NAND Flash shipments growth slows in 2Q24
TrendForce reports that NAND Flash prices continued to rise in 2Q24 as server inventory adjustments neared completion and AI spurred demand for high-capacity storage products. However, high inventory levels among PC and smartphone buyers led to a 1% QoQ decline in NAND Flash bit shipments.
Despite the decline in shipments, ASP increased by 15% and drove total revenue to USD 16.796 billion, a 14.2% growth compared to the previous quarter.
All NAND Flash suppliers returned to profitability starting in the second quarter and are expanding capacity in the third quarter to meet strong demand from AI and server markets. However, weaker-than-expected PC and smartphone sales in the first half of the year are likely to constrain NAND Flash shipment growth.
TrendForce forecasts that in Q3, the ASP of all NAND Flash products will rise by 5% to 10% QoQ, while bit shipments are expected to decline by at least 5% due to a lacklustre peak season. Overall industry revenue is expected to remain largely flat compared to the previous quarter.
Samsung’s revenue continues to rise in Q3
In the second quarter, Samsung responded to customer demand for enterprise storage products. However, due to weakness in the consumer electronics market, its NAND Flash bit shipments saw a slight quarterly decline. Meanwhile, ASP rose by 20% and brought Q2 revenue to USD 6.2 billion, up 14.8% from the previous quarter. Samsung expects its Q3 shipments to outperform the overall market, with higher price increases for enterprise SSDs driving further revenue growth.
TrendForce notes that the SK Group (SK hynix and Solidigm) maintained its position as the second-largest NAND Flash supplier by revenue in Q2. The rising demand for AI significantly boosted Solidigms’ shipments, although demand for PCs and smartphones was revised downward. As a result, the group’s bit shipments saw a slight decline, but the ASP increased by 16%, leading to a 13.6% QoQ rise in NAND Flash revenue to USD 3.716 billion. With AI continuing to drive demand for high-capacity enterprise SSDs, SK hynix plans to increase the proportion of enterprise SSD shipments to 40% in the long term.
Kioxia remained the third-largest NAND Flash supplier by revenue in Q2. Despite ongoing inventory adjustments by PC and smartphone customers, improved server demand led to a 12% increase in Kioxia’s bit shipments and a 20% rise in ASP. This brought Q2 revenue to $2.326 billion, a 27.7% increase from the previous quarter.
| Company | Revenue | Market share | ||
| 2Q24 | QoQ (%) | 2Q24 | 1Q24 | |
| Samsung | 6,200.0 | 14.8% | 36.9% | 36.7% |
| SK Group | 3,715.8 | 13.6% | 22.1% | 22.2% |
| Kioxia | 2,326.0 | 27.7% | 13.8% | 12.4% |
| Micron | 1,981.0 | 15.2% | 11.8% | 11.7% |
| WDC | 1,761.0 | 3.3% | 10.5% | 11.6% |
| Others | 812.8 | 2.8% | 4.8% | 5.4% |
| Total | 16,796.6 | 14.2% | 100% | 100% |
For more information visit TrendForce.
