A report by market intelligence agency, TrendForce, has revealed that costs of storage drive laptops and computer systems will go up by 50% in 2024.
In line with the report, the value increment relies on the necessity for suppliers to achieve the breakeven level after a rebound from the decline in NAND flash reminiscence costs.
This could make pc SSD drives dearer this yr and in the end result in greater costs for laptops and computer systems.
Business analysts famous that SSD worth will increase have already grow to be noticeable, ending the period of exceptionally inexpensive storage. Nevertheless, TrendForce expects an extra sharp improve in costs as producers can’t recoup their bills and inventories are working out.
What TrendForce is saying
The market intelligence agency within the report said:
- “Main home gamers within the NAND Flash trade point out that NAND Flash suppliers, pushed by the purpose of profitability, will proceed to aggressively increase costs. It’s anticipated that costs might want to improve by over 40% as soon as once more for main producers to interrupt even. To attain profitability, future worth hikes are anticipated to be not less than 50% and even greater.”
Wanting on the international NAND Flash market share in 3Q23, TrendForce famous that Samsung holds the main place with a market share of 31.4%. The second place is held by the SK group, with a market share of 20.2%, adopted by the U.S.-based Western Digital in third place with a market share of 16.9%. The Japanese firm, Kioxia ranks fourth with a market share of roughly 14.5%.
NAND flash manufacturing discount
In line with TrendForce, the trade signifies that as a result of decrease profitability of NAND Flash in comparison with DRAM, worldwide giants are actively decreasing NAND Flash manufacturing.
- “Taking Samsung for example, since September of this yr, the discount in NAND chip manufacturing has expanded to 50% of complete capability, specializing in merchandise with stacked layers as much as 128 layers. The purpose is to speed up destocking and stabilize costs, with plans to progressively improve costs in 2024”
- “TrendForce has indicated that following Samsung’s enlargement of the manufacturing discount to 50%, different suppliers are additionally sustaining a restrained wafer allocation technique. After greater than half a yr of manufacturing discount in some processes and capacities, there’s a structural provide scarcity, offering a bonus for chip producers in worth management.
- “Observing the market within the fourth quarter, there are virtually no low-priced sources obtainable for buy. Nevertheless, consumers nonetheless have a tendency to keep up excessive stock ranges and proceed buying,” it added.
