Demand in the global memory market NAND Flash exceeds the offer already for six consecutive quarters, from the third quarter of 2016, according to DRAMeXchange, the research division of the analytical company TrendForce. However, experts predict that in 2018 the situation will stabilize, and the industry will establish a balance sheet.

The need for NAND Flash chips has outstripped supply due to the increase in average flash memory in smartphones and other electronics and high demand from server manufacturers. At the same time chipmakers experienced difficulties with the transition to the release of 3D NAND, the next generation of flash memory chips. Migration to more modern technology was slower than expected.

Analysts believe that in the first quarter of 2018, against the backdrop of the usual seasonal decline in sales of smartphones, tablets and PCs, the demand for NAND Flash will take hold, and deliveries will outpace the market needs.

In the future, the balance of supply and demand will have to level off. According to DRAMeXchange, in the whole next year the deliveries of flash memory chips in bits will increase by 42.9%, while the demand for these chips will increase by 37.7%.

It is also expected that due to the efforts of SK Hynix, Toshiba and Micron, competing with the leader of the Samsung industry, the share of 3D NAND products in the total amount of flash memory supplies will increase from the current 50% to more than 70%.