TrendForce: The QoQ decline in prices of enterprise SSDs widened to 25% for 4Q22
Recently, TrendForce released its latest market research report, showing that the quarter-on-quarter decline in enterprise SSD prices widened to 25% in the fourth quarter of 2022, with total revenue for the quarter at only $3.79 billion, a 27.4% decrease from the previous quarter. From the NAND flash industry category perspective, the trend is expected to continue into the first quarter of 2023, with a further quarter-on-quarter decline.
Samsung’s enterprise SSD revenue in the fourth quarter of 2022 was $1.78 billion, and its market share increased to 46.9%. After entering 2023, Samsung continued to maintain its leadership position in the enterprise SSD market by withstanding challenges from other competitors. This is largely due to its comprehensive product line and leading technological position. Samsung’s PCIe 5.0 enterprise SSDs will appear on enterprise platforms in the second half of 2023, and samples have already been sent to customers for certification.
As the number of applications and services related to artificial intelligence technology increases, demand related to high-performance computing is also increasing. Samsung’s SSD, combined with its DRAM and HBM products, has developed an effective product strategy, putting it in a more advantageous position compared to its competitors.
SK Hynix’s enterprise SSD revenue in the fourth quarter of 2022 was $720 million, and its market share decreased to 19%. Originally, SK Hynix planned to complete the development of SSD products mainly through Solidigm after the completion of the first phase of the merger with Solidigm and to launch a 176-layer TLC enterprise SSD in 2023. However, the collaboration strategy has recently undergone some changes. SK Hynix needs to rely on the demand from the Chinese market this year to increase its market share of enterprise SSD, while the progress of QLC enterprise SSD is the key factor affecting its long-term shipments.
Western Digital’s enterprise SSD revenue in the fourth quarter of 2022 was $493 million, and its market share slightly increased to 13%. The biggest problem is that its PCIe 4.0 products lag behind its competitors, and there are also some deficiencies in preparing for upcoming PCIe 5.0 products. Kioxia’s enterprise SSD revenue in the fourth quarter of 2022 was $491 million, and its market share slightly increased to 12.9%. Next, it will accelerate the certification of PCIe 4.0 products in OEM manufacturers to expand its market share in China, and its PCIe 5.0 products have entered the mass production stage.