Early March contract prices for NAND flash memory saw a slight decreases to flat growth, mainly due to sluggish demand for memory cards and USB drives. However, with storage devices transitioning to faster USB 3.0 interface, NAND flash demand is expected to rise later in 2012, according to industry sources.

NAND flash demand for memory cards and drives is being caused by still-excessive inventory in the supply chain, the sources indicated, adding that new demand might not be created until the peripheral devices transition to USB 3.0.

Despite slow demand for flash drives and cards, NAND flash demand for SSDs and embedded storage devices remains strong and will expand further on roll-outs of new ultrabooks and tablet PCs, the sources indicated.

There were a number of new smartphones and tablets unveiled during the recently ended Mobile World Congress (MWC) in Barcelona, Spain, with launch slated for between March and April. The upcoming consumer technology products and availability of Intel's Ivy Bridge chips are set to help the penetration rate of USB 3.0 chips rise significantly along with increasing adoption of embedded storage and SSD devices, the sources noted.

Judging from the trends, NAND flash contract prices are unlikely to trend upward until the second half of 2012, the sources said.