Micron Technology has raised its prices for NAND flash memory amid short supply from SanDisk, according to industry sources.

Micron ships NAND flash chips mainly to Intel and Seagate based on long-term, fixed-price contracts, said the sources. While having the majority of its production capacity reserved for orders placed by the two biggest clients, Micron has told its other clients that prices for NAND flash chips have been adjusted upward on tight capacity, the sources noted.

Meanwhile, SanDisk is having yield issues with its 15nm manufacturing process which has caused a reduction in its overall NAND flash memory supply, the sources indicated. The short supply from SanDisk might result in chip shortages in the third quarter of 2015, when the market enters a peak demand season, the sources said.

The global NAND flash industry was previously expected to stay oversupplied, but the supply/demand balance is likely to be restored to the industry due to SanDisk's ongoing supply constraints, the sources pointed out.