NAND flash demand for smartphones and tablet PCs will become strong to outstrip supply substantially in the second half of 2011, according to David Sun, co-founder of Kingston Technology.

Meanwhile, PC-use DRAM memory will also be in tight supply in the latter half of the year as major producers allocate more of their capacity to products targeting applications beyond PCs, said Sun.

NAND chips are already in a state of short supply, but issues relating to raw material supplies are not the main causes, Sun indicated. Tablets have created a new market and brightened the sector's outlook, while demand for smartphones and other mobile device applications is steadily rising, Sun said.

In addition, Sun believes that the PC DRAM industry is unlikely to suffer oversupply throughout the second half of 2011. Companies give more emphasis to mobile RAM and server-use DRAM, which have better growth potential. Consequently, more capacity will be allocated to these faster-growing segments at the expense of PC DRAM, Sun said.

There will still be demand for PC DRAM, when the market for mobile DRAM expands thanks to its adoption in tablets, Sun commented. However, rising tablet demand could squeeze the notebook market, Sun noted.

By: DocMemory
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