December 2, 2024 – According to data released by market research firm Dram Exchange, general-purpose NAND flash memory prices have been on a downward spiral since September, after being on a plateau from March to August following five consecutive months of increases starting last October. Specifically, NAND prices dropped by 11.44%, 29.18%, and 29.8% from September to November, respectively. This significant decrease has brought the price down from 4.9inAugusttojust2.16, marking a more than 50% decline in general NAND prices this year, reaching the lowest point since August 2015.
In response to this price decline, major NAND manufacturers are adjusting their production strategies. Reports indicate that Japanese memory manufacturer Kioxia (formerly Toshiba Memory) plans to cut back on NAND flash production, and Korean electronics giant Samsung Electronics is also considering similar measures to stabilize the market price.
Previously, companies like SK Hynix, Micron, and Kioxia had already implemented selective production cuts from late 2022 to early 2023 due to reduced demand. Samsung Electronics followed suit in April 2023 with its own NAND production cuts.
Currently, only enterprise-level SSDs used in data centers have maintained stable prices thanks to the growth of AI technology. However, prices for other NAND products have fallen sharply due to decreased demand, primarily driven by the shrinking mobile phone and laptop markets.
Market research institution TrendForce predicts that due to decreased consumer demand for NAND, Samsung Electronics and Kioxia are expected to see a decline in NAND sales in the fourth quarter. In particular, Kioxia’s sales are forecast to drop by more than 10% compared to the previous quarter.
