Average contract prices for mainstream 16Gb and 32Gb MLC NAND chips rose 4-5% to US$3.66 and US$5.66, respectively, in the first half of March 2011. Meanwhile, 64Gb parts were quoted at US$10.12 on average for the period, up 8%.
Industry observers said the price rallies have nothing to do with supply concerns arising from the earthquake and tsunami in Japan. Major NAND flash chip suppliers have stopped providing price information, the observers indicated.
Having risen over the past two days, NAND flash prices at the spot market began to trend downward on March 16. Spot prices for 16Gb and 32Gb MLC chips dropped 5.5% and 3.8%, respectively, in one day to close at US$4.66 and US$6.01 on March 16.
Smartphones and tablets are viewed as the major demand drivers for NAND flash in 2011. Many market observers believe that major chip suppliers will continue to give priority to handset and other system manufacturers in 2011.