Warning of the cost of NAND Flash to rise

It is reported that Japanese NAND manufacturing accounts for up to 33% of the world’s NAND Flash memory. Due to 20% of the loss of power production in Japan following the terrible events that happened on the 11th March 2011.

Companies in Japan have closed factories and others have to suffer power rationing. The demand for NAND Flash has never been higher, with the prevalence of smartphones, tablet PCs, USB Pen Drives and Memory Cards, this will only cause the price of NAND Flash, used in Solid State Disks, to rise.

We have been warned by many of our suppliers that the prices may change very soon, as stocks deplete.

Toshiba are badly affected, the knock on effect will be that companies will look to other suppliers such as Samsung and Micron for their supply. These companies will see the demand increase and therefore see an opportunity for higher profit.

I believe that demand already out strips supply anyway, which is one of the reasons why SSD prices are still high in the marketplace, despite the fact that prices are dropping to a more affordable level. This set back may cause the prices to rise again as stocks of NAND Flash drops.

I will blog the findings as they are revealed.

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