Flash Memory Cards & Readers

Fueled by the booming consumer electronics and mobile phone sectors, demand for flash memory cards and readers is expected to continue to grow dramatically.
This year, sales of flash memory cards and readers from mainland China alone are forecast to jump to US$468 million, up from US$246 million in 2004.

To help you benefit from such a booming supply-market environment, this new report provides a comprehensive overview of the industry and where it's headed.

Don't be left behind in such a fast-changing market. You'll find page after page of detailed supplier profiles, industry analysis, forecasts of upcoming trends and much more.

What you'll get

Deep profiles of 23 leading flash memory card and reader manufacturers, including details on production capacities, quality-control procedures, R&D plans, pricing strategies and more. This impartial information is the result of in-person factory tours and interviews with senior managers and is available nowhere else

Short profile tables on 20 additional mainland China and Taiwan suppliers, highlighting information such as product profiles, sales forecasts and export capabilities

A full-color product gallery featuring 165 top-selling export flash memory cards and readers, including key product features and technical specifications. Products are sorted by card format and reader type for easy comparison and reference

The results of Global Sources' most recent supplier survey, summarizing price, product, production and R&D forecasts for the next 12 months

How you'll benefit

Better understand the buyer profiles and export markets served by leading flash memory card and reader manufacturers

Be among the first to learn which applications are forecast to drive demand for flash memory cards in digital devices in the near future

Identify each manufacturer's technology partners and learn how their relationships impact product quality and your bottom line costs

Shortlist your next suppliers with quick-to-use summary listings of all featured producers, including comparable statistics and verified contact details

Executive summary

The increasing demand for consumer electronic products has paved the way for a dramatic boom in the demand for flash memory cards and readers.
In 2004, about 12 million flash memory cards, valued at US$216 million, and 5.5 million card readers worth about US$30 million, were produced in mainland China. Seventy percent of memory card output was shipped to overseas markets.

Shenzhen in Guangdong province is the major production hub for flash memory-based products including USB flash drives, MP3 players and memory cards. Taiwan, on the other hand, has become a key sourcing center for flash memory cards and readers due to its well-established semiconductor industry.

The flash memory industry has become dependent on trends in the flash digital still camera, camcorder, portable media player, mobile phone, PDA and handheld PC industries.

Semiconductor-industry analyst Future Horizons reported that digital still cameras accounted for 44.3 percent of the flash memory card market in 2004. Future Horizons likewise expects mobile phones to take over digital still cameras' share of the flash memory market in 2005.

Demand for flash memory cards and readers is expected to dramatically shoot up once mobile-phone makers release the latest models that support removable flash memory cards.

This report covers 43 flash memory card and reader manufacturers in mainland China and Taiwan. Global Sources market analysts visited the factories of 23 of these companies.

Findings of this report include:

Export capability
In 2004, the total export volume of flash memory cards from mainland China was 8.4 million units, valued at US$151.2 million. Card reader exports were pegged at 3.5 million units, with a value of US$21 million.

Seventy percent of the makers' output was exported to overseas markets. Western Europe was the biggest export market, followed by North America. Africa is a new export destination eyed by both mainland and Taiwan makers

Interviewed mainland makers export 64 percent of their products to OEM buyers. On the other hand, 45 percent of Taiwan makers surveyed are in the OEM business.

Manufacturing capability
Total production volume of mainland makers in 2004 was 12 million units for flash memory cards valued at US$216 million, and 5.5 million units for card readers worth US$30 million.

Mainland makers use controller ICs from Taiwan suppliers, such as ALI, Genesis, ICSI, Sunplus and OTI.

Product trends
Mobile phones have overtaken digital cameras as the main product application for flash memory cards and will spur a trend toward smaller, lighter form factors.

Industry overview

This report covers manufacturers of removable flash memory cards such as CompactFlash (CF), SecureDigital (SD) and MultiMediaCard (MMC) in mainland China and Taiwan. It also covers manufacturers of standalone and multifunction memory card readers, both internal and external units.
Semiconductor flash memory products have become a staple in consumer electronics since their introduction in the mid-1990s. Flash memory is now applied into almost every portable digital device, whether embedded or as removable storage.

Preferred for its nonvolatility, high density and suitability in portable and rugged applications, flash memory is widely available in a variety of storage capacities, shapes, interfaces, price points and performance levels.

The flash memory card and reader manufacturing industry in mainland China and Taiwan began in 2000. Its emergence followed the rise of digital still cameras. The first makers were already producing other computer peripherals before venturing into mass production of flash memory cards and readers.

In 2003 and H1 2004, unstable supply and high flash memory costs forced many makers to temporarily stop production. Others dropped the line altogether.

In H2 2004, the flash memory situation turned around. Flash memory makers — major suppliers and new entrants — ramped up their production. Makers of flash memory cards have accordingly begun to expand their monthly output. New makers have also joined the line.

In 2005, the supplier base comprises 20 flash memory card and 30 card reader makers in mainland China, and 20 flash memory card and 50 card reader makers in Taiwan.

On the mainland, 90 percent of makers are concentrated in Guangdong province, especially in the cities of Shenzhen and Guangzhou. Some makers can be found in Kunshan, Jiangsu province. About 70 percent of makers' output is exported, mainly to Western Europe and North America.

Samples of supplier profile

A-Data Technology Co. Ltd
A-Data Technology Co. Ltd is a privately owned company listed on Taiwan's GreTai Securities Market. It was set up in May 2001 as a 3C applications provider with three major product lines: DRAM modules, flash peripherals and TFT-LCD monitors.

From an original capital of about US$1.5 million, A-Data's accumulated capital as of October 2003 had risen to US$14.5 million thanks to its healthy sales performance. From US$423.3 million in 2003, annual sales of all products almost doubled to US$821.5 million in 2004. In 2004, A-Data announced that it achieved a three-year revenue growth of 998 percent, making it the fifth fastest-growing technology company in Taiwan and the 27th in Asia Pacific on the 2004 Deloitte Technology Fast 500, a ranking of the 500 fastest-growing tech firms in the region.

The company set up its flash business unit in July 2002 and first produced memory cards in 2004. Today its line of flash memory card products include CF, SD, MMC, Mini SD, RS-MMC, 60x Mini SD, 60X SD, Turbo MMC, MMC Plus and MMC Mobile cards.

Half of its output goes to OEM buyers, while the other half is allotted for own-brand sales. To help promote its products, the company has set up overseas sales offices in the Hong Kong SAR, Santa Clara, California in the US and Shanghai in mainland China. Major trade shows it has participated in include CeBIT and Computex.

A-Data considers its close relationship with the world's largest memory-chip makers as one of its strengths, as it allows the company to meet its delivery schedules even when there is a memory-chip shortage across the industry.

Manufacturing capability
A-Data operates two factories — one in Taipei, Taiwan and the other in Suzhou, mainland China — with a total production area of 10,209sqm. The ISO 9001- and ISO 14000-certified factories are manned by a total of 280 workers.

Combined monthly capacity is 500,000 units of flash memory products, which can be expanded by subcontracting, depending on order volumes.

Because its two facilities were already running at full capacity last year, A-Data is planning to triple its output this year to 1.5 million units per month.

Mold-making, plastic injection and silkscreen/offset printing are subcontracted while sub-assembly and final assembly are partly outsourced and partly done in-house. QA and QC, on the other hand, are performed fully in-house.

There are 20 SMT production lines in all, 10 in Taiwan and 10 at the Suzhou plant.

QC and R&D
The company sets aside .12 percent of annual sales for R&D. It employs 12 R&D engineers responsible for the design and development of both its D-RAM and flash memory products. Its QC/QA team for flash memory production consists of 30 technicians. Up to two QA personnel are assigned to every stage of the manufacturing process to check on quality and product performance. A-Data's products carry CE and FCC quality approvals.

Products and prices
Among its popular export models are its CF, SD, MMC and Mini SD cards sold under its in-house brand, My Flash.

Sample of product gallery

CF cards Company name: A-Data Storage capacity: 64MB, 128MB, 256MB, 512MB, 1GB, 2GB, 4GB Data transfer rate: 6MBps Dimensions (mm): 42.8 x 36.4 x 3.3 Key features: Compatible with PC Card ATA, supports 8-bit or 16-bit host data transfers, PIO mode 4 Delivery time: 7 days

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