Oversupply of NAND! The price of SSD will be greatly reduced. The price drop will not be small-mechanical hard drive, solid state drive, QLC flash memory, SSD

TrendForce said that due to the lack of improvement in demand, NAND Flash output and process progress continued, the market oversupply intensified in the second half of the year, and consumer electronics, including notebooks, TVs, and smartphones, were not prosperous in the second half of the year. It has become a market consensus. Materials The continued rise in inventory levels has become a supply chain risk.

Due to the slow depletion of channel inventory and the conservative attitude of customers to pull goods, inventory problems overflow to the upstream supply side, and sellers are under increasing pressure to sell goods.

TrendForce estimates that due to the rapid deterioration of the imbalance between supply and demand, the price decline of NAND Flash will expand to 8~13% in the third quarter, and the decline may continue into the fourth quarter.

According to the supply chain, while still being supported by orders, demand for solid-state drives has fallen compared to last year’s levels, when working from home was the norm and more people were buying computer hardware.

There are other familiar factors behind the cooling demand for solid-state drives: a global economic downturn and rising inflation are affecting how much people are willing to spend. This has caused companies, especially Chinese smartphone makers, to reduce stocking. As a result, there is an oversupply in the NAND flash market.

Global enterprise SSD purchasing power will grow 10% quarter-on-quarter, driven in part by orders for hyperscale data centers, meaning prices for these SSDs are expected to remain flat.

Declining sales and oversupply mean prices for TLC and QLC NAND wafers continue to decline. They were down 8-13% in the second quarter and are believed to be down 15-20% in the third quarter.

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