Phison Electronics has enjoyed a pull-in of short lead-time orders for NAND flash products, and is optimistic that demand will continue to improve later in the second quarter, according to the supplier of memory device controllers.

The recent correction in NAND flash prices will help stimulate end-market demand, said Phison. Meanwhile, the company expects to see its customers start replenishing their inventory levels after mid-May as the peak season approaches.

Phison believes that the drop in NAND flash prices is about to come to an end.

Phison's revenues should have hit their bottom for 2018 in the first quarter, the company indicated. Phison's March revenues surged 28.2% sequentially to a four-month high of NT$3.5 billion (US$119.1 million).

Phison also disclosed chip partner Toshiba has seen clear order visibility through the end of the third quarter, which encouraged the memory device controller firm to give a positive outlook for the overall NAND flash market demand in the second quarter.

Market watchers expect Phison to post revenue growth of 10% sequentially in the second quarter, and another on-year revenue increase in 2018.

In addition, Phison is being sued in Taiwan by Macronix International over alleged patent infringement. The company has built its patent portfolio for nearly 18 years, said Phison chairman Khein Seng Pua, adding that it will definitely counter Macronix' accusation.