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
Sanmina's Second Quarter Fiscal 2024 Financial Results
05/02/2024 | Sanmina Corp.Sanmina Corporation, a leading integrated manufacturing solutions company, today reported financial results for the fiscal second quarter ended March 30, 2024 and outlook for its fiscal third quarter ending June 29, 2024.
TTM Technologies Reports First Quarter 2024 Results
05/02/2024 | TTM TechnologiesTTM Technologies, Inc., a leading global manufacturer of technology solutions including mission systems, radio frequency components and RF microwave/microelectronic assemblies, quick-turn and technologically advanced printed circuit boards , reported results for the first quarter 2024, which ended on April 1, 2024.
Worldwide Silicon Wafer Shipments Dip 5% in Q1 2024
05/01/2024 | SEMIWorldwide silicon wafer shipments decreased 5.4% quarter-over-quarter to 2,834 million square inches in the first quarter of 2024, a 13.2% drop from the 3,265 million square inches recorded during the same quarter last year, the SEMI Silicon Manufacturers Group (SMG) reported in its quarterly analysis of the silicon wafer industry.
Plexus Announces Fiscal Q2 Financial Results
04/30/2024 | Plexus Corp.Plexus Corp. announced financial results for our fiscal second quarter ended March 30, 2024, and guidance for our fiscal third quarter ending June 29, 2024.
NCAB Group Posts Interim Report Q1 2024
04/26/2024 | NCAB GroupNet sales decreased by 17% to SEK 950.6 million (1,146.4). Compared with the year-earlier period, sales were affected bylower prices and continued inventory adjustments by customers. In USD, net sales decreased 17%. For comparable units, net sales decreased 24% in both SEK and USD.