Stabilizing Flash Memory Prices To The Rescue (SNDK, MU, ISSI, CODE)

Flash memory makers might not be going gangbusters on raw memory pricing power this fall, but the good news is that the price declines from earlier have abated and prices to have stabilized.  A report on Monday from DRAMeXchange noted that demand did not warm for this year’s second-half peak season inventory replenishment until September.

The report showed that “renewed demand from both new smartphone and ultrabook models and preparation for the holiday season is likely to continue until early November.”  As a result, NAND flash average contract price the first half of October witnessed both slight increases and decreases but should stay stable overall for the month of October “due to continued support from year-end restocking demand.”  The report also showed that demand from certain system clients’ OEM orders was better than that from the memory card and UFD retail channel market. 

On a longer-term basis, DRAMeXchange noted that the 2xnm-node process will become the mainstream process for NAND flash suppliers in the fourth quarter of 2011 with a portion of suppliers introducing new 2ynm-node products starting in November.

So far the news is not having much impact on shares around Flash (nor around DRAM) and these stocks look soft ahead of the opening bell.  SanDisk Corporation (NASDAQ: SNDK) is down just under 0.5% at $46.62 in the pre-market.  Micron Technology Inc. (NASDAQ: MU) is down 0.4% at $5.68.  No trading volume has been seen yet in shares of Integrated Silicon Solution Inc. (NASDAQ: ISSI) nor in Spansion Inc. (NYSE: CODE).

JON C. OGG