The rise of embedded memory solution presents an opportunity for memory chipmakers. However, module house Kingston Technology is also making inroads into the market, according to company co-founder John Tu.
Kingston earlier disclosed plans to form a joint venture with memory controller IC supplier Phison Electronics for embedded NAND devices compliant with the eMMC standard, becoming the first third-party module maker to enter the embedded memory territory dominated by major NAND flash chip firms.
Kingston's eMMC focus is placed on popular smartphones and other portable electronics devices, with an emphasis on building a customer portfolio in China, Tu said. Kingston regards demand for white-box handsets in China as an opportunity to develop its embedded memory business, as fellow embedded memory solution providers - usually NAND chip vendors - pay more attention to vying for orders from brand handset customers, Tu indicated.
Kingston is also eyeing to be brand-name handset firms' preferred backup suppliers of embedded memory when Samsung Electronics and other chip companies experience tight capacity, according to Tu. He admitted that it is uneasy for Kingston to break into the supply chain of brand handset companies as major NAND suppliers usually reach contract agreements with the vendors prior to actual shipments as a way to ensure smooth deliveries.
But Tu believes in general, companies wish to diversify their upstream suppliers to lower procurement risk. Kingston continues to work on building close relationships with brand-name system vendors with a flexible operation strategy, Tu said. Tu did not specify any names.
Kingston reportedly has joined Samsung Electronics and SanDisk as a supplier of embedded memory solutions for HTC, previous reports cited industry sources as indicating.