The average price of NAND flash memory chips is expected to significantly stabilize thanks to increased production this year, an industry report showed Monday.

The average sales price (ASP) of NAND flash memory stood at US$0.31 per gigabyte last year, up 7.4 percent from a year earlier, according to the report by industry tracker IHS Markit.

However, the ASP is forecast to fall to $0.24 this year and further dip to $0.15 in 2019 before reaching $0.08 in 2021, equivalent to one quarter of last year's price, the report showed.

The supply shortage will also start to ease next year as major memory manufacturers, including South Korea's Samsung Electronics Co. and its smaller local rival SK hynix Inc., continue to ramp up 3D NAND production capacity.

Despite such a price fall, IHS Markit predicted that memory manufacturers will maintain their high revenue growth this year due to continued demand.

Global revenue from the NAND flash market is forecast to increase to $59.2 billion this year from $53.8 billion in 2017. Revenue is forecast to stay in the $50 billion range for the near future.

By: DocMemory
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