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| Image: Physorg |
Fashion and high-end products such as smartphones, flat-screen TVs, and gaming consoles equipped with NAND flash technology are expected to drive semiconductor chip production beyond expectations in the next 18 months.
The Japanese research company Nomura Securities predicts that the number of semiconductor products shipped globally will increase by 6.9% this year and 10.3% next year. The reason behind Nomura’s optimism about the future of flash memory is the 15% increase in smartphone sales in 2005 compared to 2004. Flat-screen TVs and gaming consoles are also significant factors stimulating the semiconductor market.
However, the company also warns that the personal computer sector is growing much more slowly compared to other consumer electronics segments. Additionally, an excess of existing chip inventory may lead to a temporary decrease in chip production towards the end of the year.
Some other research organizations are more cautious and believe that predicting the demand for flash memory in the near future is still uncertain. For instance, Sony’s new generation handheld gaming device, PlayStation Portable (PSP), is expected to use NAND Flash technology. However, there are currently concerns regarding this development.
“The agreement between these two companies has a significant impact, as the memory allocated for PSP 2 alone accounts for 8% of the entire flash market,” commented Jay Kim, an analyst at Hyundai Securities (South Korea).
T.N.
