Western Digital and its production partner Kioxia said on Thursday that materials used in the production of flash memory chips were contaminated, affecting production at two factories in Japan. On February 14, Western Digital issued a notice to customers announcing an immediate price increase for all Flash products. Western Digital said: " Our costs have increased significantly in the short term, and we are working hard to assess the long-term impact of this event. Therefore, we will immediately increase the price of all Flash products." However, Western Digital did not disclose the price increase. magnitude.
On February 9, due to the contamination of the materials used to produce flash memory chips, the joint venture between Western Digital and Kioxia’s factory in Yokkaichi, Japan and Kitakami factory stopped production, and a large number of wafers were scrapped. It is expected to wait until March 2022 at the earliest. normal production can be resumed. Western Digital said at the time that the accident would reduce its 3D NAND flash production by at least 6.5EB (this data does not include losses from Kioxia). Given the severity of the production disruption, expect to see a significant impact on SSD supply in the near future.
The flash memory capacity of Kioxia and Western Digital accounts for more than 32% of the total global NAND chip market, which is close to the leader Samsung.
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