NAND flash prices during the first quarter this year are expected to decline by 8% to 13% compared to the previous quarter, analyst firm TrendForce said.
The firm adjusted the price drops from its previous forecast of 10% to 15%.
TrendForce said this was from increased orders for PCIe 3.0 products and the lockdown in Xian, China __ where Samsung and Micron have memory chip plants.
This has caused buyers to be more willing to accept a narrower decline in contract prices to produce their chips sooner, the analyst firm said.
NAND flash prices will still go down as the Xian lockdown hasn’t affected local fabs’ production so much and mostly caused delays in delivery time, it added.
Meanwhile, prices of client SSDs will drop less than expected due to the lower-than-expected shipment of Intel’s Alder Lake CPUs, which supports PCIe 4.0, which has caused PC makers to increase their orders for PCIe 3.0 SSDs to meet their shipment target, the analyst firm said.
The lockdown in Xian has also caused these buyers to secure SSDs orders, another contributing factor to the drop rate being less than previously through, TrendForce said.
For NAND flashes used in smartphones, price drops are also expected to be lower as OEMs are holding on to a relatively high level of eMMC and UFS inventory, it said. Demand for smartphones was also slow, TrendForce said.