Early December contract prices for multi-level cell (MLC) NAND flash memory have grown, with 32Gb chips enjoying the largest rise at 5-11%. Quotes are expected to continue trending upward through January and February 2011, but at smaller rates, the sources said.
The sources pointed out that major chip suppliers intended to raise contract quotes in recognition of growing demand for smartphones and tablet PCs. Toshiba's NAND supply cutback due to a power outage at its plant also led to the price rally, the sources indicated.
Rising NAND chip prices have also benefited downstream device makers, which are able to receive gains from appreciating inventory, the sources said. However, continued sluggish demand in the retail channel is also challenging their ability to raise prices, the sources observed.
The sources noted that the power outage at Toshiba did not significantly buoy prices for flash memory cards and drives. Since the incident on December 8, prices have risen by only 3-5%, the sources said.
Toshiba has said shipments of its NAND flash memory chips may fall as much as 20% in January and February because of the power outage.