The flash market plunged 243 in the third quarter

The flash market plunged 24.3% in the third quarter — only Kioxia dodged losses

According to TrendForce, the global NAND flash market saw a significant drop in demand in the third quarter of 2022. The study showed that flash memory sales during the period brought in revenue of US$13.71 billion due to an unfavorable market situation, down 24.3% compared to the second quarter. At the same time, the total capacity of NAND chips sold fell just 6.7% sequentially.

    Image source: SKhynix

Image source: SKhynix

It is reported that the overall flash memory market was severely weakened in the third quarter due to lower demand. As shipments of end products, including consumer electronics and servers, were lower than expected, the overall average selling price (ASP) fell 18.3% from the second quarter. The macroeconomic outlook remained pessimistic, so industry officials began cutting their own investment plans and slowing the pace of purchases, including memory chips. As a result, the overstocking issue ultimately impacted negatively on NAND flash vendors.

In the third quarter, there were two notable changes in the ranking of NAND flash vendors by revenue. First, SK hynix fell to third place as the company experienced the largest drop in sales among suppliers. SK hynix revenue fell 29.8% sequentially to $2.54 billion, according to TrendForce. This decline was mainly due to falling demand for computers and smartphones. Solidigm, a subsidiary of SK hynix, was also affected by the falling demand for servers.

The other notable change in the third quarter was Kioxia’s return to second place in the rankings in terms of revenue and market share. Although Kioxia was forced to significantly reduce the average selling price of flash memory due to falling consumer electronics demand, the company managed to increase shipments by 23.5% sequentially. Kioxia’s revenue declined just 0.1% in the quarter compared to the previous three-month segment to total $2.83 billion.

    Image source: TrendForce

Image source: TrendForce

Other NAND flash makers, including Samsung, Western Digital and Micron, saw significant revenue declines in the third quarter due to falling prices and demand. Samsung has reduced its shipments of solid state drives to corporate customers over the past three months. Samsung’s Q3 revenue in this segment declined 28.1% qoq to $4.3 billion. Western Digital’s NAND flash revenue fell 28.3% to $1.72 billion. Micron NAND sales declined 26.2% sequentially in the third quarter year-on-year and totaled $1.69 billion.

TrendForce analysts expect NAND flash sales to continue to decline in the fourth quarter. With the exception of Samsung, suppliers will be more careful in planning production volumes in order to quickly rebalance supply and demand.


About the author

Dylan Harris

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

Add Comment

Click here to post a comment