Late December 2010 contract prices for most MLC NAND flash chips have remained flat with mainstream 16Gb and 32Gb parts quoted at US$3-3.50 and US$4-5, respectively, according to industry sources. The sources expect prices for the first quarter of 2011 to be buoyed by Toshiba's NAND supply cutback as well as demand coming from the tablet PC sector.
A recent power outage in Yokkaichi, Japan hit Toshiba's shipments, with NAND flash chips estimated to fall by up to 20% in January and February. A reduction in global supply is anticipated simultaneously to prop up prices during the period, the sources said.
Meanwhile, if consumption of NAND flash in tablet devices expands at a fast pace, chip prices will see more significant growth in the first quarter of 2011, the sources indicated.
However, with new NAND flash capacity coming online in the second half of 2010, prices may start facing downward pressure, the sources pointed out. Demand has to be strong enough to sustain prices, the sources added.
Smartphones and tablets are seen as the major demand drivers for NAND flash in 2011.
Samsung Electronics, Toshiba and Micron have all sketched out plans to expand their capacities for NAND chips in 2011.