Tuesday, July 17, 2012

NAND flash contract prices stabilize


Josephine Lien,Jessie Shen, 17 July 2012

Contract prices for NAND flash memory have stopped falling to reflect a healthier supply-demand balance. The price stabilizing is as a result of major producers' slowdown in chip output, according to industry sources.

Upstream chipmakers started scaling down their production in June, and have also slowed down capacity expansion at their 12-inch fabs. The efforts have resulted in holding prices and preventing further falls, the sources observed.
Some of the chip suppliers moved to allocate more production capacity for DRAM memory, the sources said. Prices for DRAM chips thus far in 2012 have been relatively stable than those for NAND flash, the sources added.

NAND flash prices still depend very much on demand, the sources indicated. Upcoming rollouts of new smartphones, tablets and ultrabook PCs should trigger a fresh round of inventory replenishment around late August, which will determine whether chip prices continue to keep stable or even go up, the sources said.
New figures from DRAMeXchange show that early July contract prices for 32Gb and 64Gb rose slightly while those for 16Gb parts remained flat. Prices for 32Gb 3-bit per cell NAND also stayed unchanged at NT$2.09 on average in the period.

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