Contract prices for MLC NAND flash memories all stopped falling in late August, according to DRAMeXchange. Average prices for 16Gb and 32Gb MLC NAND chips saw sequential growth of 3-6% in the second half of August while those for high-density 64Gb ones remained flat.

Late August contract prices for 32Gb 3-bit per cell MLC chips were similar to the levels in the first half of the month, according to DRAMeXchange.

DRAMeXchange credited the price stabilization to a slight rebound in buying sentiment. Prices will be further boosted by inventory-building demand from system manufacturers starting September, ahead of their new product roll-outs, the price tracker expects.

Upcoming launch of tablet PCs, smartphones and Ultrabook devices will play the role of key factor in sustaining NAND flash prices in September and the following several months, according to sources at chip and module suppliers. System customers have stepped up their pace of orders in preparation for the launch of new models, the sources claimed.

The sources also pinpointed increased demand for SSD and embedded storage applications as other potential factors affecting NAND flash pricing. In particular, SSD demand is expected to receive a boost buoyed by its adoption by Ultrabook devices, the sources said.

However, the sources expressed concerns about whether demand is strong enough to digest the industry's capacity. New 12-inch capacities at Samsung Electronics, Toshiba and SanDisk's joint fab and at the Intel-Micron Technology joint venture are all set to come online in the fourth quarter of 2011.

Source:digitimes