NAND Topped 2005 Flash Market
Online staff -- EDN, March 28, 2006
The flash memory market enjoyed another solid year of growth in 2005, largely bolstered by NAND flash, according IC Insights’ March update to its annual McClean Report.
The flash memory market racked up sales totaling $18.6 billion, a 19 percent increase from $15.6 billion in 2004, driven by demand from consumer and communications applications, said the Scottsdale, Arizona-based research firm.
Within the flash market, however, IC Insights reported the NOR and NAND segments headed in opposite directions. The NOR market declined 13 percent to $8 billion, while the NAND segment grew 64 percent to $10.6 billion. In 2005, unit shipments of NOR flash increased 9 percent to 4.1 billion, while shipments of NAND devices increased an impressive 88 percent to 1.2 billion.
Final 2005 ranking of flash memory suppliers showed that most vendors that provided NAND flash memory benefited from strong product demand, said IC Insights. Topping the list of flash memory suppliers for 2005 was Samsung, a position it has held for the past few years. Samsung’s flash sales (including internal transfers) grew 47 percent to nearly $6.6 billion, representing 35 percent market share. An agreement in November with Apple to supply flash memory for the iPod Nano accelerated Samsung’s second half sales and unit output.
Toshiba, also a provider of NAND flash memory, retained the No. 2 position with flash sales that increased 13 percent to $2.5 billion. Toshiba’s flash market share was 13 percent in 2005, down one point from 2004.
Intel, AMD/Spansion and STMicroelectronics ranked third, fourth and fifth, respectively, in flash sales for 2005. All three suppliers are predominantly makers of NOR flash memory. However, both Intel (with Micron to form IM Flash Technologies) and STMicroelectronics (with Hynix to form Hynix ST Semiconductors) took steps to become actively involved in the hot NAND flash segment for this year and beyond.
Hynix Semiconductor enjoyed one of the fastest flash sales growth rates in 2005. Its sales jumped to $1.26 billion, an increase of nearly 600 percent from $220 million in 2004. Its flash memory sales accounted for 40 percent of its total quarterly revenue in Q4 2005. Although it still has quite a way to go before reaching the flash sales level achieved at rival Samsung, IC Insights noted that Hynix could very well pose a threat to Toshiba as the second-largest supplier of NAND flash memory in 2006.
Also making NAND flash predictions today was El Segundo, Calif.-based market research firm iSuppli Corp., which expects the market will total $13.8 billion this year, trimmed down from its earlier expectation of $16 billion.
LEADING FLASH MEMORY SUPPLIERS ($)
|
2005 Rank |
Company |
2004 |
2005 |
Percent Change |
Percent Marketshare |
Emphasis |
1 |
Samsung |
4,475 |
6,580 |
47% |
35% |
NAND |
2 |
Toshiba |
2,206 |
2,500 |
13% |
13% |
NAND |
3 |
Intel |
2,285 |
2,278 |
0% |
12% |
NOR |
4 |
AMD/Spansion |
2,343 |
1,912 |
-18% |
10% |
NOR |
5 |
ST |
1,169 |
1,320 |
13% |
7% |
NOR* |
6 |
Hynix |
220 |
1,260 |
473% |
7% |
NAND |
7 |
Sharp |
895 |
850 |
-5% |
5% |
NOR |
8 |
Renesas |
865 |
831 |
-4% |
4% |
NAND |
9 |
SST |
405 |
394 |
-3% |
2% |
NOR |
10 |
Micron |
15 |
275 |
1733% |
1% |
NAND |
SOURCE: IC INSIGHTS, COMPANY REPORTS
* Flash sales were approximately 85% NOR, 15% NAND.
