Taiwan-based memory module makers have had mixed responses to a recent Semiconductor Reporter article quoting Chang-Gyu Hwang, president of Samsung Electronics’ Memory Division, Device Solution Network as saying that he expects NAND flash prices to fall 40% every year due to maturing process technologies.

NAND flash prices may not fall as dramatically as Samsung predicted this year, said Simon Chen, chairman of A-Data Technology, as NAND flash demand will be stimulated in the second half of this year thanks to rising demand for small-size memory cards. Chen indicated earlier that demand for NAND flash for mobile storage products will grow 21% this year.

Taiwan-based memory module makers have had mixed responses to a recent Semiconductor Reporter article quoting Chang-Gyu Hwang, president of Samsung Electronics’ Memory Division, Device Solution Network as saying that he expects NAND flash prices to fall 40% every year due to maturing process technologies.

NAND flash prices may not fall as dramatically as Samsung predicted this year, said Simon Chen, chairman of A-Data Technology, as NAND flash demand will be stimulated in the second half of this year thanks to rising demand for small-size memory cards. Chen indicated earlier that demand for NAND flash for mobile storage products will grow 21% this year.

While admitting that prices for higher-priced 4Gbit and 5Gbit NAND flash products may fall more significantly, Chen said it is not likely that prices for lower density NAND flash products will fall as much as 40%.

However, other module makers were more pessimistic about the NAND flash market, as the inventory levels at makers of MP3 players is currently too high, they stated. Some makers even predicted that NAND flash prices may fall 40% as early as this quarter.

To stay cost-competitive, Samsung has already begun producing 4Gbit NAND flash chips using 70nm process technology, with volume production to commence in July. According to DRAM module makers, Samsung will also volume produce its new 8Gbit multi-level cell (MLC) NAND flash memory this quarter.