Alliance Consulting: NAND Flash industry revenue in the fourth quarter of 2023 reached $11.49 billion, an increase of 24.5% from the previous quarter.

According to the TrendForce report, the revenue of the NAND Flash industry in the fourth quarter of 2023 reached $11.49 billion, an increase of 24.5% from the previous quarter. This growth was mainly driven by the recovery of end-of-year promotional sales, as well as the expansion of order momentum in the component market due to price hikes. Shipments were strong compared to the same period last year. Companies continued to release positive outlooks for demand in 2024 compared to 2023, and initiated strategic stocking activities. Looking ahead to the first quarter of this year, with significant improvements in supply chain inventory levels and prices still on the rise, customers are continuously increasing their purchase orders to avoid the risks of supply shortages and high costs. Despite being the traditional slow season, the continuous expansion of order sizes has led to a 25% increase in the average contract price for NAND Flash, prompting TrendForce to forecast a double-digit growth in industry revenue in the first quarter. In the fourth quarter, Samsung experienced the highest revenue growth rate, driven by significant growth in demand for servers, laptops, and smartphones. Even though they did not fully meet customer order quantities, shipments increased by 35% and the average selling price increased by 12%, leading to a revenue increase to $4.2 billion, a growth of 44.8% from the previous quarter. SK Group benefited from the sharp price increase, with revenue reaching $2.48 billion, an increase of 33.1% from the previous quarter. Western Digital saw a 2% decrease in shipments in the fourth quarter, but a 10% increase in average selling price, leading to NAND Flash revenue of $1.67 billion, a 7% increase from the previous quarter. SSD sales in the retail market benefited from price rebounds, leading to significant growth in shipments and historically low inventory levels. Kioxia received stocking orders from PC and smartphone customers, leading to a slight increase in shipments and a revenue of $1.44 billion, an 8% increase from the previous quarter. In 2023, the industry faced a severe oversupply situation, with a nearly 10% increase in prices in the fourth quarter. Micron reduced its supply significantly to improve profits, leading to a more than 10% decrease in shipments and a decline in revenue to $1.14 billion, a decrease of 1.1% from the previous quarter. Micron believes that NAND Flash demand must grow by 15-20% annually and, coupled with continued capacity adjustments, only when there is a balance between supply and demand can the industry have a chance to become profitable.