ARM Architecture

World NAND Flash Income Fell by 24.3% QoQ for 3Q23 as Suppliers Made Massive Value Concessions That in Flip Impacted Their Outcomes, Says TrendForce


November 24, 2022 — Market intelligence agency TrendForce studies that the entire NAND Flash market was severely weakened by plummeting demand in 3Q22. As a result of shipments of finish merchandise together with shopper electronics and servers had been beneath expectations, the general NAND ASP fell by 18.3% QoQ. Moreover, the overall financial outlook remained pessimistic, so enterprises throughout many sectors began to reduce their capital expenditure plans and halted the momentum of their procurement actions. Because of this improvement, the issue of extra stock ultimately unfold to NAND Flash suppliers. The stress on suppliers to make gross sales was ratcheted up dramatically. In keeping with TrendForce’s investigation, NAND Flash bit shipments fell by 6.7% QoQ for 3Q22, and the general NAND Flash ASP additionally saved sliding. On account of the unfavorable market scenario, the NAND Flash trade recorded a complete income of round US$13.71 billion for 3Q22. The QoQ income decline reached as a lot as 24.3%.

The rating of NAND Flash suppliers by income noticed two notable modifications for 3Q22. First, SK Group moved down to 3rd place because it suffered the most important income drop amongst suppliers. Its income slipped by 29.8% QoQ to US$2.54 billion primarily because of the vital deterioration of the demand for PCs and smartphones. Its subsidiary Solidigm was additionally affected by the slowdown in server procurements. Beforehand, servers had a reasonably steady demand scenario in contrast with other forms of finish merchandise. Nonetheless, server demand ultimately buckled in 3Q22 as results of enterprises slicing capital expenditure and present process a interval of stock correction. In contrast with 2Q22, SK Group (that encompasses SK hynix and Solidigm) posted a drop of 11.1% in bit shipments and a good steeper decline of greater than 20% in ASP.

The opposite notable change within the 3Q22 rating was Kioxia. The provider returned to second place when it comes to income and market share as a result of it was capable of make a gradual restoration from the fabric contamination incident that had occurred earlier this 12 months. Though Kioxia did undergo a big decline in its ASP because of the slumping demand for shopper electronics, its bit shipments have been bolstered by the seasonal stock-up actions of its shoppers within the smartphone trade and rose by 23.5% QoQ. Taken altogether, Kioxia’s income dipped by simply 0.1% QoQ to US$2.83 billion.

Owing to Downturn in Each Amount and Value, Micron Posted Largest Drop in NAND Flash Bit Shipments with QoQ Decline Reaching 21%

Different NAND Flash suppliers together with Samsung, Western Digital and Micron all posted a substantial QoQ decline in income for 3Q22 due to a drop in each worth and cargo amount. Once more, weakening demand for finish merchandise was one of many main causes behind these suppliers’ poor performances. Concerning Samsung, the provider noticed a drop in its enterprise SSD shipments throughout 3Q22 as server demand slowed down. This was a pointy unfavourable flip in contrast with the scenario in 2Q22, when orders associated to knowledge facilities have been propping up enterprise SSD procurements. Samsung’s income fell by 28.1% QoQ to US$4.3 billion for 3Q22.

Western Digital’s NAND Flash enterprise have been beneath huge stress in 3Q22 because it recorded a QoQ decline in bit shipments and a pointy drop in its ASP. All in all, Western Digital’s income fell by 28.3% QoQ to US$1.72 billion. Turning to Micron, an evaluation of its reminiscence income efficiency, which encompasses each DRAM and NAND Flash, has revealed that the one the appliance phase that did properly in 3Q22 was automotive reminiscence options. Micron truly posted a brand new excessive for its income from automotive reminiscence options in that quarter. Conversely, its income figures associated to different memory-related functions, together with NAND Flash options for knowledge facilities, industrial IoT, and many others., all exhibited a QoQ drop. And due to the poor outcomes for the remainder of software segments, Micron’s NAND Flash income as a complete registered a steep QoQ decline of 26.2% to US$1.69 billion.

NAND Income Will Present a QoQ Drop Once more for 4Q22 as Stock Stress Continues to Mount and Manufacturing Cuts Carry No Quick Aid

Transferring into 4Q22, TrendForce believes that with the notable exception of Samsung, most suppliers might be extra cautious in planning output following their respective earnings requires the third quarter. To revive steadiness to supply-demand dynamics as shortly as potential, suppliers might be taking measures resembling slicing wafer enter and decelerating the tempo of know-how migration. Nonetheless, the same old demand surge in reference to the year-end vacation gross sales has didn’t materialize this 12 months, and NAND Flash patrons’ passiveness is inflicting stock to additional accumulate on the provision facet. As for manufacturing cuts, their impact available on the market won’t be obvious for a minimum of 1 / 4. Therefore, costs of NAND Flash merchandise will nonetheless be beneath vital downward stress in 4Q22, and TrendForce has widened the projected QoQ decline in contract costs to twenty~25% in its newest forecast. With excessive stock and falling costs serving as constraining components, the NAND Flash trade can be forecasted to publish a QoQ decline of virtually 20% in its whole income for 4Q22.

For extra data on studies and market knowledge from TrendForce’s Division of Show Analysis, please click on right here, or e-mail Ms. Vivie Liu from the Gross sales Division at vivieliu@trendforce.com

For extra insights from TrendForce analysts on the newest tech trade information, traits, and forecasts, please go to our weblog at https://insider.trendforce.com/

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