The Insatiable Demand for Flash Memory: Intel's Revival and the Rise of Asian Manufacturers

Strategic Insights -

As the demand for flash memory continues to skyrocket, Intel has announced a joint venture with Micron to produce flash memory chips using its new 45-nanometre technology. This move signals a significant shift in the industry, with Apple backing the initiative to reduce its reliance on Asian manufacturers. The market has grown by over 100% in the past two years, with market leaders Samsung and Toshiba struggling to keep up with demand.

Key Takeaways:

  • Intel has re-entered the memory market after a 15-year hiatus, with a joint venture with Micron to produce flash memory chips using its new 45-nanometre technology.
  • The market for flash memory has grown by over 100% in the past two years, with demand outpacing supply.
  • Market leaders Samsung and Toshiba are struggling to keep up with demand, with Intel's return to the market set to challenge their dominance.
  • The Intel-Micron venture is backed by Apple, which is seeking to reduce its reliance on Asian manufacturers.
  • Samsung remains the world's largest supplier of flash memory, but is facing competition from Korea's Hynix, which has been a major player in recent years.
  • The Japanese industry is under threat from Korean manufacturers, with Hynix facing an anti-dumping tariff from the Japanese government and patent infringement lawsuits from Toshiba.
  • The market for memory chips is highly competitive, with tight pricing and availability influencing millions of dollars in revenue for manufacturers.
  • The demand for flash memory is driven by the growth of smaller, portable devices such as iPods and smartphones.

Statistics:

  • The market for flash memory has grown by over 100% in the past two years.
  • Intel's new 45-nanometre technology will consume less than half the power of current flash memory chips.
  • Intel's iPad-compatible flash memory drive capacities have reached 20 Gb.
  • Dr Fujio Masuoka of Toshiba invented the first flash memory technology in 1984.
  • The Intel-Micron joint venture will see the production of flash memory chips in two new plants in Israel and Arizona.

Sources:

  • "New York Times", November 2006.
  • "Intel to Enter Flash Memory Market Again After 15-Year Absence", Bloomberg, November 2006.
  • "The Insatiable Demand for Flash Memory", The Register, 15 Jan 2007.
  • "Apple Pins Hopes on Intel Flash", InternetNews, January 2007.
  • REUTERS, Samsung, Intel, and other manufacturers mentioned.