Core Viewpoint - The article discusses the anticipated increase in NAND Flash prices due to major manufacturers reducing production, leading to a supply shortage that may last until 2026 [1][2]. Group 1: NAND Price Increase - NAND Flash average contract prices are expected to rise by 5% to 10% in Q3, driven by reduced production from key manufacturers like Micron and SanDisk starting in the second half of 2024 [1]. - The price surge is particularly significant for products below 512Gb, as these lower-margin products are prioritized for production cuts [2]. Group 2: Supply Chain Dynamics - Major NAND manufacturers, including Samsung, SK Hynix, Micron, Kioxia, and Western Digital, have initiated production cuts of 10% to 15% starting in the first half of 2025, contributing to the tightening supply [1]. - The overall output of NAND Flash is declining, prompting suppliers to shift focus towards higher-margin products, which is expected to result in a price increase of 8% to 13% for 3D NAND (TLC & QLC) wafers in Q3 [2].

Core Viewpoint - The NAND flash memory market is experiencing a revenue decline of 6.2% in Q4 2023, primarily due to weak consumer demand, with expectations of a further 20% drop in industry revenue in Q1 2024 [1][2]. Group 1: Market Trends - The average selling price (ASP) of NAND flash memory has decreased by 4% quarter-over-quarter, while overall shipment volume has declined by 2% [1]. - By the end of 2024, global NAND flash revenue is projected to be $16.52 billion, reflecting a 6.2% decrease from the previous quarter [2]. - Manufacturers are expected to clear excess inventory, which will contribute to further price declines in NAND flash memory [1]. Group 2: Manufacturer Performance - Major NAND flash manufacturers are facing revenue declines, with Samsung's market share at 35.2% despite a nearly 10% revenue drop compared to Q3 2023 [3]. - SK Hynix experienced a 6.6% revenue decline, while Micron faced a 9.3% drop, and Kioxia and Western Digital saw declines of 0.2% and 0.4%, respectively [4]. - Many manufacturers are shifting focus towards enterprise SSDs to mitigate losses, with Samsung and SK Hynix addressing production imbalances relative to market demand [4]. Group 3: Future Outlook - The industry anticipates improvements in the second quarter of 2024 as production aligns more closely with demand [2]. - Kioxia is adopting a more technical approach by enhancing data transfer speeds and increasing the number of 3D NAND layers, as seen in their latest 10th generation 332-layer V-NAND flash [4]. - Micron plans to cut costs in its NAND flash business while continuing to offer high-capacity enterprise SSDs to boost profitability [4].