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Samsung cuts NAND supply to deliver 50 million chips to Apple

Posted on Wednesday, July 02 2008 @ 22:35:48 CEST by

DigiTimes claims Samsung will reduce its supply of NAND flash memory chips as it has secured a large order from Apple for 50 million 8Gb-equivalent NAND chips for the iPhone.
The sources indicated that Samsung recently informed them it has secured orders for 50 million 8Gb-equivalent NAND flash chips mainly for use in Apple's iPhone. Amid the new orders, Samsung said it would sharply cut supply to other customers in July, they added.

In addition to the Apple orders, supply will also be reduced because of a capacity adjustment Samsung made in May. The chip maker allotted less capacity for NAND flash production during April and May in attempts to reduce oversupply, which should be reflected in actual output in July, the sources said.

Despite an apparent sharp drop in NAND flash, the sources said industry players are still doubtful about the impact from the Apple orders. They noted that Apple already landed a batch of 25 million 8Gb-equivalent NAND flash chips from Samsung in June and commented that ongoing procurement will depend largely on iPhone sales.



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