 NAND Flash Prices 4Q 2008
Korea's leading media is reporting that Hynix Semiconductor, ranking third in the global NAND flash market after Samsung Electronics and Toshiba with a 13.4 percent market share, has opened a third plant on their main production site in Cheongju, North Chungcheong Province last Thursday. This new NAND flash factory, nicknamed Fab M11, will be exclusively producing NAND flash chips starting from September, as recently announced by Hynix.
Reports say that also Hynix' main competitor Samsung is further expanding it's production capacities to gain advantage of their current leading position on the NAND flash market, and to flex muscles and stabilize their current stance by putting further pressure on both newcomers and the more established players.
Also some of the older players, such as Transcend Information, Inc. over on Taiwan are being reported to have gained momentum and building up major shares of the worldwide NAND flash market. Mainly due to last year's slow growth in capacity, the global sales revenues for USB flash drives and NAND flash memory has remained more or less steady throughout 2007-2008, while the total amount of shipped units has enjoyed a major increase. This has lead to fierce competition among suppliers and many of the smaller players have been whipped from the field. As price competitions keeps roaring, and the main players introduce new technologies that reduces the cost of production per chip while boosting capacities and volumes, NAND flash prices have been constantly reduced over the last few months as customers benefit from lower prices for NAND flash applications and finished end-products such as USB flash drives.
This is good news for users and customers who now can enjoy bigger capacities for less the price. Over in Taiwan the people at DRAMeXchange Technology predicts that falling prices for NAND flash memory and lower prices for storage media, will lead to suppliers and producers building up inventory, so that NAND flash prices may start to recover during the fourth quarter of 2008.
One thing is for sure: the upcoming 4th Quarter will be interesting for all players in the industry and the usage of increasing memory sizes and capacities also for promotional USB flash drives might lead to more affordable high-end products where casings and materials used to hold the NAND flash gain importance and overall quality of the product overplays the factor of mere memory size and capacity.
We also observe a growing focus on content related benefits of USB flash drives, and more innovative methods to transmit corporate marketing messages using data pre-loads that contain valuable information to the end-user and the targeted audience, often also in combination with online services or subscriptions to data synchronizations via the internet.
We at MemoTrek focus on establishing lasting relationships with our customers and one of the ways for us to achieve this with is to make sure that our customers benefit from our up-stream market position and our access to NAND flash memory from Hong Kong's spot market at most competitive prices.
Our weekly price updates guarantee that you buy the best prices on the market while ensuring prime quality NAND flash from trusted sources and manufactured by one of the main NAND flash memory producers.
In case you purchase your end-of-year seasonal corporate gifts with after September, chances are that you might even get a batch of grade A Hynix NAND flash, made and produced in the new semiconductor plant in Cheongju. And if not from this brand new plant, then at least you can rest assured that you've purchase quality memory from one of the major producers and to the best price/quality ratio on the current market.
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