Western Digital raises NAND flash prices as manufacturing pollution in
Hardware

Western Digital raises NAND flash prices as manufacturing pollution in January

Western Digital announced that it has increased contract prices for 3D NAND flash memory. The decision follows an incident at one of its factories in January, when it was found that contaminated materials had been used to manufacture a significant number of chips. The manufacturer announced this in a letter to its partners, a copy of which is available turned out at the resource PC clock.

Image source: Western Digital

Image source: Western Digital

Recall that two Japanese flash memory manufacturing factories owned by Western Digital and Kioxia in Yokkaichi and Kitakami suffered from this incident. The contamination of raw materials meant that significant amounts of finished products had to be written off and the production cycle had to be stopped. Given that the manufacturing process for modern 3D flash drives takes two to three months, Western Digital estimates the incident will result in undershipments of up to 6.5 EB (6.5 million TB) of flash drives.

As the portal writes Tom’s hardware, Kioxia’s loss could be even bigger since it typically frees up more memory chips than Western Digital. If forecasts are correct, there could be a total loss of up to 14 EB (14 MTB) flash memory, estimated to be a quarter of the total NAND flash chips released by both companies in the first quarter of this year.

In the letter, Western Digital indicates that it will update its partners on the situation related to the production of NAND flash memory chips, and also promises to help implement and promote their products. The company is not releasing new prices for its products, but according to TrendForce analysts, contract prices for NAND flash memory could increase by 5-10% in the second quarter of this year.

Solid-state drive maker partners Western Digital and Kioxia are also likely to increase the prices of their products, despite existing production stocks of chips already purchased from both companies’ businesses prior to the incident. Keep in mind that American and Japanese manufacturers account for about 35% of the NAND flash memory market.

Upbeat forecasts are also not supported by reports that Western Digital’s competitors plan to mirror the prices of their NAND flash memory thereafter.

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About the author

Dylan Harris

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

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