NAND flash sales -- and prices -- surge
Sales grow by 30% in year ended June 30; Samsung still leads the way followed by Toshiba and SK Hynix, which has passed Micron in flash market share
Computerworld - Sales of NAND flash technology rose 11% from the first to second quarters this year, and 30% for the year ending June 30, even as prices have surged.
For instance, the price of a 64Gbit NAND flash chip rose from $3.69 earlier this year to a high of $7.50 today, according to market research firm TrendForce.
Shipments of both enterprise multi-embedded multi-media cards (eMMC) and solid-state drives remained steady through the second quarter of 2013 as suppliers shipped $5.77 billion dollars worth of flash products, according to TrendForce.
The $5.77 billion represents an 11.2% increase from the first quarter, Trendforce stated, adding that it is "optimistic on long-term industry growth."
Samsung continued to hold a commanding lead over other NAND flash suppliers.
Samsung sold $2.2 billion of flash in the second quarter, or 37.8% of total flash sales. Samsung was followed by Toshiba, which reaped $1.7 billion in sales, or 28.7% of the total; SK Hynix with $840 million, or 14.5%; Micron with $678 million, or 11.7% ; and Intel with $413 million in flash revenue, or 7.2% of the market.
Samsung's flash sales benefited from stable growth in the smartphone and tablet market, as well as steady sales of SSD, eMMC and embedded multi-chip package (eMCP) sales, TrendForce stated in its report today.
Samsung also leads the industry in triple-level cell (three-bits per cell) SSDs and it is migrating from 21 nanometer (nm) to 19nm process technology.
With the NAND flash industry making a dramatic recovery from last year when sales had slowed, Toshiba has set its target memory revenue increase at 12% for this year. Since the manufacturer returned to fully loaded capacity in the middle of the second quarter, TrendForce forecasts Toshiba will see a 9% to 10% shipment increase in the third quarter. Toshiba is also moving to 19nm process technology.
According to SK Hynix's second quarter financial report, the manufacturer's NAND flash revenue reached $840 million, a whopping 31.3% increase over the first quarter, making SK Hynix the supplier with the highest percentage revenue growth for the second quarter of 2013, according to TrendForce.
SK Nynix edged out Micron for third place in marketshare. TrendForce attributed SK Hynix's growth mainly to strong eMMC and eMCP shipments.
"China's rapidly growing smartphone market has contributed significantly to SK Hynix's NAND flash revenue, pushing its bit shipment volume growth to 29%, while ASP also rose, by 5%. Third quarter bit shipment volume is expected to increase by 20%," Trendforce stated.
Meanwhile, Micron's NAND flash revenue fell by 4.5% in the second quarter from the first to $678 million. Micron's average selling price increased by 8% in the second quarter over the first, as NAND flash prices overall rose. However, as the proportion of specialty products increased and the manufacturer's migration to the 20nm process is slightly lagging, average cost also increased by 1%.
Lastly, Intel experienced strong demand for its enterprise-class SSDs, TrendForce stated. The growth was attributed to the popularity of cloud computing.
"However, restricted by limited capacity and a relatively slower migration to the 20nm process, [Intel's] second-quarter NAND flash revenue only increased by 1.2% quarter over quarter, arriving at $413 million," TrendForce stated.
TrendForce expects that as the Intel's 20nm flash memory output grows, product performance will improve.
Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian, or subscribe to Lucas's RSS feed . His email address is firstname.lastname@example.org.
Read more about Data Storage in Computerworld's Data Storage Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Using VM Archiving to Solve VM Sprawl This CommVault whitepaper discusses how archiving virtual machines can mitigate VM sprawl with a comprehensive approach to VM lifecycle management.
- Keep Your Network Available, Efficient and Secure Make the most of your network by working with experts who "get it." CDW and F5 have partnered to keep networks highly optimized....
- VCE Converged Infrastructure Enables Continuous Operation for Swiss Power Plant Read how Vblock™ Systems, running in active-active mode, enabled KKL to transform its twin data centers in just two months, enable continuous operations,...
- The Future of IT: A Customer First Approach Explore how customer-first policies can make use of social, mobile and cloud technologies to give workers the freedom and flexibility they desire to...
- Make or Break: New Auto Products Must Go To Market On Time This Webcast quantifies the value of time to market for the auto industry and highlights how Primavera Enterprise Portfolio Management can help organizations.
- IBM Flash Webcast: Optimizing your Datacenter for Efficient Storage & ROI Register for this webcast to learn the benefits of flash storage from IBM Customer, Leonardo Irastorza of Royal Caribbean Cruise Ltd and Storage... All Data Storage White Papers | Webcasts