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Samsung, Toshiba mull plan to foil NAND flash price drop

Posted: 10 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Samsung Electronics? Toshiba?

According to Digitimes, Samsung Electronics and Toshiba are planning to postpone their scheduled 12in fab expansion at their 12in fabs in order to stop NAND chip prices from falling further.

Samsung's and Toshiba's technology transitions to 21nm and 19nm, respectively, have already boosted their output of NAND flash memory, industry sources said. However, demand growth is still lagging the pace of supply expansion leading to an oversupply and price drops, the sources observed.

NAND flash demand for ultrabooks and SSDs has been a disappointment thus far this year. Poor demand is causing chip prices to continue their downward trend, the sources said.

Prices for NAND flash chips moved to become stable in June, but end-market demand actually remains sluggish, the sources pointed out. The price stabilizing was as a result of Samsung's intentionally reduction in its supply to China-based channel distributors, the sources added.

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