With the current supply can only satisfy 75% of the demand, Nand flash memory is in shortage, and the situation will remain for at least one more year, an industry new source said.

Renesas Technology has ramped up production, and market entries are expected from Infineon Technologies and the STMicroelectronics/Hynix alliance.

At Infineon, CEO Harald Eggars said: "We will qualify a 512Mbit device by the end of the year and will be in volume production next year."

ST/Hynix is also starting with a 512Mbit memory. "Production will start at Hynix in Q4," said Carlo Bozotti, general manager of the memory products group at ST.

Overall flash sales (NAND and NOR) will grow by 44 percent in 2003 to more than $11 billion, according to iSuppli. This makes flash the fastest growing product in the chip industry while NAND is the fastest growing flash-type, representing 40 percent of the overall flash market in 2003, up from 10 percent in 2001.

In Q3, Samsung and Toshiba overtook the former number one and two flash players, Intel and Spansion (the AMD/Fujsitu flash alliance), which are primarily NOR-type suppliers. Intel said it won't compete in NAND flash.

By: DocMemoy
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