Prices for microSD cards are expected to undergo a correction as suppliers move forward in their efforts to clean inventories, according to industry sources.

Concern over supply constraints had raised previously, and prompted module makers to boost their orders for microSD cards, the sources said. However, module suppliers have started cutting down the size of their microSD card orders, as their inventories expand to above normal levels on sluggish end-market demand, the sources indicated.

Meanwhile, NAND flash chip suppliers are still negotiating with their downstream clients, and have yet to come out with official price quotes, the sources noted. Due to high inventory levels, device manufacturers and distributors are unwilling to accept prices quoted by chip suppliers and the latter are reluctant to lower quotes. Both sides have not reached a consensus to settle on contract prices since June.

NAND flash contract prices have seen contraction since late April, the sources said. Continued slowdown in demand is the major cause, the sources observed.

Prices for NAND flash chips and microSD cards could bottom out in the middle of the third quarter or the beginning of the fourth when inventory pressure should ease to normal levels and peak-season demand should kick in, the sources indicated.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved