Memory controller IC supplier Phison Electronics expects contract quotes for NAND flash chips to move upward in the third quarter, which will help push its third-quarter revenues, according to company chairman Khein Seng Pua.
Pua said system vendors have started to build up their chip inventory for the upcoming peak season. Demand in the contract market is picking up, though the spot segment remains slow, Pua indicated.
But Pua expects supply in the spot market to drop resulting in a price rally later in the third quarter. Major NAND flash vendors will limit their supplies to the spot market as demand from their OEM customers is strong, Pua said.
Phison is expected to enjoy revenue growth of 10-15% sequentially in July, according to Pua. Revenues for the third quarter will be higher than the second-quarter level, said Pua.
Phison reported revenues of NT$7.54 billion (US$236 million) for the second quarter of 2010, down 5% sequentially and in line with market expectations. The figure showed 40% growth compared to a year earlier.
Contract prices for 16Gb MLC chips averaged US$4.02 in the first half of July, up from US$3.96 in the second half of June, according to the latest data. However, the price of 32Gb MLC parts slid to US$6.58 from US$6.67 in the latter half of June.