Kim Jong-kap, front row, left, CEO of Hynix Semiconductor, poses with Brian L. Harrison, front row, right, CEO of Numonyx BV and other company officials after Hynix, Numonyx and Taiwan’s Phison agreed to jointly develop controller ICs for NAND chips, Friday. / Courtesy of Hynix Semiconductor |
By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor will turn its focus to NAND flash chips following the company's decision to boost its ties with key overseas partners.
Hynix is conducting a joint development of controller ICs for the next-generation of managed-NAND memory chips, which is expected to strengthen its hand in the NAND flash chip business.
Under the agreement, Hynix, Numonyx BV and Phison Electronics will team up to develop JEDEC- and eMMC 4.4-based controllers used in combination with a variety of NAND flash products.
The Taipei-based Phison would be the exclusive supplier of the controllers to Hynix and Numonyx, according to Hynix spokeswoman Lee Si-hyun, Friday.
Products combining the controllers from Phison with NAND flash memory from Numonyx and Hynix will be on the market this year.
Hynix is the world's No. 3 producer of NAND flash chips, while Numonyx is the flash-memory venture created by STMicroelectronics and Intel Corp. Phison has technology edges in controller ICs.
Controller ICs are the key components for NAND-embedded consumer electronics devices such as MP3 players, digital cameras and high-end mobile phones. Their role is managing the smooth operation of NAND flash chips, while improving the stability of the overall system of NAND flash products, according to experts.
e-MMC 4.4-based controllers feature enhancements, including a doubling of the memory interface performance, flexible partition management and improved security options, according to Lee.
"Among global chip companies, improving controller IC-related technologies has emerged as the top concern for the leaders in the rapidly growing NAND chip market," the spokeswoman added.
The agreement has come amid rising prices of NAND flash memory chips coupled with massive cutbacks in outputs by chip suppliers and a possible launch of Apple's 32-gigabyte iPhone, raising hopes that leading memory chip makers can turn a profit later this year.
According to Hynix, NAND flash accounted for 24 percent of its total sales in the first quarter of this year, while that of DRAM accounted for 76 percent ― the same portion as in the fourth quarter of last year.
Although the outlook on whether there will be a sustainable recovery in demand for consumer electronics products that use NAND and DRAM memory chips is still mixed, Hynix is planning to boost the NAND chip output in its M11 manufacturing line.
"A rapid growth in smart phones and the introduction of new NAND-related products by our clients will possibly force us to transfer a part of M10 line into NAND chips," Kwon Oh-chul, chief of Hynix' external relations team said.
"In the second quarter, we expect to see an increase of NAND flash chip sales from the previous quarter. Now, we are reviewing many options to determine the best way to maximize profits," Kwon said.
On the spot market, the mainstream 16-gigabit NAND chip was $4.55 each on average, nearly double from the start of the year, according to Taiwan-based DRAMeXchange.
Contract-based prices ― those that are negotiated between chip producers and their customers ― rose 8 percent in late April from early April and DRAMeXchange forecasts prices could increase by another 5- to 10-percent in early May.
yckim@koreatimes.co.kr
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