iPhone and iPod consume 25% of Q3 NAND Flash capacity in meeting anticipated demand in 2H07, Says DRAMeXchange

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2007-07-18 15:52

Taiwan--(뉴스와이어)--Production snags in the migration to more advanced NAND Flash manufacturing processes has led to a lower-than-expected output. At the same time, with the iPhone and iPod set to consume a significant amount of Flash chips, the market has grown wary that a shortage may occur. In the near term, prices are expected to continuing rising.

For the past 3 months, the spot price and contract price of NAND Flash has risen rapidly. DRAMeXchange believes the price increases is attributed to problems in the transition to more advanced process technology. The resulting lower yield rates have caused a drop in the production output. With the iPhone and iPod expected to consume 25% of the Flash output, the tighter market supply may further drive up prices.

iPhone and iPod may consume 25% of NAND Flash production in 3Q07

Beginning from 2Q07, NAND Flash makers have started to produce chips based on even thinner circuitry. However, as the technology is not entirely mature yet, the current capacity has not been in line with original production plans.

According to DRAMeXchange's figures, in the wake of the expected hot iPod sales and chip inventory buildup for 4Q07, the iPhone and iPod will take up roughly 25% of worldwide NAND Flash production in 3Q07. As a huge portion of the capacity is being allocated to Apple in meeting the anticipated demand in 2H07, many downstream vendors have been unable to secure enough Flash chips.

A Flash chip shortage will occur in 3Q07

It will take roughly 2 to 3 quarters before manufacturers can raise their yield rates to a higher level. DRAMeXchange holds the view that a Flash chip shortage will occur in 3Q07. Coupled by the fact that many downstream vendors are beginning to stock up on inventory ahead of the Christmas sales, an insufficient supply should be seen in 3Q07. Flash prices are thus projected to continue rising.

About DRAMeXchange

DRAMeXchange is a global leading provider of market intelligence, in-depth analysis reports and consultant services on major electronics components. Our company consists of 2 major research divisions---DRAMeXchange and WitsView, which cover the DRAM, NAND Flash, PC and display research sectors. You can learn more about DRAMeXchange by visiting www.dramexchange.com.

In the year 2000, the company started to deliver market intelligence services under the name of DRAMeXchange technology. This included the current business environment, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

To further expand its research, DRAMeXchange acquired LCD research institute WitsView in 2006 to provide insights on the display industry.

About WitsView

WitsView is a subsidiary brand of DRAMeXchange, which provides prompt and credible market insights covering the quantitative pricing trend for both TFT-LCD panels and finished goods, industry updates and market intelligence. Founded in 2004, WitsView Technology Corporation is made up of a group of sophisticated industry analysts with years of experience, providing objective and strategic insights on the display industry. Additional information can be found at www.witsview.com.

웹사이트: http://www.DRAMeXchange.com