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iSuppli: Flash-Memory Market Stabilizing

3/26/2007 01:05:00 PM Eastern

El Segundo, Calif. — The steep price erosion that has beset the flash-memory market thanks to an over-supply of NAND flash will abate, somewhat, in the coming weeks, according to research firm iSuppli.

Based on the firm’s DRAM Dynamics memory tracking report, supply and demand in the NAND flash-memory market is approaching a better balance.

On the supply side, the growth in the amount of flash supplied by the market’s major manufacturers, Samsung and Hynix Semiconductor, is slowing. These two South Korean companies control 63 percent of the NAND market, the firm noted.

On the demand side of the ledger, OEMs are predicted to buy more NAND to grab supply at “fire sale prices. They will do this in anticipation of a potential shortage in the second half of 2007, which should lead to a slowing in the rate of price erosion,” iSuppli said.