Analyst firm TrendForce found that the recent wave of COVID-19 outbreaks in India has weakened retail sales of products such as memory cards and USB drives. However, demand in the main segments of flash memory products remains strong due to seasonal factors and increased purchases associated with data centers. Analysts believe that, coupled with a continuing shortage of NAND controller chips limiting finished product production, this will drive contract prices up 5-10% on average in the current quarter.
This will be boosted by the growing demand for notebook SSDs and the release of new Intel Ice Lake processors, driving the adoption of solid state drives. At the same time, the average SSD size is growing. On the other hand, NAND flash vendors are shifting to higher density ICs to increase their market share. This factor acts on contract prices as a downward one.
With all of these factors in mind, TrendForce predicts that contract prices for client SSDs will rise by about 3-8% qoq, while for enterprise SSDs by 15%.
The growth of contract prices for eMMC and UFS modules will not exceed 5%. Contract prices for wafer form NAND will rise 8-13%.