06:16 INTC Intel and Micron alliance raise concerns over a collapse in NAND flash prices- Reuters (25.25 )
Reuters is reporting the flash memory chip alliance between Intel (INTC) and Micron Technology (MU) raised concerns over a collapse in prices in the fast-growing $11 bln NAND flash market, which is dominated by Asian firms. Market leader Samsung Electronics fell 5%, wiping out $4.4 bln in market value. Toshiba, the world's second-largest NAND flash chip maker, lost $1.6 bln in market value after an 8.8% plunge. Third-ranked Hynix Semiconductor slid 8.3%. "With more players, the market concern is that a price drop would be more severe," said Jae H. Lee, an analyst at Daiwa Securities in Seoul. Shares in California-based flash chip maker SanDisk Corp. (SNDK) tumbled 16% on Nasdaq, while Taiwan microchip designer Silicon Motion (SIMO) fell 6.6%. Samsung has a 50% flash market share, Toshiba 23% and Hynix 13%. Intel and Micron said on Monday they would each contribute about $1.2 bln to form a venture dubbed IM Flash Technologies, targeting initial production of NAND flash chips in early 2006. At the same time, news emerged that Apple Computer (AAPL) would pay Samsung and Hynix $500 mln and $250 mln to secure flash memory chips for its market-leading iPod music player. The deals are part of a $1.25 bln pre-payment deal by Apple with Samsung, Toshiba, Hynix, Intel and Micron. |
