Memory module firm Kingston Technology reportedly plans to cut prices for all of its NAND flash products, including USB drives, memory cards and SSDs, by as much as 15%, according to industry sources.
In response, Kingston indicated that its planned price adjustments are to coordinate chip suppliers' shift to more advanced process technologies for production growth. Kingston added that in 2012, the company aims to enhance its presence in the NAND flash market segment.
Kingston did not confirm the rates for its upcoming price reduction.
Major NAND flash chipmakers are transitioning to their newer 2Xnm and 19nm processes, which will result in ramp-ups of their capacity as more advanced processes allow for more chips produced on a single wafer. However, end-market demand thus far in 2012 has been disappointing, raising oversupply concerns, the sources indicated.
Kingston's move to adjust its prices is expected to encourage fellow NAND flash device vendors and module makers to follow suit, the sources believe.