NAND Supply to Nosedive

Author: admin (73 Articles)

Even though Toshiba is claiming that there was no damage to its factories in Japan, it is still cutting NAND flash production by 50% for at least May and June.  They are having a hard time sourcing raw wafers and other materials because of the earthquake in Japan.  This is in addition to the previous estimated 30% reduction in NAND due to a one-two punch in the rise of demand and the earthquake.  Contract prices are already 15% since the earthquake.  Since Toshiba had about 40% of the pre- earthquake market share, there is going to be strong pressure on Samsung to pick up the slack, but they are already facing a losing battle.  It takes 3 months to produce a chip so even if Samsung started extra production immediately, there is going to be a gap of severe shortage.  Source your NAND shortages *here*