Earlier, sources at the company had said that NAND flash prices would fall further in fourth-quarter 2010 or first-quarter 2011 if chipmakers did not adequately manage their capacity and output.

NAND flash prices, like LCD panels, are affected by any fluctuation in supply or demand. However, the market outlook overall for the chips used in smartphones and emerging applications such as SSD remains favorable.

The sources predict that the NAND flash market will maintain an annual growth trend over the next 5-10 years, and sees Phison greatly benefiting from this.

The company supplies memory controller ICs as well as NAND flash devices and has revealed plans to step into the production of eMMC NAND flash devices.