NAND Flash Industry Revenue Surges 24.5% in Q4 2023, Poised for 20% Boost in Q1

The NAND Flash industry experienced a 24.5% quarter-on-quarter increase in revenue, reaching $11.49 billion in Q4 2023, driven by stabilized end-demand, component market orders, and strategic stockpiling.

1. 24.5% quarter-on-quarter increase in revenue 2. Positive outlook for 2024 demand 3. Significant growth in bit shipments and revenue for Samsung and SK Group

According to TrendForce, the NAND Flash industry experienced a remarkable 24.5% quarter-on-quarter increase in revenue, reaching an impressive $11.49 billion in the fourth quarter of 2023. This surge can be attributed to a stabilization in end-demand, driven by year-end promotions, as well as an expansion in component market orders fueled by price chasing. As a result, there was a significant boost in bit shipments compared to the same period last year. Additionally, the corporate sector’s positive outlook for 2024 demand, along with strategic stockpiling, further contributed to this growth.

Looking ahead to the first quarter of 2024, despite traditionally being an off-season, the NAND Flash industry is expected to continue its revenue growth with another 20% increase. This anticipation is supported by substantial improvements in supply chain inventory levels and ongoing price rises. Clients are increasing their orders to mitigate potential supply shortages and rising costs. As a result, the expansion of order sizes is predicted to drive NAND Flash contract prices up by an average of 25%.

Samsung took center stage in the fourth quarter, experiencing significant growth due to a sharp rise in demand across servers, notebooks, and smartphones. Despite not fully meeting customer orders, Samsung’s bit shipment volume surged by 35% quarter-on-quarter, accompanied by a 12% increase in average selling price (ASP). This propelled Samsung’s revenue to $4.2 billion, marking an impressive 44.8% quarter-on-quarter growth. SK Group followed closely behind Samsung, enjoying a revenue jump of 33.1% to $2.48 billion, thanks to notable price recoveries.

Western Digital witnessed a slight 2% dip in shipment volume but managed to achieve a 10% increase in ASP. This led to a 7% revenue increase for its NAND Flash division, reaching $1.67 billion. The retail SSD market experienced a significant boost in shipments due to a price rebound, resulting in inventory levels dropping to a four-year low. Kioxia, benefiting from PC and smartphone client orders, reported modest shipment growth and an 8% revenue increase to $1.44 billion in the fourth quarter.

In 2023, the industry faced a severe oversupply situation, leading to nearly a 10% price increase in the fourth quarter. However, Micron took measures to improve profitability by significantly reducing its supply. This resulted in a more than 10% quarter-on-quarter decrease in bit shipments and a 1.1% decrease in revenue, reaching $1.14 billion. Micron also anticipates a 15-20% annual increase in NAND Flash demand bit growth for the year, emphasizing the importance of ongoing capacity adjustments to achieve a balance between supply and demand for potential profitability in the industry.

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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.

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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

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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.

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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