NAND Flash Average Contract Price Continues to Decline

[Apoptosis]

TrendForce：2HNov Mainstream NAND Flash Average Contract Price Continues to Decline by 1-3%, Mild Downtrend to Continue to 1Q13

December 6, 2012---According to DRAMeXchange, a research division of TrendForce, although NAND Flash manufacturers continue to use supply-restraint strategies as a means to stabilize prices, with the year-end replenishment demand from NAND Flash OEMs and channel market clients gradually declining after 2HNov, most mainstream NAND Flash average contract prices have continued to dip at a rate of 1-3%. In addition, following the increase of the 20nm 64Gb MLC shipments from some vendors, the 2HNov 64Gb MLC chip average prices have experienced a decline of approximately 7%.

As most NAND Flash clients will decrease their inventory levels under the year-end settlement effects, replenishment demand for December has begun to experience a continuous decline. Taking into account the slightly increased proportion of wafer production and new 20nm-class products from some suppliers, along with the effects of the promotion strategies implemented by NAND Flash vendors, TrendForce predicts that for December, NAND Flash contract prices will continue on a downtrend.

Despite the fact that only a few new smartphone models are expected to be released in 1Q13, and that some suppliers are employing production-cut or suspending capacity expansion strategies, the overall atmosphere toward the NAND Flash market demand remains conservative. As such, TrendForce projects that for the first quarter of next year, the NAND Flash market will experience a mild oversupply. NAND Flash contract prices, at the same time, are expected to exhibit a mild downtrend.

About TRENDFORCE


TrendForce linkin
TRENDFORCE is a global leading research institution providing market intelligence, in-depth analysis reports and consultant services on technology sector. Our company consists of 4 major research divisions---DRAMeXchange, WitsView, LEDinside and EnergyTrend which cover the DRAM, NAND Flash, PC, display ,LED and Green energy research sectors respectively . www.trendforce.com



DRAMexchange linkin
In the year of 2000, the company started to deliver market intelligence services under the name of DRAMeXchange.
This includes the latest industrial scenario, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.www.DRAMeXchange.com