Early May 2011 contract prices for NAND flash memory slipped further with 16Gb chips having the largest drop of 6-8%, according to industry sources. Spot prices have also turned soft in line with seasonal slow demand with mainstream 32Gb parts falling below US$4.
Sluggish demand for removable flash cards and USB drives continued to put a drag on NAND flash prices in the first half of May, the sources said. Meanwhile, demand for smartphones and tablet PCs was not as strong as expected, the sources indicated.
In addition, supply for 2Xnm-made NAND chips is slightly tight as gaining customer validation is not easy due to strict requirements, the sources pointed out.
NAND flash contract prices rallied previously amid speculation that supply would shrink on disrupted deliveries of raw materials from Japan. Prices, however, began to see contraction in the second half of April as demand growth appeared slow as the industry enters its slow season.
contract prices for 32Gb and 16Gb MLC (multi-level cell) NAND chips rose about 3-4% and 6-8% to average US$5.76 and US$3.52, respectively, in the first half of May, while those for lower-density 8Gb parts stayed flat at US$3.46.