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Market conditions for NAND flash producers worsened in the first quarter of 2008 as continued oversupply and a historical low demand quarter was impacted by slowing consumer demand due to the U.S. sub-prime mortgage crisis, according to DRAMeXchange. NAND Flash ASPs fell approximately 35 percent in 1Q08 compared to 4Q07.  Overall bit shipment grew approximately 30 percent compared to 4Q07, according to DRAMeXchange.

Number one NAND flash market leader Samsung saw its share slip slightly in 1Q08 due to the steep ASP decline that was not offset enough by bit growth and cost savings from its ramp of 51nm process technology. Samsung exited the quarter with 39.6 percent of the market, down from 41 percent. Sales fell 18.7 percent q-on-q to $1.28 billion.

Continuing its aggressive 300mm fab ramps, Toshiba’s NAND flash market share rose to 26.4 percent compared to 22.3 percent in 4Q07. According to DRAMeXchange, Toshiba’s success in ramping its 56nm node production volumes offset the price declines with flat sales for 1Q08 of $855 million.

Due to the reduction in NAND production by Hynix Semiconductor, the Korea-based memory producer saw its market share fall to 17.5 percent in 1Q08, compared to 20.8 percent share in 4Q07. Sales fell by 29.1 percent q-on-q to $569 million.

Both Intel and Micron increased bit shipments q-on-q, but according to DRAMeXchange, both experienced sales declines due to a greater fall in ASPs. Micron and Intel 1Q08 sales were $248 million and $181 million respectively with a market share of 7.7 percent and 5.6 percent each, up slightly from 4Q07.  

Revenue for STMicro in 1Q08 fell slightly to $85 million; however, sales were buffered due to its mobile phone supply focus.  1Q08 market share was 2.6 percent, up slightly from 4Q07.

Renesas/PSC saw the biggest fall in sales (60 percent) due to Renesas’ reduction in production of AG-AND Flash in 1Q08. Their market share fell from 1.3 percent in 4Q07 to 0.6 percent in 1Q08.