NAND Flash Prices Expected to Rise Significantly

Jan 3, 2020
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Reported by the sources at DigiTimes, the overall price of NAND flash is going to go for a steep rise in 2020. This report comes from multiple sources at memory chipmakers, most likely the more prominent companies like SK Hynix, Micron, and Samsung. With the increased price, consumers may be looking at a significant increase in cost for devices that utilizes NAND flash like RAM and SSDs.

The overall price of NAND flash may be going for a steep increase in 2020, marking up prices potentially by 40%

If this prediction is correct, then consumers should see a drastic price jump for SSDs or any products that use NAND flash memory. Everything from 2.5" SSDs, M.2 SSDs and NVMe drives could see a significant price jump in 2020. One of the possible reasons for this price jump could be the minute-long power outage at one of Samsung's NAND flash manufacturer plants.

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That incident alone could lead to a significant increase in NAND flash prices, and another possible reason may include an inefficient supply of materials used by NAND flash production or a simple supply-demand issue. This issue would hurt the prices of NAND flash long-term, this supply-demand issue could be due to SSDs being more sought after and some manufacturing issues that have been arising lately.

This power outage happened at a Samsung Electronics plant in Hwaesong, South Korea, this outage according to some sources that have "direct knowledge of the matter" had told Reuters that the outage most likely caused millions of dollars in losses. Semiconductor manufacturing is a very power-sensitive process, and any power loss or stoppage can result in many wasted batches.

This manufacturing process will take up to two days to recover from, for Samsung, this is a massive loss. Hopefully, the underlying problems can be worked out and that companies like Samsung, which got power outage accident, can supplement the capacity loss during the unplanned turn of events. Hopefully, these underlying problems for this potential price hike can be worked out, and those other manufacturers may be able to supplement the capacity loss during this unplanned turn of events.

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