The price of NAND memory will rise 40% in 2020

Every time we start a new year, it seems that the news of rising prices of products are always the protagonists. In this case it was the turn of products based on NAND Flash memory, such as solid state devices (SSD), and as indicated in the report, they will not go up a bit precisely, since the 40% increase in price means that, for example, a SSD of 100 Euros will cost up to 140 euros.

The reasons for the price increase of the NAND

According to the source, many manufacturers are reporting this situation, including SK Hynix, Micron and Samsung, the top three. The reason is not only the problem in a Samsung factory that took place last day 31 (although of course it will also have to do), but it seems that everyone is having problems in their production lines for lack of raw materials. In other words, although their production capacity is at full capacity, but they have the raw materials with which to manufacture, they will not be able to do so.

And of course, if they cannot meet the expectations of the level of production they had, they will enter a phase called "product shortage", and will assume that prices will rise to, selling less, earn the same money. And, as always, who will pay the situation (literally) will be consumers, since we will see the price of the products increased, in this case those based on NAND memory.

The situation is curious, because just over six months ago the news came that the production of this type of chips was shot in China, which was supposed to assume that we would see the products go down in price since they would have overstocked. And how are things, now it turns out that we are right in the opposite situation, which has meant that many claim that it is a strategy of the main companies to not have to lower prices (remember: the idea is to sell less but earn the same or more).

Finally, we must remember the fact that all major manufacturers (Samsung, SK Hynix, Toshiba (WD), Micron (Intel) and even the Chinese YMTC) are planning to start marketing 128-layer NAND Flash memory just this year.

We will therefore see how this supposed situation affects the market. For now, the price of SSDs remains as it has been until now, so if the forecast is that it triggers with an increase of up to 40%, it may be a good time to buy an SSD just now if we anticipate that we will need it during the year.