15 Dec 2020 -

NOR flash price likely to rise 5% in 1H21 and shortages predicted

asian engneer

NOR flash chips supply is expected to fall short of demand by 5% in 2021, and their quotes are estimated to rise 5% in the next two quarters amid overall inventory level falling significantly, according to a report in DigiTimes.

Insiders have commented on the two main reasons for the shortage: the first is the expansion of the TWS earbuds market, and the increase in OLED screen smartphones drives the demand for NOR Flash chips; second, 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.

They 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.

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