2023-12-7
Western Digital has informed customers that prices for NAND flash memory may rise by up to 55% in the coming quarters, according to industry sources.
The last few months have seen some incredibly low prices on memory and storage products, particularly SSDs. That’s great for consumers but not so for manufacturers, who have been struggling to turn a profit. That looks set to flip. The prices of DRAM and NAND chips are on the rise, and that means the bargain bonanza is likely coming to an end.
According to a report , manufacturers have been cutting back on production in an effort to clear excess inventories and increase profitability. That means memory spot prices are increasing and in time, these costs will be passed onto consumers.
The price of NAND flash memory in particular has dramatically risen. DRAMeXchange tracks chip prices, and according to its data, the price of 512GB TLC NAND has nearly doubled over the last six months from around $1.30 to as high as $2.75 during the last trading session. Digitimes predicts this price to rise further into the $3.20 to $3.60 range, and even then, it refers to these prices as a breakeven price. Ouch. The days of 1TB SSDs for under $50 are surely coming to an end. For now at least.
Samsung has planned a significant price bump for NAND Flash memory used in SSDs in the upcoming quarters in an attempt to rescue the company from dwindling financial conditions.
Samsung’s Decision to Increase NAND Pricing Means That Consumer & Enterprise SSDs Will See Price Increases In The Coming Quarters
Trend Force reports that the decision by Samsung’s memory division was “unpredictable” since merely a 10% price bump was previously estimated, but the Korean giant is now implementing a 20% “quarterly increase”, with the aim of setting the trend of NAND pricing in the industry in order to overcome the deteriorated revenue of the past quarters. Now the NAND pricing fluctuation has already been put into effect since August, with suppliers revising their contracts.
RELATED STORY Samsung Electronics Planning a Massive NAND Flash Price Hike Starting Next Month
Now how would the NAND pricing increase affect an average consumer? Well, for starters, one should expect a gradual price increment in consumer SSDs, since they utilize NAND chips as a primary component. While we aren’t aware of the extent of the rise in pricing, it is expected to be somewhere around 8% to 13%. However, the biggest impact is expected to be seen in the mobile industry, where it is expected to experience a decent 10% to 15% rise in NAND Flash pricing, which might suggest that consumer products in the mobile industry might see a rise in prices as well.
Such industry actions were quite predictable, given that it is the only way to counter the economic downturn being faced by the sector. Samsung and others have tried various methods such as cutting down production and slashing NAND product pricing, however, none have seemed to work out. With the demand from the server industry due to AI developments, along with Samsung’s decision to raise NAND prices, we might see the situation improving in the upcoming quarter.
If you are still in dispute about whether to get an SSD upgrade, now would probably be the right time since the prices could see a “significant” rise, once the entirety of the supply chain witnesses the NAND price increment.
It’s not a stretch to assume there might be shortages in 2024. Assuming PC demand picks up, then relatively low production levels will increase spot prices further. New waves of PC, smartphone and enterprise products will drive demand, and if production remains restricted… Well that’ll be good for manufacturers, but consumers will end up paying more.
So, if you’ve been contemplating buying a new SSD or memory kit but didn’t get around to it over the Black Friday weekend, you might want to give some thought to grabbing one sooner rather than later. There are still some bargains to be had. Sadly for consumers, these deals are unlikely to be bettered in 2024.
综合台湾经济日报、台湾工商时报12月7日报道，全球第四大存储型NAND Flash供应商西部数据对客户发出涨价通知信，强调未来几季NAND芯片产品价格采取周期性调涨价格方式，预期累计上涨55%，此波NAND芯片报价涨势锐不可挡。此外，西部数据还指出，公司硬盘（HDD）产品会每周审查定价，预计明年上半年价格会上涨。
现阶段，业界多看好报价止跌回升，相较目前多由供应商与客户个别通知调整报价，西部数据对客户发出涨价信，且预计涨价幅度惊人，开业界全面大涨价的第一枪。
尽管科技业传统旺季步入尾声，存储业者指出，产业淡季不淡，西部数据报价恐出现“周周涨”的热络景象，将迫使OEM客户提早下单，有利现货价及明年首季合约价同步调涨。
西部数据指出，由于该公司现阶段正在针对市场供需环境，调控其生产能力，对于非计划性的需求及订单，较难以立即反应，因此，请客户能再次检视自己的订单状况，及早跟该公司联络安排。
据业界了解，西部数据这封信，主要是针对与两大产品线HDD、NAND Flash有关的OEM客户，所发的通知，由于国际大厂积极减产，控制产能以保持价格，带动NAND价格跌深反弹，近期现货价及合约价皆呈现涨价，而HDD也从今年下半年开始涨价。
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