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SSD prices set to spike in Q3 due to tight supply and increased demand

Solid state drive (SSD) prices could rise over the next several months, according to a report from Taiwan predicting a "continued tight supply of NAND flash memory" that will "push up chip prices further in the third quarter."

Demand for mobile DRAM, as well as for embedded eMMC and eMCP embedded NAND flash solutions, will continue to outstrip supply through the third quarter of 2013, DigiTimes cited unnamed industry sources as saying.

The tech site indicated that increasing demand for NAND flash memory for SSD storage by makers of servers and other datacentre equipment was a factor in the reported supply constraints.

Flash memory is exclusively used in smartphones and other consumer-oriented mobile devices, but in recent years, SSDs and hybrid disk drives have begun to displace mechanical hard disk drives (HDDs) in an increasing number of client PCs, commercial workstations, and volume server and storage products.

"Recently more system manufacturers have been gearing up their cloud computing efforts, stepping up the pace of NAND flash procurement for an anticipated huge demand for SSDs for use in servers and workstations," DigiTimes' sources reportedly said.

The tech site noted that NAND flash contract prices have been edging upwards since last month, while also reporting last week that Toshiba is rumoured to be expanding its NAND flash production in Japan.

In addition to Toshiba, major global manufacturers of NAND flash for SSDs include Intel, Micron, Samsung, SanDisk, and SK Hynix. Taiwan-based SSD controller manufacturers include JMicron, Phison, and SiliconMotion.