News says NAND flash prices will rise by 40%

Flash memory prices continued to soar in 2016-2017, causing solid-state hard drives and memory modules to continuously break new highs, and prices only began to fall sharply in 2018- 2019. However, the real reason for the price to start rising again maybe market demand. The supply chain news obtained by DigiTimes shows that flash memory demand will continue to rise during the year. The increase in the price of flash memory will inevitably drive the prices of products such as solid-state drives and memory modules.

Image: Kingston

DigiTimes has received news from the supply chain that NAND flash contract prices will increase by 40% in 2020 and will continue to increase prices of peripheral products. In the short term, the price of NAND flash memory chips will increase by 10% in the 2020 Q1 quarter. This price will actually maintain this trend in the Q4 2019.

As for the factors of the price increase, the news given by the supply chain is the expansion of large data centers, and the booming development of public cloud computing will increase the demand for flash memory. As a result, there has been a short-term supply shortage of enterprise-level solid-state hard disk products, which will allow flash chip manufacturers to shift more capacity to enterprise-level products. The demand for personal and household consumption has not fluctuated too much.