Spansion tops Intel in tough NOR flash market

February 8, 2007 – Market conditions for NOR flash memory weren’t as harsh as in 2005, but it’s still no picnic with ASPs still getting pummeled, especially in the mobile phone sector, according to data from iSuppli Corp.

Worldwide NOR flash revenue rose about 8.1% to $8.49 billion in 2006, led by new king Spansion, which enjoyed 25% growth (and a 10% slide by Intel) to take the top spot for the year, and tack on four percentage points to its annual market share (30.4%). Nos. 3-4 STMicroelectronics and Samsung also surpassed the market’s total growth, with 21.2% and 36.1%, respectively, while Intel lagged behind in a tough year, falling nearly 10%.

Despite rebounding from a “brutal” 15.5% decline in 2005, the NOR flash market was still a tough place to be in 2006, according to Mark DeVoss, senior analyst with iSuppli. Despite increasing unit shipments, suppliers continued to post losses due to severely eroding ASPs in all market segments, but particularly in the largest market segment of mobile phones, he said, in a statement.

Spansion posted the top revenues in the segment in 4Q for the fifth consecutive quarter, but its $687 million in revenues were about 5% below expectations, and the company missed breakeven operating margins, “attributable mainly to a large miss at a single customer in the mobile-phone segment,” according to the analyst firm. Intel, meanwhile, boosted NOR flash sales by nearly 14% in 4Q to $531 million, which suggests it is “girding itself for a head-to-head battle with Spansion,” the firm said.

Intel and ST had a particularly challenging time this past year in the NOR flash segment, both trying to integrate their NAND flash operations and prop up bottom lines, and rumors have swirled about a possible consolidation or even an exit from the market. In December ST essentially created a separate flash memory group amid a product business reorg, to address “industry consolidation and financial deconsolidation.”

Top worldwide NOR flash suppliers, 4Q06 & 2006
(Revenues in US $M)

Company………….4Q06 sales (est.)…..vs. 3Q06……vs. 4Q05……2006 sales (est.)……vs. 2005
Spansion……………………..687…………………1.8%……….14.3%……………2579……………….25.6%
Intel…………………………….531……………….13.9%……..-11.5%……………2052………………..-9.9%
STMicroelectronics……….317……………….-5.4%………..-5.4%……………1340……………….21.2%
Samsung……………………..180……………….24.1%……….57.9%……………..584……………….36.1%
Silicon Storage Tech……….84………………..-2.3%……..-16.8%……………..329…………………0.0%
Others…………………………409………………..-5.1%…………2.5%……………1609……………….-3.2%
TOTAL……………………..2208…………………3.3%…………2.7%……………8493………………..8.1%

Company……….4Q06 share……….vs. 3Q06……….vs. 4Q05……….2006 share……….vs. 2005

Spansion…………………..31.1%…………..31.2%…………..28.0%………………30.4%…………….26.1%
Intel………………………….24.0%…………..21.6%…………..27.9%……………..24.2%…………….29.0%
ST Microelectronics……14.4%…………..15.5%…………..15.6%………………15.8%…………….14.1%
Samsung…………………….8.2%…………….6.7%…………….5.3%………………..6.9%………………5.5%
SST…………………………..3.8%……………..N/A……………..4.7%………………..3.9%………………4.2%
Others………………………18.5%…………..21.0%…………..18.6%………………18.9%…………….21.2%
TOTAL…………………..100.0%…………100.0%…………100.0%…………….100.0%…………..100.0%

WaferNEWS source: iSuppli Corp.

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

LIVE NEWS FEED

NEW PRODUCTS

OEM Group expands P5000 capabilities to compound semiconductor substrates
05/25/2017OEM Group has launched the P5000:CS automated single wafer cluster tool for the compound semiconductor market. ...
3D-Micromac launches the second generation of its high-performance microcell OTF laser systems
04/17/2017The high-performance production solution for Laser Contact Opening (LCO) of PERC solar cells achieves a th...
ULVAC launches NA-1500 dry etching system for 600mm advanced packaging systems
03/24/2017ULVAC, Inc. is pleased to announce the NA-1500 dry etching system for 600mm advanced packaging substrates, providing for u...