Global NAND flash memory revenue fell by 24.3% quarter-on-quarter in 2022Q3

TrendForce has released a report on the NAND flash memory market for the third quarter of 2022, showing a plunge in demand due to weak demand, and shipments of end products including consumer electronics and servers were lower than expected. To make matters worse, the industry is still pessimistic about the economic outlook. Many companies have begun to reduce their capital expenditure plans or even stop purchasing activities. The inventory problem eventually spread to NAND flash memory suppliers, resulting in a sharp increase in sales pressure.

According to the survey, NAND flash bit shipments fell by 6.7% quarter-on-quarter in the third quarter of 2022; the overall average selling price is also declining, down 18.3% quarter-on-quarter; due to the harsh market environment, the total revenue of the NAND flash memory industry in the quarter was approximately $13.71 billion, a decrease of 24.3% from the previous quarter.

During the quarter, there were two noticeable changes among NAND flash suppliers. First of all, SK Hynix Group (SK Hynix + Solidigm) fell to third place and was the most affected manufacturer. Its revenue fell 29.8% month-on-month to $2.54 billion. Next, Kioxia jumped to second place, and its revenue fell only 0.1% month-on-month to $2.83 billion. In addition, the first place is still dominated by Samsung, its revenue fell 28.1% to $4.3 billion.

Entering the fourth quarter, except for Samsung, other NAND flash memory suppliers have become more cautious in capacity planning. In order to restore the balance between supply and demand as soon as possible, NAND flash memory suppliers have taken measures such as reducing wafer investment and slowing down the pace of technology migration. However, the increase in demand for the holidays at the end of the year did not appear this year.

TrendForce expects that the price of NAND flash memory products will still face obvious downward pressure in the fourth quarter of 2022. The month-on-month decline in NAND flash contract prices will expand from 20% to 25%, and the quarterly total revenue will also continue to decline, with a month-on-month drop of nearly 20%.