In Q2, the NAND Flash market faced a supply-demand imbalance, resulting in a 10-15% drop in ASP and a 1-3% decline in revenue for Samsung and Kioxia, while Micron, SK Group, and Western Digital experienced growth due to reduced inventories and increased storage capacities.
- Bit shipments increased by 19.9% compared to the previous quarter.
- Micron had an exceptional Q2, surpassing its competitors with a 27.6% increase in revenue.
- SK Group and Western Digital both experienced revenue growth in Q2.
The NAND Flash market faced some challenges in Q2, according to TrendForce’s latest research. Demand remained lackluster while supply outpaced it, resulting in a 10-15% drop in the average selling price (ASP) of NAND Flash. However, there was a glimmer of hope as bit shipments increased by 19.9% compared to the previous quarter. Overall, the NAND Flash sector saw a 7.4% growth in revenue, reaching $9.338 billion.
Samsung took steps to rein in production in Q2, and further reductions are expected in the third quarter. This tightening of supply could lead to price hikes, potentially addressing the supply-demand imbalance. However, with many players in the NAND Flash sector facing high inventories, aggressive sales are likely to continue into Q3. Forecasts suggest that the decline in ASP for NAND Flash products will slow down to 5-10% in Q3. Additionally, bit shipments are expected to rise during the high season, driving Q3 revenue growth above 3%.
Micron had an exceptional Q2, surpassing its competitors with a 27.6% increase in revenue, totaling $1.21 billion. This growth was primarily driven by reduced inventories in the PC and mobile markets, especially as client SSDs benefited from larger storage capacities. Micron is focused on achieving a more balanced supply-demand scenario in the second half of 2023. However, the NAND Flash industry’s recovery is still hindered by high inventory levels throughout the year.
SK Group (SK hynix & Solidigm) and Western Digital both experienced revenue growth in Q2 due to declining SSD inventories and increased storage capacities in consumer electronics devices. SK Group’s performance was particularly impressive, with a quarterly jump of approximately 26.6%, while Western Digital enjoyed a 5.4% increase.
On the other hand, Samsung and Kioxia faced challenges in Q2, as they were the only players to experience a decline in revenue. The growth in bit shipments was overshadowed by the fall in ASP. Samsung’s revenue dropped by 1% to around $29 billion, while Kioxia saw a 1.3% contraction to $18.3 billion.
Despite the buzz around AI servers, it is the general-purpose server segment that has the most impact on NAND demand, leaving NAND Flash revenues unaffected by the AI boom. This contributed to the difficulties faced by Samsung and Kioxia in Q2.
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Background Information
About Samsung:
Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.Latest Articles about Samsung
About SK hynix:
SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.Latest Articles about SK hynix
About Western Digital:
Western Digital, established in 1970, is a important data storage solutions provider known for its wide range of hard drives and solid-state drives. Catering to various applications, from personal computers to enterprise storage systems, Western Digital emphasizes data management and security. With a reputation for reliability and innovative solutions, the company has been pivotal in shaping the storage industry. Their products are trusted by individuals, businesses, and data centers worldwideLatest Articles about Western Digital
Technology Explained
NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.
Latest Articles about NAND
SSD: A Solid State Drive (SSD) is a modern data storage device that employs flash memory technology to store data electronically. Unlike traditional hard disk drives (HDDs), SSDs have no moving parts, resulting in significantly faster read and write speeds. This leads to quicker boot times, faster application loading, and smoother overall system performance. SSDs are known for their durability, shock resistance, and energy efficiency, making them ideal for laptops, ultrabooks, and other portable devices. They come in various form factors, including 2.5-inch, M.2, and PCIe cards, and are favored for their reliability, quiet operation, and reduced heat generation
Latest Articles about SSD
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