NAND flash contract prices will continue their downward trend in the second half of 2018 as demand is unable to catch up with supply, according to DRAMeXchange.
Chip suppliers continue to scale up their output thanks to further improvement in their 64- and 72-layer 3D NAND flash technologies. Nevertheless, demand is likely to be weaker-than-expected in the third quarter despite the period being the traditionally peak season, DRAMeXchange indicated.
NAND flash contract prices already fell for the second consecutive quarter in the second quarter of 2018, DRAMeXchange said. Prices are set to decline further in the third quarter due to disappointing demand for smartphones, notebooks and tablets, DRAMeXchange noted.
Chip suppliers may cut further their quotes in order to stimulate demand, which will lead to a steeper-than-expected decline in NAND flash contract prices for the third quarter, DRAMeXchange continued.
Suppliers will see their 3D NAND flash production yield rates exceed 80% in the fourth quarter, while staying cautious about building additional new production capacities. Nevertheless, demand will still fail to catch up with supply resulting in a continued slide in the memory contract prices for the fourth quarter, DRAMeXchange said.
NAND flash contract prices for the fourth quarter will still very much depend on sales of the upcoming iPhones, DRAMeXchange suggested.
Article translated by Jessie Shen
