NAND Flash Revenue Up Despite Lackluster Demand, Supply Squeeze Expected in Q3

The NAND Flash market saw revenue growth of 7.4% in Q2 2023, reaching US$9.338 billion, despite lackluster demand and a supply glut. This was due to a combination of factors, including shrinking inventories in PC and mobile markets, and an uptick in the storage capacities of consumer electronics devices.

Samsung and Kioxia were the only players to register revenue shrinkage in Q2, with their results weighed down by the fall in average selling prices (ASPs). Micron, on the other hand, outpaced its peers with a 27.6% revenue spike, thanks to strong demand for client SSDs.

Analysts expect a supply squeeze in Q3 2023, as Samsung and other NAND Flash makers begin to rein in production. This could lead to price hikes and boost revenue growth. However, high inventory levels are expected to continue to suppress the overall recovery of the NAND Flash industry in 2023.

Implications for Society and the SMT Industry:

The NAND Flash market is a key indicator of the overall health of the electronics industry. The recent revenue growth, despite lackluster demand, suggests that the industry is still resilient. However, the high inventory levels and expected supply squeeze in Q3 could pose some challenges.

The NAND Flash market is also closely linked to the SMT (Surface Mount Technology) industry. SMT is the process of mounting electronic components onto the surface of a circuit board. NAND Flash memory chips are one of the most important types of electronic components used in SMT.

The growth of the NAND Flash market is driving demand for SMT services. This is because NAND Flash chips are becoming increasingly ubiquitous in a wide range of electronic devices, including smartphones, laptops, tablets, and servers.

The NAND Flash market saw revenue growth in Q2 2023, despite lackluster demand and a supply glut. This was due to a combination of factors, including shrinking inventories in PC and mobile markets, and an uptick in the storage capacities of consumer electronics devices.

Analysts expect a supply squeeze in Q3 2023, which could lead to price hikes and boost revenue growth. However, high inventory levels are expected to continue to suppress the overall recovery of the NAND Flash industry in 2023.

The growth of the NAND Flash market is driving demand for SMT services. This is because NAND Flash chips are becoming increasingly ubiquitous in a wide range of electronic devices.