March 21, 2000 RELEASE
Flash Memory Market Skyrockets
Scottsdale, Arizona — March 21, 2000 — The fastest growing and arguably most closely watched IC product segment in the year 2000 will be flash memory. Following growth of 83 percent in 1999, IC Insights forecasts that the red-hot flash memory market will more than double in 2000 to $10 billion (Figure 1). Rapid growth in flash memory is closely tied to several emerging applications in the wireless communications (handsets, base stations, and support infrastructure) and consumer electronics (including digital cameras, set-top boxes, and MP3 players) end-use markets.
IC Insights forecasts the flash memory market will race past the SRAM market to be the second largest memory category in 2000, trailing only DRAMs. Additionally, the flash memory market is forecast to account for 21 percent of the total memory market in 2000, up from 14 percent in 1999.
Cellular phones, cellular phones. Everywhere there are cellular phones and their numbers are increasing. Not only are unit shipments of cellular phones exploding (forecast to be 430 million units in 2000), but the amount of flash memory per cell phone is roughly doubling each year. Cell phones built in 1998 had an average of 4Mb of flash memory. By 2002, the amount of flash memory per phone is forecast to increase to 64Mb. The market for flash memory, especially as it is applied in cell phones, set-top boxes, MP3, and digital cameras will keep the industry very active through 2002.
In summary, the flash memory market is forecast to grow faster in 2000 than any IC product has in over a decade. Strong electronic system demand, the need for high density devices, and limited wafer fab capacity are all components that will increase average selling prices and ultimately lead to triple-digit growth for the flash memory market in 2000.
About IC Insights
IC Insights, Inc., based in Scottsdale, Arizona, is dedicated to providing high-quality, cost-effective market research for the integrated circuit industry. Founded in October 1997, IC Insights offers coverage of global economic trends, the IC market forecast, capital spending and fab capacity trends, product market details, and technology trends, as well as complete IC company profiles and evaluations of emerging markets for ICs.