NAND flash market turnaround: Revenue surged 25% in Q4 2023

[Shawn Knight]

In a nutshell: The NAND flash industry was able to reverse its fortunes in the fourth quarter of 2023, and grow revenue by nearly 25 percent quarter over quarter. The latest data from TrendForce highlights a substantial 24.5 percent QoQ increase in NAND flash industry revenue to $11.49 billion.

The research firm said the growth was the result of stabilization in end user demand driven by year-end promotions "along with an expansion in component market orders driven by price chasing, leading to robust bit shipments compared to the same period last year." Production cuts in the second half of 2023 no doubt contributed to the turnaround as well, lowering operating costs while helping to correct inventory issues.

The situation is only expected to improve for industry players in the near term. TrendForce said it expects to see revenue increase by another 20 percent in the first quarter of this year, fueled by improved supply chain inventory levels and rising component prices. We can also anticipate customers ramping up orders to avoid any potential supply shortages and to lock in prices before they climb any higher.

Samsung beat out the competition with regard to overall revenue haul, generating $4.2 billion from its NAND flash business in Q4 2023 – or an increase of 44.8 percent quarter over quarter – by increasing its shipment volume by 35 percent QoQ while boosting its average selling price by 12 percent.

SK Group (made up of SK Hynix and Solidigm) combined for $2.48 billion, representing a 33.1 percent increase compared to the previous quarter. WDC came in third place with $1.66 billion in revenue but only a seven percent increase quarter over quarter. Western Digital's bit shipment volume dipped by two percent but ASP rose by 10 percent. Kioxia and Micron rounded out the top five with $1.44 billion and $1.13 billion in revenue, respectively.

As we said a few months ago, there is no better time than the present to buy a new SSD. Prices are only going to go up from here, and who knowns when or if we will see another dip that brings prices this low again.

Permalink to story.

https://www.techspot.com/news/102159-nand-flash-market-turnaround-revenue-surged-25-q4.html

 

[Superconductor]

Good time to increase prices! ( laughing )

 

[redgarl]

I wonder if the cyclical aspect of NAND is going to be impacted by the datacenter demand predictions.

 

[yRaz]

All because samsung decided to cut production to increase margins.

 

[Disiw]

All because samsung decided to cut production to increase margins.

Many companies makes NAND.

Kioxia, SK Hynix, WD, Micron to name a few.

They probably did the same tho. If not, they would be grabbing marketshare, but they don't really.

 

[yRaz]

Many companies makes NAND.

Kioxia, SK Hynix, WD, Micron to name a few.

They probably did the same tho. If not, they would be grabbing marketshare, but they don't really.

With the largest, by far, being samsung. Who also just happened to say they were reducing production to increase margins

Despite rising NAND flash prices, Samsung maintains production cuts

Despite rising NAND flash prices, Samsung maintains production cuts

www.chosun.com

 

[Disiw]

With the largest, by far, being samsung. Who also just happened to say they were reducing production to increase margins

Despite rising NAND flash prices, Samsung maintains production cuts

Despite rising NAND flash prices, Samsung maintains production cuts

www.chosun.com

And? Then others could just be aggressive, but they are not.

 

[yRaz]

And? Then others could just be aggressive, but they are not.

Because they also want to increase their profit margins. Are you defending a near trillion dollar company's profit margins?

 

[Disiw]

Because they also want to increase their profit margins. Are you defending a near trillion dollar company's profit margins?

Not defending anyone, price is going up for a reason. Its not just Samsung.

Everything pretty much increased in price in the last few years. Why should NAND be any different.

Inflation and expenses gone up.

 

[yRaz]

Not defending anyone, price is going up for a reason. Its not just Samsung.

Everything pretty much increased in price in the last few years. Why should NAND be any different.

Inflation and expenses gone up.

Okay, but inflation is completely different from a company decreasing production to artificially increase prices

 

[Disiw]

Okay, but inflation is completely different from a company decreasing production to artificially increase prices

Every company does that. Supply vs demand. Business 101 really.

AMD scaled down CPU and GPU production multiple times.

AMD CEO Says It's Limiting Supply of CPUs and GPUs to Maintain High Prices

We would not be surprised if Nvidia was doing this as well.

www.extremetech.com

You hate AMD now?

Keeping production high, while demand is low, will get anyone in charge fired on the spot.

 

[yRaz]

Every company does that. Supply vs demand. Business 101 really.

AMD scaled down CPU and GPU production multiple times.

AMD CEO Says It's Limiting Supply of CPUs and GPUs to Maintain High Prices

We would not be surprised if Nvidia was doing this as well.

www.extremetech.com

You hate AMD now?

Keeping production high, while demand is low, will get anyone in charge fired on the spot.

At what point did I say anything about not buying samsung anymore? What you said has nothing to do with changing what samsung, or AMD, is doing any less of a scumbag move.