3D NAND sales plummet across the globe as demand falls

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Demand for 3D NAND reminiscence dropped sharply through the third quarter of 2022, inflicting the general NAND manufacturing trade’s income to drop 24.3% quarter-over-quarter, in accordance to research (opens in new tab) from market intelligence agency TrendForce.

The NAND Flash trade recorded complete income of round US$13.71 billion for 3Q22, which Trendforce linked to below-expectation numbers by way of total shipments of finish merchandise, akin to shopper electronics, workstations, and servers, linked to a usually pessimistic financial outlook and decrease capital expenditures from companies.

3D NAND shipments dropped 6.7% through the quarter as per the analysis, however this then led to a drop in common costs of 18.3% through the interval, as producers regarded to scale back costs as a part of efforts to make their merchandise extra interesting. 

What’s 3D NAND?

3D NAND is a wide range of non-volatile flash reminiscence during which reminiscence cells are layered vertically on prime of one another, in distinction with 2D NAND, which has only one reminiscence cell.

Who took the hit?

This decline wasn’t felt equally amongst producers. 

South Korean {hardware} big SK Group’s income slipped by 29.8% quarter-over-quarter to $2.54 billion, inserting it quantity three within the rating of NAND reminiscence producers.

Samsung remained on the prime of the totem ballot of NAND producers with a 31.4% market share, shifting $4.3 billion of {hardware} for the interval, regardless of gross sales declining 28.1% quarter-over-quarter.

Consistent with the broader trade decline, Western Digital noticed its income fall by 28.3% QoQ to $1.72 billion, whereas Micron registered a 26.2% income drop to $1.69 billion.

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The market’s outlook stays pessimistic, not less than for the close to future in accordance with TrendForce. 

The analyst agency predicts that on account of excessive stock and falling costs, the NAND Flash trade will submit an additional decline of virtually 20% in its complete income for the fourth quarter.

Trendforce predicts excluding Samsung, suppliers are set to be extra cautious in planning output, and can look to “restore steadiness” to supply-demand dynamics as rapidly as attainable, which may embody measures akin to slicing wafer enter and decelerating the tempo of expertise migration.

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