Flash memory
Manufacturing growth at Samsung and Hynix has slowed in the second quarter of this year

Flash chips in short supply

OEMs faced with high prices as supply shrinks

Written by Shaun Nichols

Samsung and Hynix, two of the largest global Flash memory manufacturers, are having trouble producing enough Nand chips to meet demand, according to recent reports. 

Taiwan-based news outlet DigiTimes cited sources within the manufacturing industry allleging that the two Korean firms are having trouble fulfilling orders from OEMs. 

Apple was given much of the credit for the shortage, as the company is believed to be hoarding large volumes of the chips which are used in the iPhone and two iPod models. 

US-based spokespersons for Samsung could not be reached to comment on the report.

Nam Hyung-Kim, director and principal analyst at research firm iSuppli, was unable to verify the reported shortage, but noted that manufacturing growth from both companies has slowed in the second quarter of this year. 

"The real issue is being driven by supply, not demand," he told vnunet.com

Kim explained that chipmakers scaled back production in the second quarter in an effort to push prices back up after seeing dips early in the year.

While the chipmakers benefit most from the short supply and high prices, Kim said that he does not expect larger manufacturers to have any trouble obtaining enough Flash chips.

It is the smaller OEMs that will suffer most from the short supplies and high prices, according to Kim. The analyst expects supplies to climb by August and to steady prices.

Tags:

Further reading

Samsung intros 64GB solid state drive

Flash drives are the future, says electronics giant   More...

Samsung turns to overseas LCD suppliers

Cost control helps Korean giant retain LCD market share lead   More...

Samsung promises sub-$1,000 52in LCDs

Key component of large flat screen TVs to get much cheaper   More...

Asian chip makers open their wallets

Samsung alone to spend $6.74bn this year   More...

Related articles

Nand Flash sales rise 37 per cent

But market leader Samsung drops five per cent market share   More...

Apple boosts margin on iPhone 3G

Cheaper for consumers, but not for telcos   More...

iPod Touch offers iPhone without the phone

Media player gains Wi-Fi and touch screen   More...

iPod Touch 'not just a cut-down iPhone'

Under-the-hood analysis reveals fundamental differences   More...

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

25 Jul 2008

7.85 MBPodcast Special: Views from the Valley More...

24 Jul 2008

3.68 MBSpammer jailed, Esquire e-cover, and network passwords More...

23 Jul 2008

2.99 MBSmall time security, official 'spying' requests and a spammer jail break More...

Poll

EUROPEAN E-COMMERCE

EUROPEAN E-COMMERCE

Are you happy making an online purchase from another European country?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Credit card transaction

Credit card fraud rampant in the UK

Attempted frauds go unreported and ignored, analysts claim   More...

Intel

Intel rolls out new embedded line-up

System-on-a-chip offerings promise footprint and power saving   More...

Advertisement

Network cables

Tech giants collaborate on wireless HD

Another attempt at cable-free transmission in the home   More...

iPhone fever fills AT&T coffers

US provider cashes in on Apple smartphone   More...

Advertisement