Phison Electronics has seen a strong rebound in NAND flash demand recently, and believes prices may have fallen to a level acceptable to its clients, according to company chairman Khein Seng Pau. Chip suppliers have also stepped up their efforts to control output, Pau said.

Pau previously warned that NAND flash prices would decline further in fourth-quarter 2010 or first-quarter 2011 if chipmakers did not properly manage their capacity and output.

Like LCD panels, NAND flash prices are affected by any fluctuation in supply or demand, Pau indicated. Overall, the market outlook for the chips used in smartphones and emerging applications such as SSD remains favorable, according to Pau.

Pau forecasts the NAND flash market will maintain an annual growth trend over the next 5-10 years, and sees Phison as a beneficiary.

Phison supplies memory controller ICs as well as NAND flash devices. The company has also revealed plans to step into the production of eMMC NAND flash devices.