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The NAND Flash market remained tight in the first quarter of 2017 as it had been in the preceding quarter, according to DRAMeXchange. Despite seasonality, average contract prices for NAND flash chips surged 20-25% sequentially in the first quarter.
Prices for mobile storage products such as eMCP, eMMC and UFS have also been rising, said DRAMeXchange, which expressed optimism about NAND flash suppliers’ revenue outlook for 2017.
“The overall production capacity for 2D-NAND has fallen during the industry-wide migration to 3D-NAND manufacturing,” said Alan Chen, senior research manager of DRAMeXchange. “As the market has yet to regain its balance following this disruption, contract prices of NAND flash chips will keep going up.”
Despite the first quarter being the traditional slow season for end device shipments, the reduction in 2D-NAND capacity was severe enough to result in tight supply during the period. Consequently, the NAND flash industry saw a slight 0.4% revenue dip sequentially in the first quarter, DRAMeXchange indicated.
With the market shortage set to persist throughout 2017, NAND flash suppliers are expected to enjoy sequential revenue increases through the fourth quarter of the year, DRAMeXchange said.
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