NAND, NOR flash headed in opposite directions

SAN FRANCISCO — Sales of NAND flash memory grew 64 percent to reach $10.6 billion in 2005, while the market for NOR flash declined 13 percent to finish the year at $8 billion, according to a report released Tuesday (March 28) by market analyst firm IC Insights.

Overall, flash memory sales grew 19 percent to reach $18.6 billion in 2005, according the March update of the firm's McLean Report.

Despite the revenue decline, unit shipments of NOR flash increased 9 percent to reach 4.1 billion in 2005, while shipments of NAND devices increased 88 percent to reach 1.2 billion, according to the report.

Samsung remained the leader in flash memory sales in 2005, according to the McClean Report's list of the top 10 flash memory suppliers for the year. Samsung's flash sales (including internal transfers) grew 47 percent on the year, reach nearly $6.6 billion — 35 percent of the overall market. An agreement with Apple to supply flash memory for the iPod nano accelerated Samsung’s second half sales and unit output, IC Insights (Scottsdale, Ariz.) said.

Toshiba retained the No. 2 position with flash sales that increased 13 percent to $2.5 billion, according to the report. Toshiba’s flash marketshare was 13 percent in 2005, down one point from 2004, the report said.

Hynix Semiconductor enjoyed one of the fastest flash sales growth rates in 2005, with sales that jumped nearly six fold to reach $1.26 billion, according to the report.

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The McClean Report is available from IC Insights for $2,190.