NAND Flash suppliers are taking steps to minimize losses and lower costs to return to profitability this year, with Kioxia and Western Digital leading the charge by boosting their capacity utilization rates to almost 90%.
- NAND Flash suppliers are taking steps to minimize losses and lower costs in order to return to profitability this year.
- Kioxia and Western Digital have been leading the charge by boosting their capacity utilization rates to almost 90%.
- The focus of production increase will be on 112-layer and select 2D products, which is expected to ensure profitability and contribute to a projected 10.9% rise in the annual NAND Flash industry supply bit growth rate for 2024.
According to a report from TrendForce, NAND Flash suppliers are taking steps to minimize losses and lower costs in order to return to profitability this year. Kioxia and Western Digital (WD) have been leading the charge since March by boosting their capacity utilization rates to almost 90%, a move that has not been widely adopted by their competitors.
TrendForce highlights that in order to meet the surge in demand expected in the second half of the year, especially considering the low inventory levels of Kioxia and Western Digital, the focus of production increase will be on 112-layer and select 2D products. This strategy is not only expected to ensure profitability within the year but also contribute to a projected 10.9% rise in the annual NAND Flash industry supply bit growth rate for 2024. Kioxia has set its sights on expanding its capacity to 218 layers by 2025, aiming to lead in high-stack technology.
In light of the rising NAND Flash prices in 2024 and a gradual reduction in suppliers’ stock levels, process upgrades have become crucial for maintaining cost competitiveness. Samsung and Micron are at the forefront of this effort, with their production of 200-layer and above products expected to exceed 40% by the end of the year.
While Kioxia and Western Digital will continue focusing on 112 layers in their production in 2024, Kioxia plans to commence equipment installation for increasing its 218-layer output in the latter half of the year. The company has a more aggressive outlook for 218-layer production in 2025. Furthermore, Kioxia’s strategy involves advancing directly to processes with 300 layers and above after reaching 218 layers, aiming to achieve a more favorable cost structure and regain technological and cost leadership.
However, it’s worth noting that the demand for NAND Flash may not meet expectations due to increasing prices and reduced procurement momentum following the rise in inventory levels of PC and smartphone buyers in the first quarter. Additionally, the demand from AI applications has not significantly driven capacity upgrades this year, and unless there is a significant increase in Enterprise SSD purchases, the overall demand for NAND Flash may fall short. As a result, TrendForce predicts that the rate of price increases for NAND Flash contracts will decrease to 10-15% in the second quarter and further drop to 0-5% in the third quarter.
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Background Information
About Kioxia:
Kioxia is a global leader in flash memory and solid-state drive (SSD) technology, originating from Toshiba Memory Corporation, which rebranded as Kioxia in 2019. Headquartered in Tokyo, Japan, Kioxia develops high-quality memory solutions, serving various markets including consumer electronics, data centers, and industrial applications. The company is known for pioneering NAND flash memory technology, focusing on innovation, data storage solutions, and sustainability.
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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 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 worldwide Latest 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
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