DRAMeXchange is predicting a price hike in NAND chips over the coming year thanks to a supply decline combined with an impressive rise in demand. The supply decline is a direct result of the industry's switch in preference to 3D NAND, which requires manufacturers to retool their existing lines. While retooling from the production of 2D to 3D NAND, the line can produce neither and as all available lines were currently at or near full volume production, we are seeing a decline in the amount of available flash chips. Even once lines are retooled, only Samsung has seen an increase in their production volumes, a situation which will hopefully change in the coming year. With demand on the rise as more and more users switch to SSDs and the amount of storage on cellphones increasing in each new model we can only expect to see prices rise. DigiTimes reports a predicted 10% rise in average SSD prices in Q1 of 2017, with prices of eMMC and UFS storage jumping even more.
"From the supply side, the industry-wide transition to 3D-NAND is now moving at full speed," said Sean Yang, research director of DRAMeXchange. "However, most suppliers with the exception of Samsung have not improve their yield rates for the technology as quickly as they would like."
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