NAND prices continue surging

nand-chipsPrices of NAND flash memory are set to continue rising this month and beyond, as a result of strong demand for mobile devices. According to a report from DRAMeXchange, NAND prices are showing signs of rising in the second half of June due to inventory restocking.

NAND contract prices rose two to four percent in the first half of June already, compare to May. DRAMeXchange says OEMs rushed to boost their inventories at lower prices, resulting in a shortage. The surge in demand is likely to push prices even further in the near future, despite the fact prices tend to go down seasonally over the summer, reports Focus Taiwan.

DRAMeXchange pointed out that no major manufacturers, aside from Toshiba, have any immediate plans to boost capacity in the third quarter. It concluded that NAND production between July and September is likely to rise slowly, at less than ten percent from the previous quarter.

However, demand for flash in the third quarter is expected to increase by more than 10 percent from the second quarter, resulting in a significant shortfall. Obviously, tight supply could push up NAND prices toward the end of the year.