According to the DRAMeXchange survey, the contract price of various types of NAND Flash products in the first quarter of 2019 fell by nearly 20%, which was the biggest decline since NAND Flash turned into oversupply in early 2018.

However, looking forward to the second quarter, DRAMeXchange said that after the first quarter of low demand, the main demand for smartphones, notebooks and servers has improved compared with the first quarter. On the other hand, NAND Flash suppliers have suppressed the capital expenditure, slowed down the proportion of new process output, and even suppressed output by reducing production. Although it is unable to immediately reverse the oversupply situation, it has an impact on the market environment.

In addition, as prices gradually approach the cost line, the space for price declines becomes limited, and as the factory yield increases, the number of defective products in the market decreases. In summary, it is expected that the decline in the contract price of Nand Flash in the second quarter will slow down.