DRAMeXchange forecasts shortage of NAND flash memory chips

DRAMeXchange.com:

From demand side perspective, we expect various of NAND Flash application end product will recover in 2010 given the better global economy. The density of traditional NAND Flash application such as MP3, memory card and UFD will be continuously lifted. Also, new application products such as smartphone will sustain the growth momentum power for NAND Flash market. NAND Flash vendors will keep focus on promoting the SSD in 2010. Therefore, according to DRAMeXchange, 2010 worldwide NAND Flash demand bit growth will be up 81% yoy to 10,986M GB.

From supply side perspective, most NAND Flash vendors will set up the 2010 supply target based on the 2010 demand growth rate to maintain the market at the more balanced status in order to help stabilize price and improve profitability, given most makers are still at the cross over of turning profit. Therefore, NAND Flash vendors are still conservative toward supply expansion plans.

Related: Prices of DRAM chips are heating up.

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