Memory module makers are seeing a sharp decrease of 50% in supply of single-level-cell (SLC) NAND flash chips from Samsung Electronics in September compared to August, as the Korean supplier is giving supply priority to new products from major vendors, such as Apple Computer, according to industry sources.
While the drop in SLC flash chip supply has resulted in a shortage of 8Gb NAND flash, the sources pointed out that supply of multi-layer-cell (MLC) flash chips from Samsung is increasing.
The shortage in the SLC segment and the increased supply in the MLC segment has widened the price gap between the two segments, which previously had seen their gap narrowing because of sharp drops in SLC flash chip prices, the sources indicated. NAND flash prices have dropped 60% in 2006, mostly as a result of price drops in the SLC segment, the sources added.
The sources pointed out that the changes in NAND flash supply will help improve the memory module makers' profits, as the cheaper MLC segment is expected to become the mainstream, boosting demand in the end-product markets.
NAND flash demand is warming up because of tight supply, low inventory at clients and launches of high density products, the sources remarked.
