With the development of 5G networks and cloud computing, as well as the popularity of devices such as smartphones, laptops, and game consoles, the global flash memory market demand is expected to recover in 2023. On March 23, Cheng Weihua, Chief Operating Officer of Changjiang Storage, stated that it is expected that global flash memory demand will warm up and supply and demand will balance in 2023.
According to the latest survey by global market research institute TrendForce Chibang Consulting, since the second half of 2022, the NAND Flash market has been facing a demand headwind, and the supply chain has been actively destocking inventory to cope with the decline in market demand. This has led to a decline in the NAND Flash contract price of between 20% and 25% in the fourth quarter.
In the first quarter of 2023, Jibang Consulting pointed out that the production lines of Armor Knight and Meguiar will continue to have low load, and Western Digital and SK Hynix will follow up with the production reduction, which has the opportunity to alleviate the current oversupply situation. The average price decline of NAND Flash will also converge to 10-15%.
The storage market in 2022 experienced a "cold winter", but after a year of adjustment and development, storage manufacturers have generally been optimistic about the storage market outlook in 2023 in their latest financial reports. At the same time, the prices of storage devices such as NAND Flash and DRAM have gradually stabilized, bringing more business opportunities to storage manufacturers.
Although macroeconomic uncertainty is expected to persist, Samsung expects demand to begin to recover in the second half of the year, mainly in the HPC and automotive industries.
SK Hynix said that although the downturn in the first half of this year continues to deepen, overall, it is expected that the market situation will become better in the second half of this year. In addition, SK Hynix predicts that IT companies will increase the use of memory semiconductors whose prices have dropped significantly compared to the industry's high points, and market demand will gradually rebound.
Meguiar expects the trend in memory demand to gradually improve in the coming months, as customer inventory levels will improve, new CPU platforms will be launched, and China's demand will begin to grow as the economy reopens.
Armor Xia pointed out that although the economic outlook is full of uncertainty, the market demand for PCs and smartphones is still weak, and the short-term NAND demand has significantly declined. However, with the comprehensive restart of the Chinese economy this year, customer inventory levels have decreased quarter by quarter. Armor Xia expects market demand to recover in the second half of this year, and in the long run, he is still confident in the growth potential of the NAND market.
In summary, the future storage market will be a market full of opportunities and challenges. Storage manufacturers need to continuously innovate and improve their technical level in order to remain invincible in the fierce market competition.