NAND Flash industry revenue grows 24.5% in Q423

This spike is explained by a combination of year-end promotions that stabilised end-demand and price-chasing that increased component market orders, resulting in strong bit shipments compared to the same period last year. Strategic stockpiling and the business sector's sustained optimism about 2024 demand – as opposed to 2023 demand – have also contributed to this development.

Even though 1Q24 is usually considered an off-season, the NAND Flash market is predicted to witness a further 20% growth in revenues. This expectation is supported by notable increases in supply chain inventory levels and continuous price increases, as customers increase their purchases in anticipation of possible supply shortages and rising costs. The ongoing expansion of order sizes is expected to drive NAND Flash contract prices up by an average of 25%, TrendForce reports.

In Q4, Samsung was the talk of the town thanks to significant growth driven by a spike in demand for servers, notebooks, and smartphones. Despite not being able to fulfil all of the orders placed by customers, Samsung's bit shipping volume increased by 35% QoQ and its ASP increased by 12%, resulting in a noteworthy 44.8% QoQ jump in revenue to USD 4.2 billion. Samsung was followed by SK Group, which had a 33.1% increase in sales to USD 2.48 billion as a result of notable price recoveries.

Western Digital's NAND Flash segment witnessed a 7% increase in revenue to USD 1.67 billion, driven by a 10% increase in ASP – but a minor 2% dip in shipping volume. The retail SSD market witnessed a substantial boost in shipments due to a price rebound, dropping inventory levels to a four-year low. Kioxia, boosted by PC and smartphone client orders, reported a modest shipment growth and an 8% revenue increase to USD 1.44 billion in Q4.

Faced with the most severe oversupply situation in 2023, the industry witnessed prices climbing nearly 10% in Q4. However, Micron dramatically cut its supply to increase profitability, resulting in a more than 10% QoQ drop in bit shipments and a 1.1% drop in revenue to USD 1.14 billion. Furthermore, Micron expects a 15-20% annual increase in NAND Flash demand bit growth this year, emphasising the importance of continual capacity adjustments to establish a balance between supply and demand and possible profitability in the sector,  the report concludes.