NAND flash 2HAug average contract price indicates mild 1-7 percent decline

TAIWAN: According to DRAMeXchange, the research division of TRENDFORCE, the 2HAug. average NAND Flash contract price indicated a mild 1-7 percent decline.

Memory card and UFD makers still contain the high inventory level while channel retail market is still sluggish. With the reluctant procurement willingness, they tend to be more hesitant toward the market and look forward for price-cut promotion at the purpose of demand stimulation.Therefore, those NAND Flash vendors with higher portion in memory card and UFD customers demonstrate the decline mainstream contract price pattern in 2HAug.

DRAMeXchange indicated that NAND Flash market is continuously impacted by some pro and con market dynamics due to:

a) Retail demand for memory card and UFD is still weaker,
b) Quarter-end effect will weaken the procurement demand of customers and push suppliers to adopt promotion events on inventory concerns.
c) 2xnm output portion will gradually rise in 4Q10.

Given the different market perspectives held by buyers and suppliers toward the following NAND Flash pricing trend as well as the individual supplier with different customer and product mix, various pricing strategy will be implemented.

DRAMeXchange expects the NAND Flash contract price to remain mild decline ahead of the year-end restock demand peak period.