Contract prices for most multi-level cell (MLC) NAND flash chips remain flat for the second half of December 2009, but higher density segments have come down 1-5% on slow trading, according to data gathered.
Contract prices for 16Gb and 32Gb chips have slid 2-7% and 0-3%, respectively, to average US$4.42 and US$7.18 in the latter part of the month, while the 8Gb segment remained flat at US$4.02 on average.
Downstream module makers originally intended to make a bargain with their chip suppliers around year-end 2009, in order to build up stock at lower costs, according to industry sources in Taiwan. However, chip vendors have seen no need to stuff current inventory supply to module customers as a result of production cuts earlier in the year.
The sources said NAND flash prices have been stable in December, despite seasonality. Downstream players have started restocking inventory in preparation for Lunar New Year holiday sales, as they are concerned supply may become tighter due to chipmakers' efforts to advance their process technologies instead of pursuing capacity expansion.
Major chip producers scaled down their production or put planned capacity expansions on hold amid poor market conditions earlier in 2009, which led to a more stabilized pricing trend at the end of the second quarter, according to previous reports.