14 DAY TRIAL // While DRAM prices are falling because of continuously weakening demand, NAND Flash chips have actually been getting more expensive, especially those of 16Gb capacity, though it seems that this trend may finally be discouraged.
NAND Flash memory chips, whether of the single-level cell or multi-level cell variety, are found in a variety of storage solutions nowadays.
The list includes such things as consumer-oriented and enterprise solid state drives (SSDs), flash drives and memory cards.
Last week, demand from the Greater China area surged more or less unexpectedly, leading to a strong rebound growth of 6 percent for NAND Flash chips of 16Gb.
So far, 16Gb chips were in short supply because vendors were reserving most of their capacity for the production of high-density NAND Flash memory chips.
As such, most of those available were provided by either Hynix or Samsung Electronics and were constructed on the 40nm manufacturing process.
Now, Digitimes reports that, according to inSpectrum, that momentum only lasted throughout the start of this week.
The reason why the rise did not continue was because major brokers and traders said that Samsung Electronics supplied more 16 Gb chips, onlty they were based on the more advanced 32nm manufacturing process than the 40nm technology.
Apparently those chips, instead of actually sporting a higher price, were quoted as having a 10 percent discount below their average street price.
Basically, demand for low-density chips got in line with what was expected for the season, finally prompting the chip prices to slide back down.
The main reason that Greater China showed such high demand was that the National Day holidays in early October are approaching.
For those interested in actual numbers, on September 17, 16Gb MLC NAND Flash chips had a spot price of US$4.40 (down 6 percent), whereas 32Gb fell by 4 percent, to US$5.18.