NAND Flash Makers Reducing Production to Prevent Further Price Drops

Paul Lilly

Oversupply of NAND flash memory has pushed prices down

It's tough to get a pulse on the NAND flash memory market. On one hand, you have OCZ selling off all of its assets to Toshiba and filing for bankruptcy in part because a shortage of NAND chips put the company in a tough spot. Days later, we're finding out that NAND flash chip suppliers are stuck with an oversupply of parts and plan to cut production to try and stabilize prices.

According to Digitimes , the oversupply situation is worse than suppliers expected and its causing chip prices to fall. The cost has been cut "irrationally" since the end of November, sources told the news and rumor site. As a result, prices for microSD memory cards notched double-digit declines in a single month.

Strong demand for smartphones nad tablets helped NAND flash memory prices stay high during the first half of the year, but since then, sales have declined. On top of that, there's speculation in the memory industry that Apple slashed its orders for NAND flash from its Japan-based supplier, which only exacerbated the issue.

In any event, if you spot a good deal on a NAND flash memory based product, you may want to pull the trigger.

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