Total NAND Flash Revenue Falls 16.1% in 1Q23 as Demand Continues to Decline

The NAND Flash market continued to decline in Q1 2023, with total revenue falling 16.1% from the previous quarter. This was due to a combination of factors, including weak demand from major end-use sectors, such as servers, laptops, and smartphones, and ongoing inventory clearance pressures.

Bit shipment volume for NAND Flash in Q1 2023 was 2.1% higher than in the previous quarter, but this was not enough to offset the decline in ASP, which fell 15%. As a result, total revenue for the NAND Flash industry fell to US$8.63 billion in Q1 2023.

The decline in demand for NAND Flash is being driven by a number of factors, including the ongoing chip shortage, which is making it difficult for manufacturers to meet demand for other products, such as smartphones and laptops. Additionally, the rise of cloud computing is reducing the need for on-premises storage, which is another major end-use market for NAND Flash.

TrendForce expects the decline in revenue for the NAND Flash industry to continue in Q2 2023. The research firm forecasts that bit shipment volume will rise 5.2% QoQ, but ASP will continue to fall, resulting in a 7.9% decline in total revenue.

The decline in the NAND Flash market is having a negative impact on all major suppliers. Samsung, SK Group (SK hynix & Solidigm), WDC, and Micron have all seen their revenue fall in recent quarters. In order to address the oversupply situation, these companies are implementing production reduction measures and are also looking to expand into new markets, such as the automotive sector.

The decline in the NAND Flash market is a sign of the changing dynamics in the semiconductor industry. As the industry continues to evolve, it will be interesting to see how NAND Flash suppliers adapt to the new market conditions.

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