Demand for NAND flash chips has rebounded recently, with contract quotes expected to stay stable through the end of October, according to sources at downstream device manufacturers.

　　Orders for NAND flash devices have ramped up signficantly since September, said the sources, adding that the demand pick-up is expected to stabilize chip prices.

　　Following a 5-10% drop in the second half of August, NAND flash contract prices are set to bounce back in September and stabilize through the end of October, the sources believe.

　　In addition, the recent fire at SK Hynix' China plant has had no impact on the global supply of NAND flash memory, as the affected production capacity is mainly for PC DRAM chips, the sources commented. However, the sources expressed concerns that SK Hynix as well as other chipmakers might allocate some of their NAND flash capacity for the manufacture of DRAM chips to offset supply disruptions caused by SK Hynix' production shortfalls.

　　Nonetheless, a possible reduced supply of NAND flash chips could help mitigate the impact of a traditionally slow season for the consumer electronics market in November, the sources suggested. NAND flash contract prices usually turn soft in line with slow seasonal demand later in the fourth quarter.