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Low Density NAND Flash Memory Stays Strong for 2008

Silicon Motion

While forecasting strong sales and profitability in 2008, Silicon Motion projects that demand for low-density NAND flash will beat that for the high-density segment, driven by demand for microSD cards and embedded memory, said company president and CEO Wallace Kou.
Silicon Motion guides that annual sales will grow by 25-35% on year with gross margins to stay in the range of 52-53% in 2008. Although memory makers strive to migrate NAND flash applications to higher density under sales and profitability concerns, that makes no difference for controller makers, Kou said. For a controller IC design house, he stressed that memory density has no relationship on controller sales, given that any NAND flash application (such as USB drive or memory card) only requires one controller, regardless of memory density.
In light of global economic trends, Kou said demand for low-density NAND flash products should be better, partially due to sales spurred by the bundling of memory cards with handsets. Demand for microSD cards will continue to expand in 2008, Kuo said. Out of the 96.3 million units of controllers shipped in the fourth quarter, 89.3 million were for memory cards and USB drives, he detailed.

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