NAND Flash controller IC firm Phison Electronics will strengthen its collaboration with existing partners and explore new ones in a move to boost the company's competitiveness, according to company chairman Khein Seng Pua.

　　The NAND Flash controller sector will be pushed into another wave of consolidation, with more less-competitive players being merged or squeezed out of the market, said Pua. Phison will be aggressive to invest in R&D while developing closer ties with strategic partners, Pua indicated.

　　Pua expressed optimism about growth in demand for embedded memory devices. The smartphone market will continue to expand in 2014 stimulating demand for embedded flash memory. Meanwhile, NAND memory content in smartphones is also rising.

　　In addition, the growing markets for SSDs and eMMC devices will contribute positively to the demand side, Pua noted.

　　Phison is looking to upgrade its process technologies for the manufacture of controllers for the use of SSD and eMMC devices in 2014, Pua also pointed out. Production of SSD controllers will migrate to 28nm node technology from 55nm in the fourth quarter of 2014. As for eMMC device controllers, mass production using 40nm process technology will kick off in the second half of the year.

　　On the supply side, Pua suggested that an oversupply is unlikely to take place in the short term. Though Samsung Electronics is set to start operating its new memory fab in Xian, China, initial output from the facility will be small during 2014, Pua said. Meanwhile, Toshiba's Phase 2 of Fab 5 at the company's Yokkaichi operations memory production facility in Mie Prefecture, Japan is unlikely to enter mass production until early 2015, Pua reckoned.

　　Phison reported pre-tax profits of NT$3.76 billion (US$123.9 million), or NT$20.82 per share, on revenues of NT$33 billion for 2013. Net EPS is estimated at NT$17-18. The company plans to deal out a cash dividend of NT$10 for its 2013 operations.