In accordance with to the investigation (opens in a new tab) from the market intelligence firm TrendForce.
The NAND Flash industry posted total revenue of around US$13.71 billion for 3Q22, which Trendforce pegged to below-expectation figures in terms of overall shipments of end-products such as consumer electronics, workstations, and servers, linked to a generally downbeat economic outlook and lower capital spending by companies.
Shipments of 3D NAND fell 6.7% during the quarter according to the research, but this caused an average price drop of 18.3% during the period, as manufacturers sought to lower prices as part of efforts to make your products more attractive.
What is 3D NAND?
3D NAND is a variety of non-volatile flash memory in which the memory cells overlap vertically, in contrast to 2D NAND, which has only one memory cell.
Who took the hit?
This decline was not felt equally among manufacturers.
South Korean hardware giant SK Group’s revenue fell 29.8% quarter-over-quarter to $2.54 billion, making it third in the ranking of NAND memory makers.
Samsung remained at the top of the totem pole survey of NAND manufacturers with a 31.4% market share, moving $4.3bn worth of hardware during the period, despite sales declining 28.1% quarter. after quarter.
In line with the broader industry decline, Western Digital saw revenue fall 28.3% qoq to $1.72 billion, while Micron posted a 26.2% revenue drop to $1.69 billion.
The market outlook remains pessimistic, at least for the near future according to TrendForce.
The analyst firm predicts that as a result of high inventory and falling prices, the NAND Flash industry will post a further decline of nearly 20% in total revenue for the fourth quarter.
Trendforce predicts that, with the exception of Samsung, suppliers will be more cautious in production planning and will seek to “rebalance” supply-demand dynamics as quickly as possible, which could include measures such as reducing wafer input and slow down the pace. of technological migration.
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