1HSep. mainstream MLC NAND Flash average contract price rose 3%~12% due to the warming demand for inventory replenishment of hot season.

1HSep. NAND Flash mainstream average contract price adjusted up 3%~12% due to the inventory replenishment for hot season. Most NAND Flash suppliers have received restock orders from some electronics system customers for year-end sales. Recently memory card and UFD demand is warming up for the preparation for China holidays in early October. Currently NAND Flash suppliers put electronics system customers in higher priority for the sake of the larger orders, that is, we believe the aggregate output can not completely satisfy the memory card makers’ additional demand in September. 1HSep. NAND Flash contract price roughly showed the upward trend given the fact of tighter supply.

Since September and October are the peak season of inventory replenishment for downstream customers and output supply will gradually increase along with the raising portion of 3Xnm process technology products starting from October, we believe that the tighter supply situation will continue after mid-September. Therefore, NAND Flash price uptrend momentum is expected to sustain in the short term given the recently warming concentrated inventory replenishment effect.