Average 13~18% increase: in-depth analysis by category
🟦NAND Flash Memory Contract Price @ Q2 2024
NAND flash memory contract prices in Q2 2024 are expected to increase by an average of 13~18% QoQ. By product category, enterprise SSDs are expected to increase by 20~25%, client SSDs by 10~15%, eMMC/UFS by 10~15%, and NAND wafers by 5~10%.
🟦 Increasing supplier production capacity
Despite Kioxia and Western Digital starting to ramp up production, other suppliers have not followed suit. As a result, NAND flash memory contract prices are expected to increase quarter-on-quarter in the second quarter.
Learn more about each category
Enterprise SSD: 20~25% increase
- Due to the growing demand from CSPs in North America and China, the purchase volume is expected to continue its upward trend during the first half of the year.
- Low order fulfillment rates for high-capacity SSD orders are influencing supplier pricing trends, and buyers may accept higher prices.
- Some shoppers are increasing their inventory levels ahead of the peak season in the second half of 2024.
Client SSD: 10~15% increase
- With the off-season in place, customers are cautious in their buying strategies.
- Ahead of the peak season in the second half of the year, the rapid rise in prices is likely to dampen order growth in the second half of the year.
eMMC/UFS: Up 10~15%
- Demand from Chinese smartphone suppliers is central.
- It is likely to accelerate the adoption of eMMC among smartphone suppliers.
- UFS is supported by smartphone demand in India and Southeast Asia, and the momentum of orders is high.
NAND wafers: 5~10% increase
- After the Chinese New Year, sales are on a downward trend as customers don’t show the need to stock up.
- Chinese smartphone brands are not agreeing on the price at which wafers are purchased directly, and are shifting to sourcing from module manufacturers. That’s why module manufacturers maintain high inventories.
🟦Summary
NAND flash memory contract prices in Q2 2024 will see a difference in the rate of increase by product category. Enterprise SSDs are expected to have the highest growth rate of 20~25%, while NAND wafers are expected to increase at a relatively low rate of 5~10%.
The rise in NAND prices is a tailwind for KIOXIA.
