The supply of high-end NOR flash memory chips continues to be tight though the supply of low-end ones has risen substantially to affect the chip prices, according to Macronix International chairman Miin Wu.

Prices for entry-level NOR flash memory chips are still under downward pressure, but prices for high-density products are expected to remain stable, Wu indicated.

Macronix has put increased focus on its high-density NOR flash chips for automotive and IMA (industrial, medical and aerospace-defense) applications, Wu said. Sales of Macronix' high-density chips for auto and IMA applications accounted for a combined 25% of the company's total NOR flash revenues in the third quarter of 2018, up from 17% a year earlier.

In addition, Macronix has expanded its auto NOR flash presence in the Japan market since 2018, Wu noted. Shipments of the company's auto NOR flash chips to Japan have risen at a gradual pace, Wu said.

According to China-based CINNO Research, the global NOR flash industry came to US$660 million in output value in the third quarter of 2018, down 2% sequentially. The industry output value is expected to register another sequential decrease of 2-3% in the fourth quarter.

The global NOR flash industry output value is forecast to drop 5-10% in 2019 following an about 11% increase in 2018, said the research firm.