Affected by the contamination of the raw materials of the 3D NAND Flash factories of Kioxia and Viteng, the supply gap of NAND Flash in the second quarter is expected to be difficult to understand. Yang outside, the rally is also expected to be quite strong.
The production capacity of Viteng and Kioxia’s two factories in Yokkaichi and Kitakami, Japan are affected by raw material pollution. Since they are the world’s fourth and second largest NAND chip factories respectively, after the news of raw material pollution in the factory area came out, the market was initially estimated to be 6.5EB The output of bit NAND chips will be affected, which will push up NAND quotations ahead of the decline.
Apacer (8271-TW) pointed out that the contamination of the output is mainly on the etching materials, which led to the scrapping of the entire batch of wafers. From the perspective of production process and defects, the output of the affected NAND wafers exceeded the original expectation of 6.5EB, and there was basically no output since April. Things can be produced, or only in small amounts.
Apacer believes that from the known information, this incident has brought considerable seriousness to the supply of the industry. Even if I don’t feel it now, the price will start to rise from March. With the arrival of the peak demand season in the third quarter, it will cheer the second Quarterly price increases, NAND will face shortages in the first half of the year.
Phison (8299-TW) also believes that the impact of this incident is very serious, and the market demand for NAND Flash is already very strong.
After Wei Teng sent a letter to customers to raise prices, Micron also reported that NAND contracts and spot prices both rose, with contract prices up 17-18% and spot prices exceeding 25%. The market is optimistic, as the shortage situation is generally established, the price increase in the second quarter is expected to be stronger than previously expected.
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