Contract prices for 32Gb and 64Gb MLC (multi-level cell) NAND flash chips rose 2-3% in the first half of April, while those for lower-density 16Gb and 8Gb parts were up about 1%, according to market sources. Growth appeared slow when compared to mid- to high-single digit percentage increases in the previous month.
Chip prices for March were buoyed by speculation that supply would be disrupted by limited availabilities of silicon wafers and other production materials.
NAND flash contract prices were originally expected to trend downwards in the second quarter due to seasonality, the sources indicated. However, the outlook has become uncertain amid concerns about upstream constraints caused by the disasters in Japan.
Early April contract prices for 64Gb MLC chips reached US$7.70-7.90 while 32Gb parts were quoted at US$4.50-4.90, the sources said.
Downstream device manufacturers and distributors actually had piled up inventory before Japan supply chain issues emerged, some industry sources have pointed out. As the industry enters its slow season, several distributors have begun to release their chips to the spot market, the sources said.