Samsung Electronics and Hynix Semiconductor reportedly have released 2012 orders for embedded MMC (eMMC) controller ICs to major Taiwan-based suppliers of NAND flash device controllers.

Industry sources speculate that Faraday Technology and Silicon Motion Technology have both secured eMMC-chip orders from Samsung for 2012, while Hynix has contracted Phison Electronics to manufacture its eMMC controllers and is also looking at new suppliers in Taiwan.

Faraday, which partners with United Microelectronics Corporation (UMC), began shipping eMMC controllers to Samsung in the fourth quarter of 2011, according to the sources. The IC design service provider uses UMC's 65nm process technology to make the chips, and is expected to see its monthly shipments to Samsung exceed five million units in the first quarter of 2012, the sources indicated.

Silicon Motion has also grabbed orders for a different eMMC-chip design from Samsung, the sources observed. Silicon Motion has responded saying it does not comment on individual clients.

Hynix, which used to have a close tie with Anobit, reportedly is looking to strengthen its relationship with another existing partner Phison after media reports claimed that the Israel-based flash controller firm had been quietly acquired by Apple. Hynix is also seeking cooperation with other Taiwan-based controller suppliers, the sources pointed out.

In addition, the sources expect Toshiba to continue in-house producing controllers for its eMMC solutions. But over the long term, the Japan-based vendor is likely to outsource the manufacture for cost reasons, the sources said.

The market for embedded NAND devices used in smartphones and tablets is expected to expand in 2012 and beyond. In addition to NAND-chip vendors, dedicated module makers Kingston Technology and Adata Technology have also made inroads into the sector targeting mainly orders from China's white-box system companies as well as brand vendors which tend to diversify their sources.