Chip shortage threatens electronics market -FT
LONDON, Sept 24 (Reuters) - Makers of mobile phones, hand-held computers and other
electronic goods may not be able to meet demand due to a shortage of flash memory chips,
the Financial Times reported on Friday.
Some mobile handset manufacturers including France's Alcatel have indicated that output is
being constrained by the shortage, the paper added.
The world market for flash memory chips -- lightweight storage devices that retain memory when power is switched off -- is
expected to reach $3.24 billion this year, up from $2.49 billion in 1998. Semiconductor market research group IC Insights is
forecasting $4 billion for 2000.
These chips are made by Intel Corp (Nasdaq:INTC - news), the world's largest chipmaker, and a handful of other U.S,
Japanese and European companies.
Alcatel will lift its GSM mobile phone handset output to between 10 and 11 million units this year, but it could have sold more
had components not been in short supply. However, Finland's Nokia and Sweden's Ericsson said they have enough
components to meet production this year.
Intel says worldwide demand for the chips jumped to 240 million units in the latest quarter from 160 million units in the fourth
quarter of last year, but said it was still able to meet commitments to customers.
But Benny Ginman, a director of Intel in Europe, said his group was ''not in a very good position'' to take on additional orders.
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