(PR) Prices of NAND Flash Controller ICs Poised to Rise by 15-20% due to Tightening Production Capacity for Foundry Services, Says TrendForce

(PR) Prices of NAND Flash Controller ICs Poised to Rise by 15-20% due to Tightening Production Capacity for Foundry Services, Says TrendForce

In the upstream semiconductor market, the key foundries this sort of as TSMC and UMC are reporting fully loaded capacities, though in the downstream, the offered manufacturing ability for OSAT is also missing, in accordance to TrendForce’s hottest investigations. Supplied this scenario, suppliers of NAND Flash controller ICs this kind of as Phison and Silicon Motion are now not able to meet upside demand from customers from their consumers. Not only have quite a few controller IC suppliers temporarily stopped offering quotes for new orders, but they are also even contemplating increasing costs shortly for the reason that the negotiations in between NAND Flash suppliers and module houses more than 1Q21 contracts are now at the essential juncture. The probable increases in price ranges of controller ICs from outsourced suppliers (IC design and style residences) are presently approximated to be the variety of 15-20%.

With regards to the need facet, demand has risen significantly for eMMC options with medium- and lower-density specifications (i.e., 64 GB and decreased), for which NAND Flash suppliers have largely stopped updating the NAND Flash course of action know-how, while protecting aid with the legacy Second NAND or the 64L 3D NAND approach. This is on account of powerful sales for Chromebook gadgets and TVs. As more mature processes slowly account for a decreasing part of little bit output proportions from NAND Flash suppliers, these businesses are exhibiting a decreased willingness to specifically provide these types of eMMC items to purchasers. As a outcome, shoppers now have to have to turn to memory module properties, which are equipped to resource NAND Flash parts and controllers, to procure eMMC products in significant quantities.

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