Industry sources told DigiTimes that flash memory chip prices are no longer dropping as suppliers have cut back their production. Price stability is expected to last through September, after that it will depend on end-market demand and overall economic conditions.
While demand for USB flash drives and memory cards remains sluggish, major NAND flash producers reportedly have scaled down their output with an aim to lift the chip prices. Prices were pushed up as much as 40-60% in the short term, and have stabilized. However, demand strength is still needed to sustain price growth and stability, the sources noted.
Kingston Technology also agrees with the observation. The memory module vendor has expressed concern that if demand fails to catch up with supply, there might be another correction of the chip prices in the fourth quarter.