large amount of NAND products, the market condition would turn better quickly, even causing a shortage of the supply. But “Apple Effect” doesn’t work this year. The market is in short of a significant NAND flash application terminal to digest oversupply NAND output.

In recent years, international NAND manufacturers endeavor to increase their output, leading to an imbalance of supply and demand in the market currently. Industry makers made the excessive NAND chips into flash cards or move disks and sold them at low prices, making the industry unhealthy, even pose bad influence on other related industry. Wallace Kou commented that NAND market in 2H08 will not turn better and the quote will not edge up.