Nand Flash Capacity to Expand Noticeably in Q4
October 17, 2017 | TrendForceEstimated reading time: 2 minutes
Despite lower-than-expected output caused by certain problems in production lines, Toshiba will be able to deliver its NAND Flash shipments as per the dates and volumes in its fourth-quarter contracts, says DRAMeXchange, a division of TrendForce. After confirming with sources, DRAMeXchange refutes a report alleging that Toshiba’s monthly NAND Flash capacity has been reduced by nearly 100,000 wafers and some of its production lines have been suspended.
Alan Chen, senior research manager at DRAMeXchange, stated that Toshiba’s production trouble will not have a major effect on the overall NAND Flash supply and demand in the fourth quarter of 2017 and in the first quarter of 2018. As for the NAND Flash spot market, there is no module supplier suspending quotes or shipments after knowing this information. This incident is expected to be resolved immediately with Toshiba quickly ramping up production to lower or fully compensate for the wafer deficit.
Chen noted that DRAMeXchange’s market outlook for this fourth quarter remains unchanged. The supply gap in this period will be smaller than in the third quarter. This also signals that the supply will eventually meet up to the demand, thus achieving market balance.
“Several factors are at work to make this happen,” said Chen. “First, non-Samsung suppliers are gradually moving their 3D-NAND processes into the volume production stage. Furthermore, the release of iPhone X encountered unexpected delays. A part of Apple’s demand for iPhone storage components therefore has also been deferred to the first quarter of 2018. On the whole, the NAND Flash demand in the fourth quarter of this year will be lower than initially anticipated.”
Even with the slight decline in Toshiba’s output, overall supply on the market will still expand conspicuously in the fourth quarter from the third quarter of 2017. Furthermore, NAND Flash demand in the channel market has remained sluggish unless NAND Flash suppliers lower their prices and ensure that the supply is more stable.
In the first quarter of 2018, the NAND Flash demand may be sustained by the strong sales of the latest iPhone devices. However, the markets for other end products will be affected by the seasonal headwinds. From the supply side, the overall production capacity of 3D-NAND products will keep expanding as suppliers improve the yields of their respective processes. Thus, supply will likely catch up to demand during the first half of 2018 and may even exceed it slightly. Only the return of busy season in the second half of 2018 will again put strain on the supply.
Suggested Items
Commercial Demand Continues to Be the Main Driver of Personal Computing Device Shipments into the GCC Region
03/26/2024 | IDCThe Gulf Cooperation Council (GCC) personal computing device (PCD) market, which is made up of desktops, notebooks, and workstations, declined 4.0% year on year in 2023, with high inventory levels and reduced consumer spending the primary causes.
Suppliers Aim to Raise Contract Prices, But With Uncertain Demand, 2Q24 DRAM Price Increase Expected to Narrow to 3–8%
03/26/2024 | TrendForceTrendForce’s latest report reveals that despite DRAM suppliers’ efforts to trim inventories, they have yet to reach healthy ranges. As they continue to improve their lose situations by boosting capacity utilization rates, the overall demand outlook for this year remains tepid.
LPKF Reports Strategic Successes and Narrowly Achieves Forecast for 2023 Financial Year
03/26/2024 | LPKFLPKF Laser & Electronics SE generated revenue of EUR 124.3 million in the financial year (previous year: EUR 123.7 million) and earnings before interest and tax (EBIT) of EUR 3.7 million (previous year: EUR 6.8 million), putting the EBIT margin at 3.0% (previous year: 5.5%).
Arlon EMD and EMC Announce Expansion in California
03/25/2024 | Arlon EMDArlon EMD, a division of Elite Materials Company (EMC), announces a factory expansion at the Rancho Cucamonga, CA location. Arlon is a global leader in high performance thermoset substrates for mission critical printed circuit boards manufactured for high endurance and long-life programs. Arlon has a 45-year history of manufacturing specialty materials for the Aerospace, Industrial and Military (AIM) markets.
Intraratio Enhances MES + Yield / IoT Management with New Advanced Manufacturing Analytics
03/22/2024 | IntraratioIntraratio announced AICard, which harnesses the power of artificial intelligence and machine learning to empower manufacturers to make informed decisions quickly and accurately regarding product quality and manufacturing line performance and optimization.