To: da_cheif™ who wrote (8679 ) 1/5/2021 11:54:52 AM From: Kirk © Respond to of 26450 SIMO News: Higher chip prices... start of inflationChina NAND flash controller supplier raises prices by 50% Siu Han, Taipei; Jessie Shen, DIGITIMES Tuesday 5 January 2021 digitimes.com China's Yeestor Microelectronics has raised prices for its flash memory controllers for embedded storage applications by as much as 50%, according to market sources. The price rally, starting in January 2021, is to reflect rising manufacturing costs resulting from tight capacity at 8-inch foundries, the sources indicated. Nevertheless, Yeestor has not changed prices of products for SSD vendors, the sources said. Phison Electronics already raised its flash memory controller prices by 15-20% in the fourth quarter of 2020, the first upward adjustment in eight years, the sources noted. The Taiwan-based company is considering raising quotes for the second quarter to respond to rising production costs, which may encourage its rivals to follow suit, the sources said. Fellow flash memory controller suppliers are still taking a wait-and-see attitude about raising quotes, the sources continued. The supply of flash device controllers has fallen short of demand, despite oversupply and falling prices of NAND flash chips.Silicon Motion Technology has said it currently has no plans to raise prices, despite tight foundry capacity. Flash controller chips for use in SD, UFD, SATA and eMMC storage devices are built using mainly 55nm and 40nm process technologies, said the sources. TSMC has seen its 55nm and 40nm process capacity become tight, while chips demanding SMIC's 40nm fabrication services have suffered serious shortages, the sources said.On another front, despite rising flash memory controller prices, SSD prices continue to trend downward, the sources indicated. NAND flash chip prices are also set to fall further this year due to chipmakers ramping up their new-generation 3D NAND chip output, the sources said.