Flash memory revenue to reach $16.6 bln in 2004

The mobile phone market for flash memory is becoming more competitive with the intense fight among NOR-type flash makers now expanding to include NAND-type flash producers, according to iSuppli. NOR flash memory sales, including revenue from multichip packages (MCPs) will rise to $10.3 bln in 2004, up 39% from $7.4 bln in 2003.

Overall iSuppli predicts that flash-memory revenue, including sales of MCPs, will rise to $16.6 bln in 2004, up 46% from $11.64 bln in 2003. The prodigious year-over-year growth seen in 2003 and 2004 will not persist in 2005, but the market will continue to expand, with revenue rising to $17.5 bln, up 5% from 2004. Worldwide flash-memory revenue will rise at a Compound Annual Growth Rate (CAGR) of 14% from 2003 to 2008. The success of the NOR flash market is being driven by its largest application: mobile handsets. Revenue from mobile handsets accounted for 66% of NOR flash revenue and for 39% of total flash sales in the first half of 2004, iSuppli estimated. This represents a 52% increase for NOR flash and a 150% increase for NAND compared to the first half of 2003.