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NAND flash prices likely to stop falling in 2Q19
Source: DIGITIMES   Editor: Amanda   Update Time :2019/2/19 17:11:44

NAND flash prices are likely to stop falling and begin to rise as early as the second quarter of 2019, thanks to a pick-up in replenishment demand from device vendors, according to sources in industry.

NAND flash prices are unlikely to fall further given major chipmakers' control over capacity, said the sources, adding that the firms are also slowing down their transition to 96-layer 3D NAND chip technology. NAND flash prices should reach their lowest levels for 2019 in the first quarter.

NAND flash prices have been falling since 2018 as the market becomes oversupplied. Market observers estimated previously the chip prices would drop around 20% in the first quarter of 2019 and continue their downward trend through the second quarter.

On the demand side, distributors are mulling raising their module prices, industry sources indicated. In the contract market, NAND flash prices continue to fall but a pick-up in replenishment demand from system OEMs is expected to emerge in the second quarter, the sources said.

Demand has started picking up at a gradual pace, according to Khein-Seng Pua, chairman for Phison Electronics. The NAND device controller supplier saw its January revenues increase 13.4% sequentially to NT$3.36 billion (US$108.8 million).

 

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