Contract quotes for 16Gb multi-level cell (MLC) NAND flash chips have edged down over 3% in the first half of May 2010, while the 32Gb segment also has declined by up to 3%, according to the latest data. The prices have been weakened by growing adoption of 3-bit-per-cell parts for memory cards and USB drives.
Demand for 2-bit-per-cell chips used in entry-level flash drives and memory cards has slowed down in the second quarter due to seasonality. While scaling up output of 3-bit-per-cell parts to cut manufacturing costs, suppliers are also adjusting their prices for 2-bit-per-cell chips.
Early May prices for 16Gb and 32Gb MLC chips averaged US$3.96 and US$7.29, respectively, according to the latest data. Meanwhile, prices for 32Gb 3-bit-per-cell chips have been adjusted downward slightly to US$6.16 on average in the first half of May as suppliers attempt to boost sales in the weak season.
Sources at memory card vendors have commented that demand for NAND flash has not picked up substantially so far in 2010, but major producers for the chip appear reluctant to cut prices. The chip vendors are believed to be sticking to their strategy for maintaining profitability.
The sources also speculate that NAND flash vendors may tend to adjust their output for the second quarter, in order to avoid price pressure.