NAND Sales Down 16% in Q1... Will Samsung's Production Cut Impact Show in Q2?

TrendForce "Q2 NAND Market Revenue Expected to Decrease by 7.9%"

Sales in the NAND flash market in the first quarter decreased by 16.1% compared to the previous quarter. Although the sales decline is expected to continue in the second quarter, the reduction in production by Samsung Electronics is anticipated to partially mitigate the decrease in market sales.

Market research firm TrendForce announced on the 1st that the NAND market sales in the first quarter recorded $8.63 billion, down 16.1% from the previous quarter. Despite aggressive price cuts by NAND suppliers leading to a 2.1% increase in NAND bit shipments compared to the previous quarter, the average selling price (ASP) fell by 15%.

Due to the sluggish semiconductor market, all major players in the market saw a decline in NAND sales in the first quarter. However, the extent of the sales decrease varied, resulting in shifts in market share among companies.

Samsung Electronics maintained its top position with a market share of 34.0%, up 0.2 percentage points from the previous quarter. Japan's Kioxia rose to second place with a 21.5% market share, up 1.6 percentage points. SK Hynix ranked third with a 15.3% market share, down 1.7 percentage points. Western Digital (15.2%) and US-based Micron (10.3%) also experienced slight declines in market share.

TrendForce explained, "Sales of SK Hynix and Western Digital decreased by more than 20% compared to the previous quarter," adding, "SK Hynix's contribution from solid-state drives (SSD), a major revenue source, declined due to weak demand in the PC market."

TrendForce expects that in the second quarter, the production cut by Samsung Electronics could increase purchasing intentions among NAND market demanders such as module manufacturers and PC original equipment manufacturers (OEMs). However, since a large inventory still remains in the market, the phenomenon of increasing bit shipments alongside falling ASP is expected to continue. NAND market sales in the second quarter are forecasted to decrease by about 7.9% compared to the first quarter.