Contract quotes for 16Gb and 32Gb NAND flash chips have shown signs of stabilizing in the first half of June 2010 as Apple stepped up the procurement of NAND flash parts. The increased production of 3-bit-per-cell parts by Samsung Electronics and Toshiba may affect the market for low-density NAND flash chips.
Besides Apple products, a slew of the latest smartphones have also adopted 16Gb and 32Gb NAND flash, which stimulated demand for the high-density chips.
In the low-density segment, memory module makers are going through tough times with Toshiba and Samsung rolling out 3-bit-per-cell (TLC) chips. The chips, which are inferior in quality, cannot be used as built-in memory for smartphones, tablets and SSD. The NAND flash suppliers are forcing the low-density chips into the hands of memory card makers, according to industry sources, noting that retail demand for this type of product is quite weak at the moment.
Though SSDs are expected to be a main application for NAND flash in 2010, they require SLC or MLC chips. Unfortunately, the priority of NAND flash suppliers is shipping to system manufacturers at the moment, the sources said.
Some module makers are less pessimistic. They expect demand to rebound in the second half of 2010 with the back-to-school season and year-end holiday season in sight, and especially if demand for handset memory cards in emerging markets such as China and India continues to heat up.