Among the questions still swirling around Apple Inc.'s new iPad is whether the tablet computing device will boost the memory-chip market this year as much as many in the industry hope.

If the iPad creates the buzz that the iPhone and iPod did several years ago, leading rival companies to launch similar products to compete, that could be a positive catalyst for the flash-memory chip market, which has been suffering from a steep downturn in consumer spending since the global financial crisis began in late 2008.

Semiconductor makers from Samsung Electronics Co. to Toshiba Corp. and Micron Technology Inc.- all suppliers to Apple - are optimistic about growth prospects this year.

For one, demand for memory chips is improving with the launch of new smart phones, tablet personal computers and electronic readers. Supply remains tight for the moment as the manufacturers have cut back on spending during the downturn.

NAND flash memory, the type of chips these companies make, is used to store data in electronic devices even when power is switched off, making them ideal for music players, digital cameras and smart phones.

Chip makers' path to recovery has been evident in the latest earnings reports and market watchers say the outlook is bright. Research firm iSuppli forecasts smart-phone shipments this year will rise 32% to 239 million units from 181 million in 2009.

Samsung, the world's biggest maker of NAND flash memory chips by revenue, said it expects demand for mobile phones and other major applications to show a recovery this year after reporting that it swung to a fourth-quarter net profit of 3.05 trillion won ($2.6 billion).

"The overall supply/demand conditions should remain tight due to limited increase in supply, impacted by the cutback in capital expenditure from the previous two years," Robert Yi, vice president of Samsung's investor relations team, said on a conference call.

Toshiba, the world's second-biggest NAND chip producer, said last month its net loss for the three months ended Dec. 31 narrowed to 10.63 billion yen ($118.9 million) from 121.14 billion yen a year earlier, largely on the back of a recovery in its semiconductor business, which saw a profit of 4.7 billion yen.

"We don't expect any sharp decline in prices," Senior Executive Vice President Fumio Muraoka said at a news conference following the earnings.

Research firm Arete expects global NAND chip revenue to increase by 37% this year to $19.5 billion from $14.2 billion in 2009. NAND prices, meanwhile, are expected to decline by around 24%, compared with a 15% drop in 2009, according to the firm. "This is a very healthy market considering NAND prices had declined by around 60% annually prior to 2009," said Nam Hyung Kim, director of equity research at Arete.

Samsung says it expects its average selling prices for NAND flash to decline by a low-teens percentage in the traditionally slow first quarter, after an increase in the mid-single-digit percentage range in the fourth quarter. For the full year, it expects its average selling prices to decrease in the high 20% range.

The average spot price of the mainstream 16-gigbit NAND flash memory chip fetched $4.34 each early Monday, down from its mid-October peak of $5.99, but still up 25% from $3.47 a year earlier, according to online chip clearinghouse DRAMeXchange.

Mr. Kim said if Apple sells around five million 64-gigabyte iPads this year, that will represent about 3% of total NAND shipment this year. "It isn't a major increase in demand. However, similar 'me-too' products from other companies will boost NAND demand."

Officials at the chip makers declined to comment about the iPad's impact on the chip market.

But in a sign of confidence in market growth prospects, Intel Corp. and Micron unveiled a smaller, more dense flash memory product this month that could lead to more storage capacity on smart phones, media players and other electronics.

The flash memory - the first to use the more advanced 25-nanometer process technology - can hold eight gigabytes in a single NAND device that can fit through the hole in the middle of a compact disc. The new technology can cut manufacturing costs for chip makers.

Idaho-based Micron says it expects a healthy market this year with demand in balance with or slightly exceeding supply. The company plans to boost its capital spending in its fiscal year ending August to $750 million to $850 million from $630 million a year earlier.

Risks still remain for the manufacturers: The NAND chip market is heavily dependent on demand for consumer electronics so any decline in global economic conditions could damp sales. Supply could slowly increase again as companies earn more and raise capital expenditure to ramp up production after migrating to more advanced technologies.

"Samsung will aggressively expand its memory-chip market share and increase the technology gap with its competitors with massive memory-chip investment," said Mr. Kim.

Samsung hasn't yet unveiled its total capital-spending budget for this year, but said it is planning more than 5.5 trillion won for its chip business.

Hynix, the world's third-largest NAND flash producer, expects its capital spending to more than double this year to 2.3 trillion won from 1 trillion won in 2009.