The global NAND flash memory market is expected to reach the balance of supply and demand in 2022, when the overall bit supply growth is expected to stay at about 30%, according to Wallace Kou, president for flash device controller specialist Silicon Motion Technology.

Kou said there is still no signs the market will be oversupplied, in response to some market observers indicating NAND flash prices will come under downward pressure starting the fourth quarter of this year.

NAND flash demand for datacenter and server applications remains robust, while demand for handsets will be picking up between the second half of the third quarter and the fourth quarter, Kou indicated.

Besides, the adoption of UFS 3.0 flash storage will be accelerating among midrange models in 2022, when the overall handset market registers a single-digit increase, Kou said. Multiple brand vendors also plan to incorporate UFS 4.0 flash storage into their flagship models slated for launch in 2023, Kou added.

In addition, the supply of flash device controller ICs has been tight so far in 2021, with the shortage likely to worsen next year, as 28nm as well as 40/55nm process capacities at foundries remain extremely tight, Kou noted. The overall 28nm, 40/55nm process capacity may fall short of demand by as much as 50% in 2022, Kou indicated.

Silicon Motion has raised its revenue growth outlook for 2021 to 65-70%, with US$1.5 billion worth of orders set to be fulfilled next year, according to Kou. The company also expects to see revenue top US$1 billion in 2023.

By: DocMemory
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