NAND oversupply to impact DRAM market, iSuppli predicts
The present NAND flash memory glut is not destined to last very long—but even after the overage is resolved, the excess supply will continue to have a significant negative impact on pricing for another memory type: DRAM, according to iSuppli Corp.
NAND flash sales are set for continued expansion this year due to robust demand from the markets for consumer electronics, memory cards and mobile phones. However, due to the present poor situation, iSuppli is issuing a "negative" rating of near-term market conditions for NAND flash memory suppliers. This marks the initiation of iSuppli's rating of NAND market circumstances for suppliers.
With NAND demand growing more slowly than expected, the world's two largest memory suppliers, Samsung Electronics Co. Ltd. and Hynix Semiconductor Inc., have started converting production from NAND to DRAM. Furthermore, Samsung and Hynix have decelerated their overall plans for expansion of NAND flash production capacity. The two suppliers hope these moves will yield improved profitability.
Beyond that, Infineon Technologies AG and Elpida Memory Inc. said they plan to increase their DRAM bit shipments by 20 percent and by more than 60 percent respectively in the first quarter compared to the fourth. All these moves are expected to send DRAM prices down again—and soon.