Kingston Technology, a strong NAND-flash memory maker, is reportedly planning to cut prices for all of its NAND-flash products; possibly by as much as 15%. This would include USB drives, memory modules, and its SSD products according to a Digitimes story.
Kingston indicates that the anticipated price adjustments are coordinated with chips suppliers’ moving to more advanced process technologies that will help fuel production growth in these technologies.
Kingston has not yet confirmed the exact rates of its upcoming price reductions, but it has stated a goal for 2012 of growing their presence in the NAND flash market arena. Kingston’s strategy of adjusting its prices is expected to stimulate other NAND flash device companies and memory module manufacturers to also reduce prices; or risk losing market share.
Most major NAND flash chip manufacturers have been transitioning to newer 2Xnm and/or 19nm process technologies. This will result in ramping-up of capacities; as these more advanced processes permit more chips to be produced on individual wafers. End market demand, however, is less than anticipated so far in 2012. This could raise concerns of oversupply, which should also keep downward pressure on prices.
Is this another thunder rumble in the “perfect storm” of circumstances making 2012 a banner year for SSD sales? It is definitely one more step to shrinking the gap in the cost per GB difference between HDDs and SSDs!