NAND Flash Industry Revenue Grows 2.9% in 3Q23, Expected to Surge Over 20% in Q4
December 5, 2023 | TrendForceEstimated reading time: 2 minutes
TrendForce reports a pivotal shift in the NAND Flash market for 3Q23, primarily driven by Samsung’s strategic decision to reduce production. Initially, the market was clouded by uncertainty regarding end-user demand and fears of a subdued peak season, prompting buyers to adopt a conservative approach with low inventory and slow procurement. However, as market leaders like Samsung implemented substantial production cuts, buyers’ attitudes shifted toward a more aggressive procurement strategy in anticipation of a market supply decrease. This led to a stabilization and even an uptick in NAND Flash contract prices by quarter-end, driving a 3% QoQ increase in bit shipments and culminating in a total revenue of US$9.229 billion, marking an approximate 2.9% increase.
The story unfolds with Kioxia and Micron—the only two to witness a dip in revenue rankings this quarter—while Samsung maintained its robust performance. Despite sluggish demand in the server sector, Samsung’s fortunes rebounded thanks to a boost in consumer electronics, especially with high-capacity products in PCs and smartphones. Samsung emerged from a trough in Q3, with strategic inventory replenishments fueling further strategic stocking, and a shift in operational focus toward maximizing profit. This led to a minor 1–3% decrease in shipped bits, but a 1–3% increase in ASP, stabilizing Q3 NAND Flash revenue at US$2.9 billion.
Kioxia saw a 3% increase in Q3 ASP, boosted by rebounding wafer contract prices and early strategic stockpiling by laptop clients. However, a delay in orders from American smartphone brands led to a 10–15% decrease in shipped bits, causing a dip in NAND Flash revenue to US$1.34 billion, marking an 8.6% decline in QoQ.
Micron was characterized by steady orders from PC and mobile sectors and inventory restocking by some enterprise SSD clients. Despite maintaining bit shipments from Q2, a 15% drop in ASP led to a slight slip in revenue to US$1.15 billion, a 5.2% decrease in QoQ. Yet, Q4 forecasts a more vibrant scenario, with a comprehensive rebound in contract prices and a surge in order growth driven by price hikes, setting Micron up for over 20% revenue growth QoQ.
Other industry giants like SK Group (SK hynix & Solidigm) and WDC rode the wave of renewed demand in consumer electronics. SK Group, buoyed by renewed demand for high-capacity products in the PC and smartphone arenas, maintained a steady increase in bit shipments, catapulting Q3 NAND Flash revenue to US$1.86 billion–an 11.9% uptick. WDC’s narrative echoed this success, with Q3 PC demand outstripping forecasts and resilient demand in mobile and gaming categories underscoring an effective price-driven increase in bit shipments, thus boosting the NAND Flash division’s revenue to US$1.556 billion, a significant 13% climb in QoQ.
Suggested Items
FPT Unveils Strategic Directions, “All In” on AI, Automotive and Semiconductor
04/15/2024 | BUSINESS WIREFPT Corporation (FPT) announced its strategic directions for the 2024-2026 period at the 2024 Annual General Meeting, with five focused areas defined as Artificial Intelligence (AI), Automotive, Semiconductor, Digital Transformation, and Green Transformation.
Electronic System Design Industry Posts $4.4 Billion in Revenue in Q4 2023, ESD Alliance Reports
04/09/2024 | SEMIElectronic System Design (ESD) industry revenue increased 14% to $4,423 million in the fourth quarter of 2023 from the $3,879.9 million logged in the third quarter of 2023, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report.
Sypris Reports Q4 Revenue Up 17%; Backlog Exceeds $115 Million
04/01/2024 | BUSINESS WIREConsolidated revenue for the quarter increased 16.9% and 23.7% for the full year driven by double digit expansion of shipments across both segments.
LPKF Reports Strategic Successes and Narrowly Achieves Forecast for 2023 Financial Year
03/26/2024 | LPKFLPKF Laser & Electronics SE generated revenue of EUR 124.3 million in the financial year (previous year: EUR 123.7 million) and earnings before interest and tax (EBIT) of EUR 3.7 million (previous year: EUR 6.8 million), putting the EBIT margin at 3.0% (previous year: 5.5%).
Jabil Posts Second Quarter Results
03/18/2024 | Jabil“Despite revenue headwinds this year, which are expected to be short-term, I’m pleased with the resiliency of our model and our team’s demonstrated ability to execute,” said CEO Kenny Wilson. “Even under these conditions, we expect to deliver strong core operating margins and free cash flow in FY24,” he added.