Global NAND flash shipments increase 5.3% quarter-over-quarter in Q4 2022

As previously reported, NAND flash shipments in the third quarter of 2022 declined 6.7% quarter-over-quarter, with average selling prices dropping 18.3% and total revenue amounting to approximately $13.71 billion, a 24.3% decline. Recently, TrendForce released a report on the NAND flash market for the fourth quarter of 2022, revealing total revenue of $10.29 billion, a 25% decrease quarter-over-quarter.

Western Digital OptiNAND

Since the latter half of 2022, the NAND flash market has experienced shrinking demand and an intensified effort to reduce inventory within the supply chain. In the fourth quarter of 2022, NAND flash contract prices fell by 20-25%, and to avoid increasing inventory, demand-side procurement was not particularly aggressive. Shipments increased only 5.3% quarter-over-quarter, with average sales prices declining 22.8% and revenue totaling $10.29 billion, down 25% quarter-over-quarter.

Samsung, in promoting high-capacity products, has increased shipments but witnessed a significant reduction in average selling prices. In the fourth quarter of 2022, NAND flash revenue reached $3.48 billion, down 19.1% quarter-over-quarter, with a market share of 33.8%, maintaining its first-place ranking. Kioxia, affected by weak PC and smartphone demand and data center client inventory adjustments, saw NAND flash revenue of $1.968 billion in the fourth quarter of 2022, a 30.5% decline quarter-over-quarter, with a market share of 20.6%, ranking second.

The SK hynix & Solidigm group, influenced by client inventory reduction and fierce market price competition, reported $1.76 billion in revenue for the fourth quarter of 2022, down 30.9% quarter-over-quarter, with a market share of 18.5%, ranking third. Western Digital’s NAND flash shipments increased 20% quarter-over-quarter in the fourth quarter of 2022. Despite a decline in average selling prices, revenue only decreased 3.8% quarter-over-quarter, reaching $1.657 billion.

In the first quarter of 2023, Kioxia and Micron’s NAND flash production lines will continue to operate at low loads, while Western Digital and the SK hynix group will reduce production to alleviate the current oversupply situation. As the first quarter is traditionally a slow season, TrendForce predicts that NAND flash revenue in the first quarter of 2023 will still decrease by 8.1% quarter-over-quarter.