Total NAND Flash Revenue Falls 16.1% in 1Q23 as Demand Continues to Decline
June 1, 2023 | TrendForceEstimated reading time: 1 minute
TrendForce’s recent analysis reveals that purchasing momentum in the NAND Flash market has decelerated during 1Q23. Despite suppliers aggressively slashing prices to stimulate sales, the bit shipment volume of NAND Flash witnessed only a marginal growth of 2.1% over the quarter. Coupled with a 15% drop in ASP, the NAND Flash industry registered a QoQ revenue decrease of 16.1%, amounting to about US$8.63 billion.
SK Group (SK hynix & Solidigm) and WDC experienced a simultaneous fall in volume and price, leading to a reduction in revenue of more than 20% for each. The first quarter saw SK Group’s NAND Flash revenue dwindle to US$1.32 billion, a 24.8% QoQ decline. This decrease was due to sluggish PC market demand, which cut the revenue contribution from the previously dominating SSD sector from over 50% in 4Q22 to just 20–25% in 1Q23. WDC, likewise, felt the sting of the off-season, with NAND Flash revenue sinking by 21.1% to approximately US$1.31 billion.
With demand from major end-use sectors like servers, laptops, and smartphones remaining stagnant, Samsung sought to bolster bit shipments by pushing high-capacity products. However, this strategy resulted in an 18.3% decrease in ASP over the quarter and brought Samsung’s NAND Flash revenue down by 15.8% to around US$2.93 billion in 1Q23. Similarly, Kioxia grappled with weakened consumer demand, and despite an 18% rise in bit shipment volume, a substantial 20.3% reduction in ASP led to a 5.9% QoQ decrease in revenue, totaling about US$1.85 billion.
Micron’s Q1 NAND Flash revenue fell significantly by 19.8% to US$890 million. However, as PC and mobile customer inventories return to healthy levels, Micron expects its inventory peak to have been reached in 1Q23 and hopes to break from the oversupply situation by implementing ongoing production reduction measures.
Looking ahead to 2Q23, TrendForce anticipates an increase in buyer purchasing intentions, spurred in part by Samsung’s recent foray into production reduction. In particular, module manufacturers and PC OEMs appear to be leading the charge, with total NAND Flash bit shipment volume predicted to rise by 5.2% QoQ. Despite this, ongoing inventory clearance pressures are expected to cause a further decline in ASP across all products. As a result, TrendForce forecasts that Q2 revenue for the NAND Flash industry will continue its downward trend, with an estimated decrease of around 7.9% from the previous quarter.
Suggested Items
Revolutionizing Sustainable Energy: Georgia Solar Companies Partner with Georgia Power to Unveil New Parking Deck Solar Array
04/19/2024 | BUSINESS WIREThree Georgia-based solar companies have joined together to design, build and construct an innovative solar array atop the parking deck at Georgia Power’s headquarters in Atlanta, Georgia.
Mycronic Releases Interim Report January–March 2024
04/18/2024 | MycronicNet sales increased 39 percent to SEK 1,692 (1,219) million. Based on constant exchange rates, net sales increased 42 percent.
Aspocomp’s Q1 Net Sales and Operating Result Decreased YoY
04/18/2024 | AspocompInflation and interest rates, weak economic development, the uncertainties posed by Russia’s war of aggression and the situation in the Middle East, and global trade policy tensions will affect the operating environment of Aspocomp and its customers in the 2024 fiscal year.
Europe’s IT, Business Services Sector on the Rebound in Q1: ISG Index
04/15/2024 | BUSINESS WIREEurope’s demand for IT and business services in the first quarter rose for the first time in a year, powered by growth from the banking, financial services and insurance (BFSI) sector, according to the latest state-of-the-industry report from Information Services Group (ISG), a leading global technology research and advisory firm.
FTG Announces Q1 2024 Financial Results
04/12/2024 | Firan Technology Group CorporationDuring Q1 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished the following in Q1 2024, which continues to improve the Corporation and position it for the future: