NAND Flash Revenue Surges by 24.5% in 4Q23, Samsung Leads Growth

The Nand flash industry revenue increased 24.5 percent to $11.49 billion in the fourth quarter of 2023, compared to the previous quarter, according to a report by TrendForce.
Nand flash leaders in Q4 2023 TrendForce report

This surge in NAND Flash industry revenue is attributed to a stabilization in end-demand, driven by year-end promotions, coupled with an expansion in component market orders, resulting in robust bit shipments compared to the same period last year. Additionally, the corporate sector’s positive outlook for 2024 demand and strategic stockpiling further fueled this growth.

Despite traditionally being an off-season, the NAND Flash industry is anticipated to continue its revenue growth in the first quarter of 2024, with an expected increase of another 20 percent.

This anticipation is supported by significant improvements in supply chain inventory levels and ongoing price rises, as clients accelerate their orders to mitigate potential supply shortages and rising costs. The expansion of order sizes is projected to drive NAND Flash contract prices up by an average of 25 percent.

Samsung emerged as a frontrunner in the fourth quarter, experiencing substantial growth driven by increased demand across servers, notebooks, and smartphones. Despite not fully meeting customer orders, Samsung witnessed a 35 percent quarter-on-quarter surge in bit shipment volume, coupled with a 12 percent increase in average selling price (ASP), resulting in a significant 44.8 percent quarter-on-quarter revenue growth to $4.2 billion.

SK Group achieved a 33.1 percent revenue jump to $2.48 billion, benefiting from significant price recoveries in the market.

Western Digital witnessed a slight 2 percent dip in shipment volume but managed a 10 percent increase in ASP, leading to a 7 percent revenue increase to $1.67 billion for its NAND Flash division.

Kioxia reported modest shipment growth and an 8 percent revenue increase to $1.44 billion in the fourth quarter, driven by PC and smartphone client orders.

Micron experienced a more than 10 percent quarter-on-quarter decrease in bit shipments and a 1.1 percent revenue decrease to $1.14 billion, as it significantly reduced its supply to improve profitability.

Micron anticipates a 15–20 percent annual increase in NAND Flash demand bit growth for the year, underscoring the importance of ongoing capacity adjustments to achieve a balance between supply and demand for sustained profitability in the industry.