NAND Flash Industry Revenue Up 2.9% in 3Q23, Projected to Soar 20% in Q4


December 5, 2023 by our News Team

Samsung's strategic decision to reduce production in the third quarter of 2023 caused a ripple effect in the NAND Flash market, leading to a stabilization and even an uptick in contract prices and revenue for key players, including SK Group and WDC.

  • Stabilization and uptick in NAND Flash contract prices
  • 3% quarter-on-quarter increase in bit shipments
  • Optimism for a vibrant market in the fourth quarter


In a recent report by TrendForce, the NAND Flash market experienced a significant shift in the third quarter of 2023. This shift was primarily driven by Samsung’s strategic decision to reduce production, which had a ripple effect on the market as a whole.

Initially, there was uncertainty surrounding end-user demand and concerns about a subdued peak season. This led buyers to adopt a conservative approach with low inventory and slow procurement. However, as market leaders like Samsung implemented substantial production cuts, buyer attitudes shifted towards a more aggressive procurement strategy. They anticipated a decrease in market supply and wanted to secure their own supply chains.

This change in buyer behavior resulted in a stabilization and even an uptick in NAND Flash contract prices by the end of the quarter. As a result, there was a 3% quarter-on-quarter increase in bit shipments and a total revenue of approximately US$9.229 billion, representing a 2.9% increase.

While Samsung maintained its robust performance, Kioxia and Micron experienced a dip in revenue rankings for the quarter. Samsung’s fortunes rebounded thanks to a boost in consumer electronics, particularly high-capacity products in PCs and smartphones. This strategic inventory replenishment and shift in operational focus towards maximizing profit led to a minor decrease in shipped bits but an increase in average selling price (ASP). Overall, Samsung’s Q3 NAND Flash revenue stabilized at US$2.9 billion.

Kioxia saw a 3% increase in ASP due to rebounding wafer contract prices and early strategic stockpiling by laptop clients. However, a delay in orders from American smartphone brands resulted in a 10-15% decrease in shipped bits. This caused a dip in NAND Flash revenue to US$1.34 billion, marking an 8.6% decline quarter-on-quarter.

Micron, on the other hand, experienced steady orders from the PC and mobile sectors and inventory restocking by some enterprise SSD clients. Despite maintaining bit shipments from the previous quarter, a 15% drop in ASP led to a slight slip in revenue to US$1.15 billion, a 5.2% decrease quarter-on-quarter. However, the forecast for Q4 is more promising, with a comprehensive rebound in contract prices and a surge in order growth driven by price hikes. This sets Micron up for over 20% revenue growth quarter-on-quarter.

Other industry giants like SK Group (SK hynix & Solidigm) and WDC also capitalized on the renewed demand in consumer electronics. SK Group experienced a steady increase in bit shipments, driven by renewed demand for high-capacity products in the PC and smartphone arenas. This catapulted their Q3 NAND Flash revenue to US$1.86 billion, an 11.9% uptick. WDC had a similar success story, with Q3 PC demand surpassing forecasts and resilient demand in the mobile and gaming categories. This led to an effective price-driven increase in bit shipments and a significant 13% climb in QoQ NAND Flash revenue to US$1.556 billion.

Overall, the NAND Flash market experienced a pivotal shift in the third quarter of 2023, with Samsung’s production cuts influencing buyer behavior and ultimately impacting contract prices and revenue for key players in the industry. As we move into the fourth quarter, there is optimism for a vibrant scenario with a comprehensive rebound in contract prices and increased order growth driven by price hikes.

NAND Flash Industry Revenue Up 2.9% in 3Q23, Projected to Soar 20% in Q4

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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.

Samsung website  Samsung LinkedIn

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.

SK hynix website  SK hynix LinkedIn

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.


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





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