1H’Dec. mainstream MLC NAND Flash contract price rebounded 3-11% triggered by the Toshiba’s power outage accident

Although inventory replenishment peak for year-end hot sales is over, some memory card and UFD makers are re-stocking in small volume given the dropping inventory level at early December, it resulted in the stabilizing NAND Flash price. At the expectation of shipment decline in January and February impact from the power outage in Toshiba’s NAND Flash planet in Yokkaichi on Dec. 8, end-customers are initiating earlier for the re-stocking and result in the 3-11% mainstream MLC contract price rebound in 1H’Dec. However, still some vendors implemented price promotion strategy in early December and result in price decline in some chips.

According to Toshiba’s rough estimation, despite of no shipment impact in December, yet the power outage will likely impact the shipment as much as 20% in January and February and output will be back to normal status in March. DRAMeXchange expects the max accident impact on the 1Q11 global NAND Flash supply decline may be up to 5% and turn the 1Q11 NAND Flash market into mild shortage from over-supply if no new output is added from other vendors in the quarter.