NAND Flash Market to See Weak Growth Momentum in 2H18


Reading time ( words)

The growth momentum for 2H18 NAND Flash market is expected to be weak, according to the latest report of DRAMeXchange, a division of TrendForce. Coupled with continuous improvements in yield rate and output of 64/72-layer 3D NAND Flash, DRAMeXchange expects the market to approach a balance between supply and demand, the contract prices of NAND Flash products are expected to decline further.

The contract prices of NAND Flash products have been decreasing for two consecutive quarters in 1H18 due to the traditional off-season and capacity expansion of 64/72-layer 3D NAND Flash. During this period, suppliers provided competitive prices for high-density products to boost the memory content per box, aiming to further improve the demand in peak season. Meanwhile, suppliers have postponed further plans of capacity expansion, hoping to moderate the price decline.

On the demand front, growth momentum for 2H18 NAND Flash market is expected to be weak although Q3 is the traditional peak season, with demand from smartphones, notebooks and tablets growing by 0-1%, 0-1%, and 9-10% QoQ respectively. Suppliers may further lower the quotes to boost the demand, which will result in steeper-than-expected price decline. 

Prices decline is expected to continue in 4Q18, yet sales of new iPhones may influence the market situation

Going forward to the fourth quarter, suppliers may not release much new capacity, but the yield rate of 64/72-layer products is expected to grow mature, exceeding 80%. Moreover, suppliers may also add new capacity or transfer some of the current capacity to 96-layer production, which would further boost the bit output growth.

In terms of the demand, the momentum remains weak due to slow growth of notebook market, lack of specification upgrade in the smartphone market, and less replacement demand. The demand growth fails to offset the new supply, probably leading to the steeper drop in prices in Q4 compared with Q3. However, the market situation will depend on the sales of new iPhones, which may moderate the price decline. 

Osaka earthquake had limited influence on Toshiba and its NAND Flash supply

A 6.1-magnitude earthquake hit Osaka on June 18, 2018. Yokkaichi, where Toshiba’s NAND Flash fab locates, also had 4-magnitude tremor. DRAMeXchange learns that Toshiba underwent an inspection immediately after the earthquake, and finished checking the wafers on June 19. Only limited number of wafers were influenced and can be fabricated normally after rework, bringing almost no influence to the market. The fab has returned to full operation soon after that.

Share


Suggested Items

Seeing Clearly: XR Headsets and Flex’s Reference Design at AWE

06/26/2018 | Dan Feinberg, Technology Editor, I-Connect007
At this year’s CES, they announced the launch of an extended reality (XR) reference design for the next generation of XR headsets. As the “sketch-to-scale” solutions provider, as they describe themselves, that designs and builds “intelligent products for a connected world,” they have now introduced an augmented reality (AR or, as we now call it, XR) reference design to reduce time to market for companies wishing to make and market XR devices.

RTW IPC APEX EXPO: Kimball Electronics Discusses New Opportunities in the Medical Market

03/15/2018 | Real Time with...IPC
Tom Ferris, business development director for Kimball Electronics' medical industry solutions business, discusses the latest opportunities in the medical market and new requirements from customers.

Surprising European EMS Market Numbers

10/27/2017 | Dieter G. Weiss, Weiss Engineering
If you think market analysis is always correct and predict the future exactly, you are mistaken. The latest annual reports from EMS companies with manufacturing sites in Europe have changed the picture on the European EMS industry quite a bit and caught us by surprise. Yes, you read that correctly: SURPRISE.



Copyright © 2018 I-Connect007. All rights reserved.