With NAND flash demand regaining momentum, sourcing sufficient NAND flash chips has become more difficult, accelerating consolidation in the memory card industry, as witnessed in the considerable number of small-scale memory card makers being phased out of the market, according to industry players.

Although NAND flash prices experienced a trough earlier this year, prices have rebounded, though this is not necessarily good news as not all memory card makers are capable of sourcing sufficient NAND flash supply, especially when Apple has booked considerable amounts from leading chipmakers.

Supply strains are being exacerbated further as chipmakers are still seeing technology migration issues, with yields expected to take some time to improve, the industry players noted.

About half of the second- and third-tier players have phased out their NAND flash business, as those memory card makers have no choice but to leave their production lines idle under a NAND flash shortage, industry players highlighted.