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NAND flash sees 'significant' price improvement

Posted: 23 Mar 2007     Print Version  Bookmark and Share

Keywords:NAND flash  multi-level cell NAND  NAND flash market  DRAMeXchange 

The NAND flash market seems to be getting out of the gutter with a growth in prices seen for a majority of multi-level cell (MLC) NAND flash, according to a report from Digitimes.

According to DRAMeXchange, except for 1Gbit parts, single-level cell NAND flash recorded significant price improvement since the last update. Chips that once saw sequential drops of over 10 per cent in the February now see smaller sequential price drops.

In addition, an upward price trend was seen in the MLC segment with mainstream 16Gbit and 8Gbit leading with a sequential gain of almost 12 per cent. The price of 4Gbit, the lowest density in the MLC segment, still experienced a sequential price fall of 5 per cent, an improvement though from a 25 per cent drop last time.

Prices for NAND chips have fallen rapidly through 2006 and early 2007. Analysts say the average selling price (ASP) for the parts could fall by 65 per cent this year.

Since late February, positive news regarding the NAND flash industry started spreading. Some industry players started seeing leading players, including Samsung Electronics and Hynix Semiconductor, stop reducing their quotes and hold firm in price negotiations, the report said.

Some are attributing the price rebound to the upcoming shipments of Apple's iPhone, saying that the launch in the United States around June should have a positive impact over the entire industry. Some analysts, however, predict the iPhone will affect the capacity of the entire NAND flash industry by just a single digit percentage, while most analysts believe that a shortage is more likely to be seen in 2H.




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