Tech Talk: Rising prices of NAND Flash storage

Since the end of 2016 the NAND Flash storage prices have skyrocketed, price increases in the two-digit range, due to the strained market situation, are more than common. The reasons for the NAND Flash storage shortage are multi-layered:

 

• • High demand of 2D NAND Flash because more and more companies abandon the usage of hard drives.• Transformation from 2D to the 3D NAND technology entails a constraint to production capacities.
• • Delay of the technology change doesn’t lead to the release of tension. Samsung and Mircon are so far the only manufacturer whose 3D NAND production contains 50% and more. The cooperation partners Toshiba and Western Digital plan to increase its share to 50% by the end of 2017.
• • Uncertainty about Toshiba’s memory chip division that is offered for sale. Companies like Western Digital, Broadcom, SK Hynix and Foxconn attempt to gain the industry giant.
• • Delivery priority of big OEM implies that smaller system suppliers are losing ground.

Market analysts and industry experts anticipate that this shortage will continue for the time being. The price situation will eventually recover by the end of 2017 / in the beginning of 2018.

Unfortunately, our products are also affected by these volatile market prices. If you would like to ensure more price certainty for your daily and project business, please contact us. We look forward to discuss further details in a personal conversation with you.