2011 NOR Flash Memory Predicted to Decline in Revenue

Published:2011/2/25 5:22:00 Author:Amy From:SeekIC

According to the new research of iSuppli that global NOR flash memory will have a 6 percent decline in 2011 after a record high last year. The industry will meet a set of challenges which can be regarded as the sign of difficulty will be facing the next few years.

It is predicted that flash memory revenue will drop to $4.6 billion in 2011 from $5.1 billion of the preceding year. The industry increased by 10.9 percent benefited from resurgence of economy last year, which is regarded as the best year of flash memory since 2004. The shipments of NOR keep increasing for it has more applications in more areas while its continuously downward ASP lead to frustration of revenue which can be learnt that the situation will last for years. NOR can be adopted in various consumer electronic products as a flash memory used for data store and program running such as handsets, PC, hard disk, DVD player, television and set-top box. Recent years, the share of NOR in flash memory market is constantly losing by NAND flash memory which has lower cost but higher storage capacity.

The research of IHS iSuppli shows that sales of NOR grew sharply last year because of supply reduction after demand recovery. It is worth mentioning that the first half year of 2010 was satisfactory in addition that the rebound shipments boosted the NOR revenue just as suppliers optimistically forecasted.

However, the market rebound only lasted for short time. The situation of the second half year of 2010 was very disappointed. The shipments of the fourth quarter only achieved 6.4 percent increase which was much lower than expectation of two-digital growth. Afterwards, the price was softening caused by oversupply in addition to tablet PC’s emergence which became a further threat to NOR.

After hit its historic record last year, NOR industry has been facing a harsh reality with market share losing, price reduction and revenue shrink. The related integrated circuit is AD8605ART.

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