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NAND flash prices stabilize, expected to wane in Q3 2012

Posted: 19 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:NAND flash? smartphone? tablet PC? ultrabook?

Last June, NAND flash suppliers have been strategically reducing the production ratio of TLC products for the UFD and memory card markets. System clients' current focus is on the inventory replenishment of new products set to hit the market in Q3 2012, therefore urging manufacturers to increase output ratio of MLC products. Such output ratio increase is an endeavor by companies to ease oversupply on the memory card and UFD markets, whose demand is currently weak.

Despite dwindling sales, suppliers are hesitant to offer promotional rates because profitability has been decreasing for half a year to date. Similarly, suppliers foresee a boost in the demand for smartphones, tablet PCs and ultrabooks in Q3 2012. Several factors are also expected to influence the NAND flash market. Global economic recovery is forecast to be slow in the latter two quarters of the year, consequently slowing down the purchase of electronics in Europe and North America.

Also, the restocking demand for NAND flash inventory may not increase until late August to early November due to target release dates for various smartphone, tablet PC and ultrabook models. Some manufacturers even plan to slow down production.

The delay in the roll out of 20nm class process technology used in the production of NAND flash devices could also interfere with the supply growth. However, as the technology is improved and higher-capacity eMMC, mSATA and SSD products are adopted, NAND flash content per unit will increase.

MLC NAND flash contract price

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