The supply of high-density NOR flash memory will remain tight through 2018, while the low-density market segment will be affected by China-based suppliers' new capacities, according to Macronix International chairman Miin Wu.

With fewer suppliers capable of producing high-density NOR flash chips, the memory shortage will still exist in 2018, said Wu. The supply of parallel NOR and other high-density NOR chips has been tight since the beginning of 2017 boosting the memory prices, as well as prices for serial NOR chips, Wu indicated.

Nevertheless, a number of China-based foundries are ramping up their output for NOR flash chips particularly low-density ones which may create supply-demand uncertainty, Wu identified. The supply of NOR chips in densities of 32Mb and below will be mostly affected by the rising output at China's fabs in 2018, Wu said.

Macronix has transitioned to 55nm process technology to manufacture its NOR flash products, Wu also disclosed. Sales generated from 55nm and 75nm processes accounted for a combined 54% of the company's total NOR flash revenues in the third quarter of 2017.

In addition, the supply of SLC NAND flash memory will also stay tight through 2018, Wu commented. Macronix uses mainly 36nm process to make SLC NAND chips, and is looking to migrate to a newer 19nm node in 2018 to further lower its manufacturing costs.

Sales generated from the communications sector accounted for 59% of Macronix' total SLC NAND revenues in the third quarter of 2017, followed by those from the consumer electronics sector with 32% and others with 9%.

In addition, Macronix has stepped into the development of eMMC products, 3D ROM and NAND flash technologies, according to Wu.

Macronix plans to introduce its 19nm eMMC modules utilizing the company's in-house developed flash controller chips in 2018, Wu said. The company's eMMC product line will target consumer electronics, communications and industrial applications in addition to smartphones. As for 3D NAND products, Macronix will continue its R&D efforts expecting to bear fruit after 2-3 years.