Micron CEO Mark Durcan predicts NAND memory prices will increase by 2013 as industry production cuts offset slow European and US economies, reducing the current supply glut.
In an interview with Reuters Durcan says "I'm quite optimistic the first half of next year can be significantly stronger for NAND... it's tougher to know in the short term."
The current NAND oversupply (partly due to surging mobile device sales) has caused prices to drop heavily, causing losses for memory vendors such as Micron. Rising investment costs (in new technologies) also drive further consolidation-- such as Micron's recent purchase, Elpida.
Demand for commodity DRAM chips for PC use is also under pressure due to falling global PC shipments. According to analysts, NAND prices have already dropped by 35-40% in 2012.
Durcan also mentions the Elpida purchase, saying Micron still has to decide whether to convert Elpida factory lines to NAND or other kinds of memory. The company still waits waits for the completion of the deal, which should take place by H1 2013.