Packaging and testing houses see weaker NOR flash sales in 4Q

Memory packaging and testing houses ChipMOS Technologies and King Yuan Electronics Company (KYEC) have estimated that sales contributions from NOR flash will slide sequentially in the fourth quarter of 2008 due to weakening demand for such applications as handsets.

According to ChipMOS, the company will see NOR flash sales decline 10% sequentially in the fourth quarter, as orders from Spansion and Macronix International Company (MXIC) have dropped. However, the sales drop for the NOR segment will be less significant than that for the DRAM segment, whose sales will fall 30%, said the company.

KYEC stated that sales contribution from its NOR flash customers, including Spansion and Silicon Storage Technology (SST), has slid from 15% to 10%, reflecting general market weakness.

Despite the negative outlook for the fourth quarter, market watchers said that NOR flash backend suppliers including ChipMOS, KYEC and Powertech Technology Incorporated (PTI) still stand a good chance of securing more orders from Spansion, SST and MXIC in the coming quarters, as cost down will remain these clients top priority amid the current slowdown.