Flash memory manufacturers have achieved their goal prices for SSDs

Flash memory manufacturers have achieved their goal: prices for SSDs will rise from the end of the year

This year, even the leading company in the market, Samsung Electronics, decided to reduce the production volumes of NAND memory, although it has held out the longest in this regard compared to its competitors. The involuntary consolidation of market participants in such a decision bore fruit and as already mentioned TrendForceIn the fourth quarter, contract prices for solid-state storage will generally increase by 8-13%.

    Image source: Samsung Electronics

Image source: Samsung Electronics

According to experts, further price dynamics will depend on the demand for solid-state drives in the server segment. If this manifests itself against the background of corporate customers’ interest in artificial intelligence, prices for solid-state storage will continue to rise next year.

In the consumer segment of the SSD market, contract prices for drives will increase by the same 8-13% in the fourth quarter, according to TrendForce analysts. Typically, prices increase for both entry-level products and expensive products. Due to the accumulated product inventory, there is little room for further price reductions on client SSDs. PC manufacturers have built up an inventory of drives that exceeds actual end-market needs, and price increases have so far only been possible in certain niches.

    Image source: TrendForce

Image source: TrendForce

Directly in the server segment, as TrendForce explains, demand began to grow in the second half of the year, although major cloud providers in the USA still have significant reserves of data storage devices. Demand is also starting to increase in China as inventories at local cloud providers have fallen to appropriate levels. In addition, the upcoming fall sales season is forcing Chinese Internet giants to invest in upgrading technical infrastructure in advance. In general, providers are likely to start purchasing server drives in larger quantities again in the fourth quarter. According to TrendForce representatives, contract prices for SSDs in the server segment will increase by 5-10% in the fourth quarter.

In the eMMC segment, which focuses on embedded solutions, contract prices for SSDs will increase by 10-15% in the current quarter due to lower inventories and lower production volumes, resulting in more favorable conditions for sellers. In the memory card market (UFS), the increase in contract prices in the fourth quarter will also be 10-15%, as market participants have largely already exhausted further opportunities to reduce prices. Contract prices for silicon wafers for the production of 3D NAND memories will increase by 13-18% in the current quarter, as previous declines in delivery volumes have created the necessary conditions for this.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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