Prices of NAND flash, a type of memory chip used in storage products, such as memory cards and USBs, are expected to continue rising in the second half of June and beyond in view of the increasing popularity of mobile communications devices, a research report said on yesterday.

The report stated that as the effects of peak season in the high-tech sector were expected to continue into the second half of this year and further boost demand for smartphones and tablet computers, original equipment manufacturing (OEM) service providers have started to build up their NAND flash inventories.

In the report, DRAMeXchange, a memory chip research division of Taipei-based TrendForce Corp., pointed out that NAND flash prices showed signs of rising in the first half of June due to limited supply during the inventory restocking period.

According to DRAMeXchange, NAND flash contract prices in the first half of June rose 2-4 percent, compared with the second half of May.

DRAMeXchange said OEM service suppliers rushed to increase their inventories amid fears that rising demand will further push up NAND flash prices in the near future, a development which has defied conventional wisdom that it was still low season for the memory cardand USB business.

DRAMeXchange stated that except for Japan's Toshiba, no other major supplier had any immediate plans to boost production capacity in the third quarter. Therefore, it added, NAND flash production during the July-September period is likely to rise less than 10 percent from the previous quarter.

By: Docmemory
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