According to Taiwanese media reports, industry sources have revealed that NAND flash prices will fall further in the second half of 2022 as suppliers are under increasing pressure to deal with excess inventory.
NAND flash chip suppliers are now facing four to five months of inventory, the sources noted. Chip prices will fall rapidly in the second half of this year, with quarterly price reductions reaching nearly 20 percent.
NAND flash prices are likely to continue to decline through the first half of 2023, sources said. Suppliers are now turning cautious on data center demand, and overall end-market demand remains sluggish.
In addition, sources noted that SSD inventories are piling up across the PC supply chain. Brand-name vendors such as Asus Computer have had high inventories since the second quarter and continue to adjust orders for SSDs and other components downward.
According to the sources, NAND flash chip suppliers are still reluctant to limit production or adjust upcoming capacity expansion plans, despite a rapid slowdown in customer orders. This is because NAND flash prices have not yet fallen below their variable costs, and the size of their respective operations and volume performance varies.
However, KS Pua, CEO of Qunar Electronics, said in a previous report that the NAND oversupply situation is unlikely to ease by the end of 2022, but NAND flash suppliers may seriously consider cutting production in the fourth quarter if market prices continue to fall.
Editor: Huang Fei
