The global NAND Flash industry will see an annual increase of just 6% in its total wafer capacity in 2017, according to analysis by DRAMeXchange, a division of TrendForce.

DRAMeXchange noted, as the pace of the industry-wide transition to 3D-NAND architecture accelerates, supply of 2D-NAND memory will drop sharply, leading to shortages next year. Furthermore, many suppliers are still working on the mass production of 3D-NAND memory. Until the industry in general is able to apply 64-layer 3D-NAND solutions to OEM storage products, the market supply for 3D-NAND memory will remain tight. In the meantime, NAND Flash prices will continue to go up and boost suppliers’ revenues.