Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for your clue delivery! CTOnews.com, September 2, according to the survey report released by TrendForce Jibang Consulting on September 1, the lack of peak season led to the delay of destocking in the second half of the third quarter of 2022. Trading in the NAND flash market has been lukewarm, with buyers in a passive wait-and-see state and tend not to negotiate pricing. Factory inventory pressure has reached a tipping point and manufacturers are bottoming out to close a deal.

The move will lead to a further decline in manufacturer pricing, with Ji Bang Consulting cutting the price of 3Q22 NAND flash wafer contracts again, widening the estimated price decline from 15-20 per cent to 30-35 per cent.

CTOnews.com learned that TrendForce said that in the past two years, the epidemic has driven the digital transformation, and notebook computers and servers have stimulated the rapid growth of NAND flash memory consumption. In order to meet demand, manufacturers have been actively expanding, accelerating the production of more than 128 layers of products.

However, the NAND flash memory market deteriorated sharply in the second half of 2022, and the demand for purchase orders for smartphones and laptops adjusted sharply, indicating that the market was oversupplied. Looking ahead to 2023, the conservative attitude of consumer electronics brands may make it difficult to improve the market next year, stimulating suppliers to seize market share.

If some manufacturers do not reduce production, the possibility of market consolidation again increases. In particular, the number of suppliers has not decreased, the price of NAND flash memory will fluctuate greatly in the long run. At the same time, some manufacturers may find it difficult to keep up with the pace of technology transfer, as the transition to a higher level of production will increase capital expenditure. Therefore, TrendForce believes that this wave of price collapse may be the beginning of market consolidation.

Looking forward to the NAND flash wafer prices in the fourth quarter, contract and spot market wafer prices are facing a collapse as manufacturers have implemented the strategy of maintaining market share at all costs. As a result, TrendForce believes that NAND flash wafer prices could fall by another 20% in the fourth quarter of 2022, and this decline is likely to expand in the shadow of rising inventories and lukewarm demand, as the industry tends to negotiate pricing in the fourth and subsequent first quarters.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.