The rising cost of building state-of-the-art memory chip factories is making manufacturers think twice about adding new capacity, increasing the likelihood of strong prices, the chief executive of SanDisk said.
Sanjay Mehrotra told analysts at a conference that even as demand grows for flash memory, used in smartphones, tablets and solid-state drives, chipmakers are adding little new capacity.
Following an industry slump in memory chip prices last year that hurt manufacturers, prices for memory chips have been strengthening in 2013.
“We are in for an extended period of stability with respect to flash fundamentals. This will then have an impact in terms of providing a favorable pricing environment for the flash industry,” Mehrotra said.
Mehrotra said memory chipmakers, which include Samsung Electronics and Micron Technology, will likely increase total NAND flash manufacturing capacity by around 7 percent this year. He said additions next year will remain moderate, partly because building cutting-edge production lines is becoming more expensive.
“The factors influencing the capacity additions certainly include considerations of greater capex required as well as concerns around ROI,” he said.
SanDisk makes NAND chips through a joint venture with Japan’s Toshiba, which on Wednesday forecast a 34 per cent increase in operating profit for this year, boosted by strong sales of flash memory chips.
Mehrotra repeated previous comments that SanDisk will add less new supply than average across the industry. Last month, SanDisk raised its forecast for revenue this year.
Shares of SanDisk were down 0.5 per cent at $55.15 on Wednesday.
Source-Times Of india
Related
Tags: A Value-for-money event , Academia india , Analysts and Business Intelligence Consultants india , Banking and Finance Analysts india , BJP 'accuses' Google India of helping terrorists , BJP decimated , Bluetooth & Wireless Technologies india , BPO & IT Companies india , Broadband & Web Hosting Technologies india , Business Strategies IT and ITES professionals india , CAG report cannot be gospel truth on any issue , CBI to quiz Bansal as speculation grows over his exit , Central and State Government Officials india , Computer Hardware & Components india , Computer Supplies & Stationary india , Converging Technologies india , Cruzer Force USB flash drive , CTOs IT Directors CXOs india , Database Management india , Decision Makers of SMEs and Large Corporates india , Department of School Education , Desktop/Workstation , devices business for Airtel , DigiSchool the flagship offering of HCL learning , DigiSchool was awarded the “Best Smart Classroom Solution Provider” , Domestic Users & Enterprise Users india , DVR Expander , End Users india , Enterprise Solutions india , Eric Whitaker senior vice president and chief legal officer SanDisk , Exhibitor's Profile india , Facebook in talks to buy start-up Waze: Report , Facility Heads india , Global meeting place for IT Professionals , Google remembers Saul Bass on his 93rd birth anniversary , Google's paid ads coming to smartphones , Government can now snoop on your SMSs , Government of Punjab and Elets Technomedia Pvt. Ltd , Great exposure to the target audience , HCL digital classroom learning solution , HCL education and learning division , HCL Infosystems honored with Shiksha Ratan Award , HCL Infosystems Ltd , HCL Learning , HCL Learning’s premium solution for classrooms , HCL Shiksha Ratan Award at the State Education Summit 2013 held in Chandigarh , http://wdc.com/en/products/products.aspx?id=610 , http://www.sandisk.in/ , India launches Rs 13000 crore IAF aircraft project involving private sector , Indian Corporate & MNC's , Indian Dealers & distributors , Indian System Integrators Computer Consultants india , Intel promises faster processors for tablets smartphones , International and Indian Media india , IP Solutions business of Thomson Reuters , IPL 2013 Final Match , IPL 2013 Final Match –who will win? , IPL 2013 Final Match ground name , IPL 2013 Final Match live watch , IPL 2013 Final Match team name , IPL 2013 Final Match ticket book , IT and Automation Architects india , IT expo in india Highlights , IT Security Solutions india , ITES/ BPO india , Kamasutra 3D app for smartphones , Karnataka election results 2013: Congress may get majority on its own , Lenovo bets on tablets , Manisha Sood Country Manager and Director India and SAARC SanDisk Corporation , Marketing & Financial Analysts india , Media Players , Melting point for buyers and sellers , Microsoft names Amy Hood new CFO , Microsoft: Tablet-compatible Windows Blue coming in 2013 , Mobile NAS Enterprise Solid State WD Highlights , More evidence of Apple launching cheaper iPhone , More evidence of Apple's cheaper iPhone , Multimedia Drive , Multimedia Technologies india , NAND flash drives , NAND memory chips , NAND memory chips in india , NAND memory chips price , NAND memory chips price in india , NAND prices 2013 , National Media Coverage , Networking Technologies & Products india , Nokia Asha 501 with 'free' Facebook access unveiled , Nokia working on biggest-ever Lumia phone: Report , NSA’s call to Chinese official for border affairs resolved Ladakh stand-off , online chats , Opportunity to directly inteact with end customers and channel partners , Portable Media Drive , Positive business development results , Reliance Jio finalises key pacts for LTE roll-out , retail stores across the globe , Samsung , Sandisk appoint distributor , SanDisk approximately 250 , SanDisk award , Sandisk award programme , SanDisk Card Readers , SanDisk CEO sees stability in NAND flash market , SanDisk channel event , SanDisk channel meet , Sandisk channel scheme , SanDisk Cloud Catcher , SanDisk CompactFlash Cards , Sandisk contact , SanDisk Corporation , Sandisk Cruzer Force USB Flash Drive , Sandisk Cruzer Force USB flash drive 10 GB , Sandisk Cruzer Force USB flash drive 11 GB , Sandisk Cruzer Force USB flash drive 12 GB , Sandisk Cruzer Force USB flash drive 13 GB , Sandisk Cruzer Force USB flash drive 14 GB , Sandisk Cruzer Force USB flash drive 15 GB , Sandisk Cruzer Force USB flash drive 16 GB , Sandisk Cruzer Force USB flash drive 17 GB , Sandisk Cruzer Force USB flash drive 18 GB , Sandisk Cruzer Force USB flash drive 19 GB , Sandisk Cruzer Force USB flash drive 20 GB , Sandisk Cruzer Force USB flash drive 2GB , Sandisk Cruzer Force USB flash drive 3GB , Sandisk Cruzer Force USB flash drive 4GB , Sandisk Cruzer Force USB flash drive 5GB , Sandisk Cruzer Force USB flash drive 6GB , Sandisk Cruzer Force USB flash drive 7GB , Sandisk Cruzer Force USB flash drive 8GB , Sandisk Cruzer Force USB flash drive 9GB , Sandisk Cruzer Force USB flash drive Combining fashion and function , Sandisk Cruzer Force USB flash drive durable metal casing , Sandisk Cruzer Force USB flash drive high performance USB flash drives , Sandisk Cruzer Force USB flash drive images , Sandisk Cruzer Force USB flash drive large portfolio of product lines , Sandisk Cruzer Force USB flash drive memory capacity , Sandisk Cruzer Force USB flash drive Our complete USB range , Sandisk Cruzer Force USB flash drive price , Sandisk Cruzer Force USB flash drive purchase online , Sandisk Cruzer Force USB flash drive share your files , Sandisk Cruzer Force USB flash drive smart digital lifestyle , Sandisk Cruzer Force USB flash drive storage capacity , Sandisk Cruzer Force USB flash drive stylish , Sandisk Cruzer Force USB flash drive to back up , Sandisk Cruzer Force USB flash drive transfer , Sandisk Cruzer Force USB flash drive warranty , Sandisk customer care helpline , Sandisk customer service , Sandisk dealer meet , SanDisk designed with a 360-degree swivel , Sandisk earnings , SanDisk Embedded Storage , SanDisk Enterprise Software , Sandisk event , SanDisk ExpressCache , SanDisk festive offer , SanDisk flash memory storage solutions , SanDisk FlashSoft Software , SanDisk Fortune 500 and S&P 500 company , Sandisk FY13 results , Sandisk FY14 forecast , SanDisk global leader in innovation and intellectual property , SanDisk global reach of the portfolio and patent influence , SanDisk gold scheme , SanDisk has again been recognized by Thomson Reuters , SanDisk has received the Thomson Reuters 2012 Top 100 Global Innovator Award , SanDisk honors corporations and institutions , SanDisk iNAND (e.MMC) , Sandisk india channel partner , SanDisk india channel scheme , Sandisk india dealer network , SanDisk india dealer scheme , SanDisk india national distributor , SanDisk introduced the Cruzer Force USB flash drive , SanDisk introduced the Cruzer Orbit USB flash drive , SanDisk is based on four principal criteria , SanDisk iSSD (SATA µSSD) , Sandisk latest channel scheme , Sandisk latest launch product , Sandisk latest news , SanDisk latest release product , Sandisk Launches Cruzer Force USB Flash Drive , SanDisk Launches Cruzer Orbit USB Flash Drive , SanDisk makes NAND chips , SanDisk makes NAND chips through a joint venture with Japan's Toshiba , Sandisk manisha , Sandisk manisha sood left , Sandisk Manisha sood resign , Sandisk map , SanDisk Membrain Software , SanDisk Memory Cards , SanDisk Memory Stick PRO Duo , SanDisk Memory Vault , SanDisk microSD Cards , sandisk NAND memory chips , sandisk NAND memory chips in india , Sandisk NAND prices , Sandisk national distributor , SanDisk new launch , Sandisk new mobile , Sandisk new pan drive , Sandisk new tablet , Sandisk office location , Sandisk office on google earth , SanDisk one of the most innovative companies in the world , SanDisk overall patent volume , Sandisk partner offer and scheme , SanDisk patent grant success rate , SanDisk PCIe SSAs , Sandisk Presented With Thomson Reuters 2012 Top 100 Global Innovator Award , SanDisk press release , SanDisk press room , SanDisk product and image gallery , SanDisk product image and gallery , Sandisk product line , Sandisk product price , SanDisk product price list , Sandisk product warranty , SanDisk raises forecast over higher NAND prices , SanDisk regional distributor , Sandisk revenue , SanDisk road show , Sandisk road show in india , SanDisk SanDisk Media Manager , SanDisk SanDisk Memory Zone , SanDisk SanDisk SecureAccess , SanDisk SAS SSDs , SanDisk SATA SSDs , SanDisk SD Cards , Sandisk service , SanDisk Software & Services , SanDisk Solid State Drives , SanDisk special offer for channel partner , SanDisk Thomson Reuters 2012 Top 100 Global Innovator Award , Sandisk toll free no , sandisk USB flash drive ultra-thin Cruzer Force USB flash drive , SanDisk USB Flash Drives , SanDisk USB Storage , SanDisk versatile and stylish USB flash drive , SanDisk videos , SanDisk youtube video , SanDisk’s inventions , Sanjay Dutt feels betrayed by Bollywood , Sanjay Mehrotra Sandisk , Sarva Shiksha Abhiyan , Shares of SanDisk were down 0.5 per cent at $55.15 on Wednesday , shikhar dhawan , shikhar dhawan daughters pics , shikhar dhawan marriage pics , shikhar dhawan wife hot pics , shikhar dhawan wife pics , Shiksha Ratan Award , Shiksha Ratan Award at Chandigarh , Shiksha Ratan Award price , Shiksha Ratan Award to HCL , Shiksha Ratna Awards summit , Smart Cards india , SMARTPHONES , smartphones drive German IT market higher , Smartphones in india , Solution Providers & System Integrators india , Sony posts first profit in 5 years , Spam traffic grows in Q1 2013: Study , System Software & Applications india , Tablets , tablets launched , Telecom Equipments india , Thomson Reuters 2012 , Top 100 Global Innovator methodology , Toshiba , UP seeks SC permission for beautification of Taj Mahal , US Immigration bill to harm Indian IT companies , Visitor's Profile , WD Accessories , WD and SanDisk to bring innovative solid state hybrid drives , WD Case , WD Data , WD Features , WD Guardian , WD Protection , WD Reviews and Awards , WD SelectWD SMB , WD Services , WD Specifications , WD Studies , WD Support , WD® and SanDisk Team Up to Create Innovative Solid State Hybrid Drives , Well-planned and well-executed event ever witnessed , Western Digital (WD) , Western Digital (WD) channel meet , Western Digital (WD) channel offer and scheme , Western Digital (WD) event , Western Digital (WD) india , Western Digital (WD) india dealer network , Western Digital (WD) india distributor , Western Digital (WD) india vendor , Western Digital (WD) partner meet , What is forcing IT professionals to cut spending , which team will win in 2013 IPL , who will win IPL 2013 , Why Microsoft is not launching Surface tabs in India , Why Microsoft Surface is not launching in India , Witnessing latest technology innovations , World's largest IT training centre opens in India
Continue Reading