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Oversupply of NAND Flash would drive down its price

TrendForce yesterday published a study on the price of wafers nand flash. It shows a reduction by flash memory vendors in an effort to boost sales and offset weak retail demand since March. The price of NAND Flash wafers should start falling From Maywhile, on the other hand, the supply of NAND Flash will exceed the demand during the second quarter of 2022. Moreover, it is estimated that the price decline during the third quarter of 2022 could reach a 5-10%.

If we go back a moment with the news of the contamination accident that occurred in the factories of Western Digital and KIOXIA, we know that there was going to be an increase in the price of Flash memory. However, due to war between Russia and Ukraine and the subsequent increase inflation; market demand was not as high as it was at that time. As a result, suppliers had to adapt to the situation and therefore during the third quarter of 2022, prices SSDs, eMMC cards and UFS will remain enough assorted.

NAND Flash Price Estimates in 2022

TrendForce NAND Flash Price 2021-2022

However, as we can see the situation where the global NAND Flash market is likely to end up in a oversupply and low demandwhich would put us in a scenario where prices could increase between 0 and 5% in the third quarter of 2022. And, by expanding the information on demand, we know that prices Chromebooks They largely stopped selling in early 2022 due to an improvement in the pandemic and reduced needs to be locked down at home. Something similar happened with the laptop for personal use, which has also seen a drop in demand, although those for commercial useIf they have lived growth thanks to the return to office work.

Regarding the request for smart phonesthese have indifferent in its sales due to China’s fight against COVID, imposing severe restrictions that affect the sales of this Asian giant. Now let’s go to the offerwe emphasize Samsung focusing on the future growth of the enterprise SSD sector, knowing that its NAND Flash production was hit after the Xi’an lockdown late last year. To counter the latter, Samsung continues increase capacity of its P2L factory in South Korea.

Finally, to respond to the offer, Yangtze Memory Technologies (YMTC) says it will also expand its plan to accelerate the arrival of wafers during the second quarter of 2022. YMTC will also ramp up production at its second plant in Wuhan, while noting that the 128L pass rate achieved the company’s goal. The latter would make them capable of entering the supply chain for the creation of high-end mobiles during the first half of 2022.

Via: TrendForce

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