Oversupply of Flash Memory Brings Down Prices: Survey
February 28, 2001 (TOKYO) -- Worldwide production of NOR-type flash memories in 2001 is expected to increase 39 percent over the previous year to US$12.4 billion, according to a survey by Nikkei Market Access.
The total production in volume will rise 96 percent when converted into bits. The increase is about the same level recorded in 2000, which is 109 percent. The low increase rate in value compared to the rate in volume is because the oversupply of the DRAM has caused prices to fall.
Lower Price of Flash Memory Helps Development of Java Cell Phones
According to Nikkei Market Access, the reason for the oversupply of flash memories is DRAM makers' plans for ramping up production lines in the first half of 2000, when flash memories were out short. The new production lines will start production during the second half of 2000 through 2001.
Some makers have halted production, but because there is no doubt that the demand for flash memories will surge over the next few years, most makers continued investing in their production lines, the survey said.
In addition, an increasing number of DRAM makers have entered the industry. Since DRAMs are no longer making profits, DRAM makers are entering the flash memory market on a full scale.
Samsung Electronics Co., Ltd. and Hyundai Electronics Industries Co., Ltd. of Korea, Micron Technology Inc. of the United States and Hitachi Ltd. of Japan, which is producing a small amount of flash memories, will begin full-scale production in 2001, the survey said.
Cellular phone handset companies are welcoming the fall in flash memory prices, because they can increase the capacity of flash memory for Java-compliant cellular phones to 64Mb without raising the cost much.
(Nikkei Market Access) |
