Phison CEO Pan Jiancheng: The price of NAND flash memory has fallen below the cost

Pan Jiancheng, CEO of flash memory control chip provider Phison, said that the market price of NAND flash memory has been lower than the cash cost, which indicates that the market price is not far from bottoming out.

Pan Jiancheng said that it is foreseeable that the price of NAND flash memory will soon reach the lowest point and can only rise in the future. At the same time, however, it also means that demand has fallen sharply recently, putting manufacturers at risk. They are now either selling at low prices to cover at least part of the cost or accepting the loss of inventory.

TrendForce recently released a report saying that NAND flash memory is currently in oversupply. Since the second half of the year, buyers will focus on destocking and greatly reduce purchases. Sellers will set a breaking price to consolidate orders. The price of wafers fell by 30%-35%, but various NAND Flash terminal products are still weak, and the original factory inventory has risen rapidly, resulting in a 15%-20% decline in NAND Flash prices in the fourth quarter.

Pan Jiancheng believes that the situation in the storage market should recover soon, and the worst effects of inflation and other macroeconomic issues will end in the foreseeable future. However, it is still beneficial for consumers to buy products at lower prices in a short period of time.

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