Storage Flash memory (NAND Flash), DRAM quotes after the rally, coded Flash memory (NOR Flash) benefited from inventory replenishment, especially each AI terminal device equipped with NOR Flash capacity to several times explosive growth, leading NOR Flash rod to start a new wave of memory price increases. It is expected to rise by 5% at first next month, and by 10% in the second quarter of next year, and Taiwan factories such as Huabang and Wanghong will benefit greatly.

This is the NOR Flash market downturn after more than a year, once again ushered in the dawn, reflecting the smart phone market demand warming, AI PC driven replacement tide, and the future AI edge device demand brought by the successful ignition of the tide of goods.

According to industry analysis, after Huabang, Wanghong, and Mainland Zhaoyi Innovation and other NOR Flash suppliers gradually started to reduce production at the end of last year, they effectively reduced the market inventory, and the industry inventory water level averaged about three to four weeks before. In the near term, the terminal demand return temperature triggered the pull effect, the OEM and system factory inventory quickly fell to only about two weeks, and the replenishment of inventory is imminent, and the increase in demand and the decrease in supply have pushed up this wave NOR Flash quotation.

The industry pointed out that because Oems and system factories are expected to start pulling goods and replenishing inventory in the traditional off-season in the first quarter of next year, there will be a trend in the off-season NOR Flash market next year, and driven by stronger demand, NOR Flash prices will rise by 5%. As market demand continues to recover, the price increase in the second quarter of next year continues, and the increase is expected to expand to 10%.

It is understood that when the AI wave comes to see the increase in computing demand, the amount of NOR Flash has also grown significantly, mainly because NOR Flash has the characteristics of saving data when the power is off, so that the amount of each device with NOR Flash has increased from 64Mb, a multiple of 256Mb, driving the NOR Flash market significantly.

In addition, entering 2024, both smart phones and PCS are expected to begin to set off a tide of specification upgrades, in addition to responding to AI, OLED penetration continues to increase, which is also a market trend, and also increases the capacity of NOR Flash. Under the higher computational complexity of automotive products, the demand for NOR Flash is expected to grow by two to three times, which is a great boon for NOR Flash factories.