Dense NAND is in short supply
2009-12-16
THE SUPPLY of high-density NAND flash memory will fall short next year as suppliers can't get enough of it to jack under the bonnets of all the smart phones everyone is expected to buy. Meanwhile Digitimes is reporting that the estimated prices for low-density parts based on mature processes will be slashed significantly next year. Analysts are predicting that the outlook for NAND flash is still rosy but major chip suppliers are reluctant to splash out on expanding capacity. Production is being boosted by migrating to more advanced process geometries rather than just going flat-out making the stuff. But the worry is that approach will not build enough parts if the market for high-end phones heats up more. Already major NAND flash producers are giving supply priority to new products from system vendors, prompting downstream module makers and distributors to move to diversify their upstream suppliers. Meanwhile the price of low-density NAND flash chips used in entry-level USB drives and flash cards is expected to drop down the loo. It seems no one wants old technology.