Flash-memory makers should see some relief from declines in the average selling prices of chips, analysts said.
The relief could come after 1999, when unit shipments begin to accelerate and higher-density devices start commanding more money, according to Walt Lahti, manager of the Semiconductor Memory Group at In-Stat in Scottsdale, Ariz.
In a new market report, In-Stat predicts flash-memory revenues will increase at an annual growth rate of slightly more than 20 percent during the next five years. The aggregate average selling prices on flash memories will also rebound to $3.78 in 2002 compared to $3.50 in 1998, Lahti said.
The rebound of flash prices will partly come from improvements in the dynamic RAM business, which should move some of the excess capacity out of the nonvolatile-memory segment back into
DRAMs, Lahti said. The growth of higher-density flash will also push up aggregate average selling prices, he added.