NAND flash device controller supplier Silicon Motion Technology is expecting a shortage for the NAND flash industry in the second half of 2016.

A shortage of NAND flash chips will be caused by robust growth in the SSD market, according to Silicon Motion president and CEO Wallace Kou. SSD storage demand for data centers will be huge in 2016, said Kou.

SSD demand has also been driven by the booming DIY market particularly in China, Kou indicated.

On the supply side, major NAND chipmakers, except Samsung Electronics, are focused on moving their 3D products to volume shipments, while their supplies of 2D flash chips will stay flat, Kou said. The overall supply of NAND flash memory will not be scaled up substantially in the second half of 2016, Kou added.

Silicon Motion shipped more than 20 million SSD controller chips in 2015. Shipments for 2016 are expected to surge 100%, Kou noted.

Silicon Motion reported net income (non-GAAP) of US$24.3 million or US$0.68 per diluted ADS on net sales of US$112.7 million for the first quarter of 2016. The results all hit the highest quarterly levels in the company's history.

By: DocMemory
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