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Manufacturing/Packaging??

SSD orders failed to up NAND flash market

Posted: 07 Dec 2011 ?? ?Print Version ?Bookmark and Share

Keywords:NAND flash market? SSD? HDD supply?

According to DRAMeXchange, a research unit of TrendForce Corp., rush orders for SSD's were not sufficient to revive the NAND flash market. Subsequently, the contract price of NAND flash in 2H'Nov plunged by 4-6 percent compared to the same month last year.

The orders for SSDs came in November due to the flood in Thailand that affected HDD supply. However, shipment of end-market products such as PCs, smartphones and tablets continued to drop. Memory card sales have also plummeted, on top of the weak demand resulting from worrisome economic outlooks in Europe and the U.S.

NAND flash

Moreover, major brand names such as HP, Acer, Asus, Toshiba and Lenovo have launched their ultrabooks in October and November. As for the new ultrabooks, with the exception of Acer's S3 equipped with both HDD and SSD solutions, others used SSDs with capacities ranging between 64GB and 128GB. However, the high cost of ultrabooks' components and the wide price gap between ultrabooks and the mainstream notebooks resulted in their underperformance in the market. This caused the SSD's shipment in 4Q11 to fall short of expectations, TrendForce noted. In order to widen the price gap between ultrabooks and MacBook Air, the ultrabooks to be launched in 1H12 will adopt both HDDs and SSDs, a compromise between performance and cost, added the company.

NAND flash

Looking at the market afterward, considering the market's conservative attitude toward the demand spurred by Christmas, the manufacturers have been withholding from stocking up. In addition, China's economic recession and the uncertain global economic outlook will hurt the peak season of the Chinese New Year that also contributes to the conservative attitude of the manufacturers. In the meantime, the production of NAND flash makers' 2ynm/1xnm process will increase considerably after December, which will bring a new challenge to the weak market demand. TrendForce remains conservative about NAND flash prices and expects the downtrend to persist in the short term.





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