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Memory/Storage  

Supply concerns cause NAND flash price jump

Posted: 17 Mar 2011     Print Version  Bookmark and Share

Keywords:NAND flash spot price  Japan fab shutdowns  DRAM spot price  memory chip supplies 

Dramexchange service provided by TrendForce Corp. reported that spot prices for NAND flash memories jumped on Monday between 10 and 20 per cent following worries over limited supplies after the powerful earthquake that shook northeast Japan last Friday.

Toshiba, the leading maker of NAND flash memory, announced on March 14 that it would close down manufacturing and business sites in response to a request from the Tokyo Electricity and Power Co. However, as Toshiba's Yokkaichi fabs are a considerable distance south of Tokyo and even further from the parts of the country worst-affected by the earthquake, it is not clear whether these plants will be affected by shutdowns.

In the DRAM spot market most suppliers stopped offering chips due to the uncertainty over the impact of the Japan earthquake. As a result the overall price rose more than 5 per cent from early day trading.

While supplies could be constrained, particularly as some fabs may be subject to loss of electricity, so could demand at Japanese CE companies that use memory chips. As such the dynamic effect on supply and demand is not yet clear, although with so much equipment manufacturing now in China, the overall effect is expected to see supply fall behind demand.

- Peter Clarke
  EE Times





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