Industry: NAND flash memory production will rapidly shrink Q2 in short supply from April onwards

Zhang Jiaxiang, president of memory module manufacturer of Yuzhan Technology, said on the 1st that NAND flash memory will begin to be in short supply in the second quarter because suppliers are cautious about capacity expansion and the joint venture factory of Mailer and Western Digital in Japan has significantly reduced production due to raw material pollution.

According to reports, Mr Zhang expects total NAND flash chip production to shrink rapidly from April, causing supply to outstrip demand in the second quarter, with total bit supply expected to grow by 25-30 per cent in 2022, down from the previous forecast of 30 per cent.

At the same time, the inventory of NAND flash chips held by downstream equipment assemblers and suppliers is at a level that suits their needs, as downstream manufacturers want to mitigate the impact of inventory imbalances between different chip types.

Zhang Jiaxiang estimates that the price of NAND flash memory will face downward pressure in the first half of 2022. As the shortage of logical IC alleviates, downstream device assemblers and suppliers are expected to accelerate inventory accumulation in the second half of the year.