According to relevant reports cited by Taiwan media, the price of NOR Flash will increase by 5% in a single quarter in the first half of next year. However, some manufacturers in the industry have revealed that the increase will be higher than 5% and may reach 10%.
Regarding the reasons for the price increase of NOR Flash, the report pointed out that the first is the expansion of the TWS earbuds market, and the increase in OLED screen smartphones drives the demand for NOR Flash chips. Secondly, the strong demand from SMIC’s logic chip customers has resulted in insufficient NOR Flash production capacity, and the market has begun to appear in short supply.
The report pointed out that since the new generation of TWS headsets support Bluetooth 5.0 and active noise reduction, each headset needs to use a NOR Flash chip. As the demand for TWS headsets rises and more and more smartphones use OLED displays, the demand for NOR Flash has increased dramatically since the beginning of this year. However, the production capacity of NOR Flash has not increased. Therefore, in the third quarter of this year, there has been a shortage of supply, and the price has increased since the fourth quarter.