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NAND Flash Prices Will Continue to Decline as the Slight Oversupply Continues in 2Q18
April 12, 2018 | TrendForceEstimated reading time: 1 minute
The NAND Flash market has witnessed a slight oversupply in 1Q18. The growth momentum remains weak in 2Q18 although the demand increases, according to DRAMeXchange, a division of TrendForce. It is expected that the slight oversupply in NAND Flash market will remain and the prices will continue to decline.
In the 2H18, the overall demand will increase due to the peak season. Demand in channel markets will also recover because of the lower prices. The growths in average NAND Flash content per box for smartphones will also drive the steady bit shipment growth.
On the supply side, some manufacturers have slowed down their production expansion in response to the market trend in the first half of this year. Therefore, the next-generation 9x-layer NAND Flash process will not see sizeable shipment until 2019. The Yangtze Memory Technologies Company (YMTC), another focus of the industry, will also have limited impact on the supply in 2018 as well, since the new capacity of YMTC will not be sizeable until 2019.
In sum, the NAND Flash market will see slight oversupply in 1H18, but may change to tight supply in 2H18. The fluctuated prices of NAND Flash products will return to a stable level in 2H18 as suppliers, who own DRAM resources, adopt bundling sale strategy. The price drop of eMMC/UFS, PC/enterprise SSD and other products will be moderated then.
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