Having fallen dramatically during 2011, prices for NOR flash memory are expected to stabilize this year, according to industry sources.
The NOR flash industry enjoyed a period of unusually strong growth between the second half of 2009 and first-half 2010, when demand picked up along with the global economic recovery as well as more diversified end-market applications. With demand outstripping supply during the period, prices for the memory were boosted during the period.
However, the last NOR flash market boom appeared to be short-lived. NOR flash demand has slumped since the second half of 2010, mainly due to a shrinking PC market, the sources observed. Conventional PCs use more chips than those required by the current popular tablets, the sources said.
A weak second half led to less-than-expected growth for the NOR flash market in all of 2010, the sources indicated. The sector suffered a decline in 2011 with ASPs falling more than 50%, the sources said.
Looking forward, the sources believe NOR-chip prices will start to stabilize in 2012 supported by demand coming from non-PC applications. In particular, the market for serial flash, which has been identified as a fast growing segment for NOR flash - is set to expand thanks to the chip's growing adoption among automotive, mobile and handheld products, the sources noted.
Taiwan-based NOR flash chipmakers Winbond Electronics and Macronix International have both developed complete serial flash portfolios. Winbond's serial parallel interface (SPI) NOR chips are being used in smartphones and Bluetooth headsets, while Macronix has grabbed new orders for automotive dashboard displays, the sources said.