The NAND Flash market is expected to reach $26.6 billion in 2015, increasing nine percent, according to DRAMeXchange, a subsidiary of market intelligence firm TrendForce. The report finds increasing demand for tablets and smartphones along with the Internet of Things (IoT) further implementing NAND Flash are the key growth drivers next year.
“NAND Flash bit-growth rate will reach 36 percent in 2014 followed by 35 percent growth in 2015 as more diversified products implement the technology,” said Sean Yang, DRAMeXchange assistant vice president, in a statement.
As tablet and smartphone shipments start to slow down as the market matures, SSD applications will help drive demand, Yang noted. “The penetration rate for current-level SSD in higher performance and efficiency commercial notebooks and high-end consumer units is higher, and is expected to further expand into mid-range mainstream products and entry-level product lines. Enterprise solid-state hard disk applications meanwhile will grow in accordance with the high growth rate of cloud computing.”
Yang also expects Apple’s soon-to-be-released iWatch with NAND Flash to drive other vendors to use the technology. Currently, Samsung and SK Hynix Semiconductor are developing eMCP and processor packaging POP methods for wearable device vendors to test. NAND Flash manufacturers are also working with a variety of vendors in the IoT ecosystem. “Aside from performance and pricing advantages, capacity will also give vendors diverse storage content access, which means that NAND Flash will become the top storage device choice for smart devices,” Yang added.
While Samsung is expected to expand production of 3D-NAND Flash at its Xian facilities in China during the second half of 2014, other manufacturers are likely to focus on enhancing production facilities. DRAMeXchange expects 12-inch wafer production to increase 7.3 percent, while output increases 35.7 percent in 2014. In 2015, 12-inch wafer production is projected to increase by 7.6 percent while output increases 35.8 percent.