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NAND Flash Memory Prices Drop

Demand for NAND will continue to rise as the nonvolatile memory is used in more electronics equipment.
Contract prices for NAND flash memory declined 2 to 10 percent in the first half of May. Buyers can expect prices to continue to fall because of weaker seasonal demand, according to researcher DRAMeXchange.

NAND demand is expected to be sluggish through May and into June resulting in increased downward price pressure. Many flash memory buyers increased inventories of NAND following the earthquake in Japan and will be placing few immediate large orders.

The good news for buyers is that NAND supply will remain ample throughout the quarter. NAND flash makers have migrated to 2x nm process geometries which will boost NAND bit supply. In addition, the supply of raw materials used in producing NAND flash was not affected by the Japan earthquake, according to DRAMeXchange.

As a result, NAND flash memory will likely be oversupplied for the rest of May and into June, and buyers can expect NAND flash manufacturers to drop prices to lower inventory levels in June, DRAMeXchange reported.

Lower NAND prices will encourage smart phone, tablet computer, and other systems makers to equip their new products that will be released late in the third quarter with a greater amount of NAND.

NAND is used for data storage in a wide variety of electronics equipment. The global NAND market is expected to grow from $18.7 billion in 2010 to $22 billion in 2011. By 2014, the worldwide NAND flash memory market will surpass $24 billion, according to researcher iSuppli.