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...

Samsung Electronics 'ripe' for takeover

Speculation rife as profit margins hit four-year low   More...

Intel and STMicro spin off Flash businesses

Flash memory branches to create new company   More...

iPod Touch offers iPhone without the phone

Media player gains Wi-Fi and touch screen   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

16 May 2008

2.97 MBXP on OLPC, broken dreams and Yahoo fights back More...

15 May 2008

3.28 MBDark fibre, mobile TV and solar power More...

14 May 2008

2.66 MBOnline inequality, mobile thumbprints and corporate raids More...

Poll

HOME WORKING

HOME WORKING

Do you let any or all of your employees work from home?

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

OLPC

OLPC to ship with Windows XP

Microsoft teams up with One Laptop per Child project   More...

The Sims

The Sims goes flat-pack with Ikea

Virtual world gets Swedish wood   More...

Advertisement

Microsoft-Yahoo

Yahoo board fights back at Icahn

Investor accused of 'significant misunderstanding' in Microsoft saga   More...

MySpace

Woman charged over MySpace suicide

Lori Drew indicted on federal charges   More...

Advertisement