Pachinko upgrades to boost NAND flash demand

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Upgrades in Japanese-made pachinko game machines are set to play a driver of NAND flash demand growth in 2020, according to industry sources.

New-generation pachinko machines are expected to feature NAND flash memory, replacing old ones equipped with NOR flash chips that increasingly come with higher manufacturing costs, said the sources. The transition to NAND-equipped pachinko machines will take place in Japan, with the market generating about JPY20 trillion (US$185.73 billion) in output value annually, the sources indicated.

NOR flash prices have been rising due mainly to fewer suppliers as a result of major firms such as Micron Technology and Cypress withdrawing from the market segment, the sources continued.

New-generation pachinko machines will also feature higher 16GB or 32GB of onboard memory instead of 8GB, as NAND flash provides lower costs than NOR, the sources noted.

NAND flash chipmakers engaged in the supply chain of pachinko machines are gearing up for demand from the Japan market driven by the hardware upgrades, the sources indicated. Meanwhile, old-generation pachinko machines will be shipped to mainly Southeast Asia, the sources said.

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