Thursday, September 29, 2005
Spansion has since late September informed customers about price increases for its 4Mbit and 8Mbit NOR flash, according to industry sources.
Spansion only recently adjusted its prices and it is now again raising prices only a few weeks later, the sources noted. Quotes for 8Mbit NOR flash will grow to US$1.2-1.3, up from US$0.8-0.9. While 4Mbit NOR flash is also believed to be rising to US$0.7-0.8, up from US$0.5-0.6, according to the sources. If Spansion does raise its prices, SST may soon follow suit, the sources added.
The sources attributed the price raise to a bottleneck in NOR flash backend production. Since, 2003, testing and packaging houses have suffered a massive drop in pricing, and so have tended to be more cautious about NOR flash related investment. With NOR flash output currently on the rise, testing and packaging capacity is running short. The shortage of NOR flash backend production is unlikely to ease until the first quarter of 2006, the sources commented.
By: DocMemory
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