The NAND flash market will end the almost two year decline
Hardware

The NAND flash market will end the almost two-year decline and grow again in the third quarter

The NAND flash memory market, one of the most important segments of the semiconductor industry, is facing great challenges and changes. The pandemic, geopolitical tensions, competitive dynamics and demand volatility are taking their toll on the industry. However, according to analysts at Yole Intelligence, the long-term prospects for the NAND market remain promising. The increasing need for data generation and storage as well as the introduction of new technologies create the conditions for future growth.

    Image source: PublicDomainPictures / Pixabay

Image source: PublicDomainPictures / Pixabay

Accordingly Yole Intelligence, the NAND market has faced numerous challenges over the past several years, reinforcing the notion that uncertainty is the only constant in memory markets. Looking ahead, the long-term prospects for the NAND market are mixed. The market is driven by emerging megatrends leading to significant growth in data generation and storage requirements for on-premise, edge and cloud applications. Demand for NAND is further fueled by the continued replacement of hard drives by solid-state drives. However, the competitive dynamics in the NAND market are complex.

The demand for NAND is driven by several factors, including: Enterprise SSDsused by big tech companies and traditional enterprise OEMs, the proliferation of SSDs in PCs and gaming consoles, and the ever-expanding storage capacity of smartphones and other mobile devices. These segments will continue to be the main consumers of NAND, however new trends such as the adoption of AI and VR, autonomous driving and IoT are expected to drive future growth. According to the analysts’ forecast, the decline in the NAND market, which has continued for seven consecutive quarters, will finally give way to growth in the third quarter.

    Image source: Yole Intelligence

Image source: Yole Intelligence

As for the main players, Samsung is expanding its manufacturing facilities in Pyeongtaek (South Korea) and Xi’an (China). There is also information about the merger of Kioxia and Western Digital (instead of the Kioxia IPO) and SK hynix took over Intel’s NAND/SSD business, which was renamed Solidigm. Despite a relatively small market share, Micron remains a leader in 3D NAND technology. Chinese company Yangtze Memory Technologies Co. (YMTC) has made impressive technological advances but faces uncertainty due to US sanctions.

    Image source: Yole Intelligence

Image source: Yole Intelligence

In the first quarter of 2023, the NAND market faced significant challenges, including operating losses from all vendors and rising inventory levels. This led to a reduction in supply and a fall in the average selling price. The year 2023 is likely to be challenging for the market due to the upcoming downturn and increasing financial losses. Despite the current challenges, the market continues to adapt to new technology trends while maintaining its key role in the global storage infrastructure.

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Dylan Harris

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

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