
▲NAND flash market share in the first quarter of 2024 / (Source: TrendForce)
Samsung and SK, the duopoly, occupy the majority of the NAND market
NAND Sales QoQ Double-digit Growth, ASP Increase
As semiconductor demand recovers, the NAND flash market, which had been slow to recover, is starting to pick up again.
According to global market research firm TrendForce, NAND flash prices and shipments rose in the first quarter of 2024, resulting in quarterly revenue increasing 28.1% to $14.71 billion (about 20 trillion won).
TrendForce reported that the adoption of enterprise SSDs in AI servers began in February, which has since led to large-scale orders for NAND flash. In addition, PC and smartphone customers have been increasing inventory levels to manage rising prices.
The NAND flash market share in the first quarter of 2024 was as follows: Samsung Electronics 36.7%, SK Group (Hynix + Solidium) 22.2%, Kioxia 12.4%, Micron 11.7%, WDC 11.6%, and others 5.4%.
Samsung Electronics maintained its industry leader position by posting sales of $5.4 billion, up 28.6% from the previous quarter, thanks to continued inventory buildup by customers and recovery in enterprise SSD orders. TrendForce forecasts that Samsung's revenue will grow by more than 20% in the second quarter due to rising NAND flash contract prices.
SK Group reported Q1 revenue of $3.27 billion, up 31.9% QoQ, driven by brisk smartphone and server orders. Solidigm’s floating gate QLC architecture is said to have helped sustain demand for high-capacity enterprise SSDs. SK Group’s Q2 shipment growth is expected to outpace other suppliers, leading to revenue growth of around 20%.
Kioxia’s Q1 production volume was slightly affected by the previous quarter’s production reduction, with shipments increasing slightly by 7% QoQ. In addition, the company received a sales report of $1.82 billion, up 26.3% QoQ due to the increase in NAND flash prices. Kioxia expects Q2 revenue to increase by about 20% due to increased supply bits and more flexible pricing, which will further increase enterprise SSD shipments.
Western Digital's first-quarter shipments were impacted by a sharp decline in retail demand that began in February, although revenue increased 2.4% quarter-over-quarter to $1.71 billion due to higher NAND flash contract prices.
Despite the uncertain market outlook for PCs and smartphones, Western Digital plans to strengthen its development of enterprise SSD products to drive future growth. However, as the verification time for enterprise products is prolonged, short-term shipment growth is limited, and sales in the second quarter are expected to stagnate.
PC and smartphone customers are already said to have increased their NAND flash inventory levels in the second quarter, leading to more conservative purchases from brand manufacturers.
Meanwhile, NAND flash ASP rose 15% as orders for SSDs for large enterprises surged. TrendForce forecasts that NAND flash sales in the second quarter will increase by about 10% compared to the previous quarter.