NAND flash prices likely to rise in Q2

TAIPEI: According to the Khein Seng Pua, chairman of memory device controller IC design house Phison Electronics, there is a small possibility that NAND flash prices would increase in the second quarter, although a price meeting might take place in the third quarter on a warming up of demand from the consumer electronics and Smartphone sectors.

Pua said NAND flash prices are anticipated to increase considerably in the third quarter, when system OEMs start to replenish stock.

Pua indicated, latest Apple products and Smartphones would still remain the key drivers for the NAND flash market in the year 2010. He believes main chip suppliers' development to 20nm-class processes will facilitate to push the acceptance of solid-state drives (SSD).

According to Pua, Phison also supplies the complete device with monthly shipments currently reaching 2,000-3,000 units. He also said revenues generated from SSD products will begin bringing in a solid involvement to the company's revenues in the third quarter of the year 2010.

During the first quarter of 2010, Phison has posted revenues of NT$7.985 billion (US$255 million). Shipments of its memory-device controller chips in addition hit a company record of 110 million units in the quarter.

On the other hand, Phison saw net profits for the first quarter fall 42 p.c on quarter to NT$419 million. Its first-quarter gross margin was 10.06 p.c, compared to 15.55 p.c posted in the fourth quarter of the year 2009.