Phison's NAND control chip price increases for the first time in eight years

The shortage of foundry products extends to NAND Flash control ICs. Recently, the market has reported that Phison has officially raised the quotation of NAND Flash control IC products by up to 20%, marking the first price increase in the past eight years.
 
Regarding the control IC price increase, TrendForce pointed out that the upstream TSMC and UMC foundry factories are fully loaded with related production capacity, and the shortage of IC substrates has caused the delivery time to be extended. At the same time, the downstream packaging and testing capacity is in short supply, leading to the shortage Many NAND Flash control IC manufacturers such as Huirong and Huirong were unable to respond to customers' increasing orders.
 
Currently, the control IC factory has suspended quotations for new orders. As it is in the critical period of price negotiation in the first quarter of 2021, manufacturers plan to increase prices. TrendForce Consulting estimates that the increase will range from 15 to 20%.
 
Phison stated that in order to cope with the increase in quotation costs such as foundry and packaging and testing, NAND Flash control IC prices will be increased in the fourth quarter of 2020. The price increase varies according to different products, with the highest price increase Up to 20%.