NAND Flash Industry Revenue Grows 2.9% Q/Q in 3Q23 at $9.229 Billion

This market report, published on December 5, 2033, was written by Bryan Ao, research staff member at TrendForce Corp.

NAND Flash Industry Revenue Grows 2.9% in 3Q23,
Expected to Surge Over 20% in Q4

It reports a pivotal shift in the NAND flash market for 3Q23, primarily driven by Samsung’s strategic decision to reduce production.

Initially, the market was clouded by uncertainty regarding end-user demand and fears of a subdued peak season, prompting buyers to adopt a conservative approach with low inventory and slow procurement. However, as market leaders like Samsung implemented substantial production cuts, buyers’ attitudes shifted toward a more aggressive procurement strategy in anticipation of a market supply decrease. This led to a stabilization and even an uptick in NAND flash contract prices by quarter-end, driving a 3% Q/Q increase in bit shipments and culminating in a total revenue of $9.229 billion, marking an approximate 2.9% increase.

The story unfolds with Kioxia and Micron – the only 2 to witness a dip in revenue rankings this quarter – while Samsung maintained its robust performance.

Despite sluggish demand in the server sector, Samsung’s fortunes rebounded thanks to a boost in consumer electronics, especially with high-capacity products in PCs and smartphones. Samsung emerged from a trough in 3Q23, with strategic inventory replenishments fueling further strategic stocking, and a shift in operational focus toward maximizing profit. This led to a minor 1-3% decrease in shipped bits, but a 1-3% increase in ASP, stabilizing 3Q23 NAND flash revenue at $2.9 billion.

Kioxia saw a 3% increase in 3Q23 ASP, boosted by rebounding wafer contract prices and early strategic stockpiling by laptop clients. However, a delay in orders from American smartphone brands led to a 10-15% decrease in shipped bits, causing a dip in NAND flash revenue to $1.34 billion, marking an 8.6% decline in Q/Q.

Micron was characterized by steady orders from PC and mobile sectors and inventory restocking by some enterprise SSD clients. Despite maintaining bit shipments from 2Q23, a 15% drop in ASP led to a slight slip in revenue to $1.15 billion, a 5.2% decrease in Q/Q. Yet, 4Q23 forecasts a more vibrant scenario, with a comprehensive rebound in contract prices and a surge in order growth driven by price hikes, setting Micron up for over 20% revenue growth Q/Q.
 
Other industry giants like SK Group (SK hynix and Solidigm) and WDC rode the wave of renewed demand in consumer electronics.

SK Group, buoyed by renewed demand for high-capacity products in the PC and smartphone arenas, maintained a steady increase in bit shipments, catapulting 3Q23 NAND flash revenue to $1.86 billion – an 11.9% uptick.

WDC’s narrative echoed this success, with 3Q23 PC demand outstripping forecasts and resilient demand in mobile and gaming categories underscoring an effective price-driven increase in bit shipments, thus boosting the NAND flash division’s revenue to $1.556 billion, a significant 13% climb Q/Q.