The NAND Flash industry witnessed a significant shift in Q3 2023, with a 2.9% increase in revenue, reaching USD 9.229 billion. This change was mainly due to Samsung’s strategic production reduction. Initially, uncertainty about end-user demand and a less promising peak season led buyers to be conservative. However, Samsung’s production cuts triggered a shift towards a more aggressive acquisition strategy, stabilizing and increasing NAND Flash contract prices by the end of the quarter.
Samsung Maintains Strong Performance
Samsung stood out in the market, maintaining solid performance. Despite slow demand in the server sector, its focus on consumer electronics, especially high-capacity products for PCs and smartphones, boosted its revenues. In Q3, Samsung managed to stabilize its NAND Flash revenue at USD 2.9 billion, despite a 1-3% decrease in shipped bits, thanks to a 1-3% increase in the average selling price.
Varied Performances Among Competitors
Kioxia and Micron saw their revenues decline this quarter, while SK Group and WDC experienced significant increases. Kioxia faced an 8.6% drop in revenue, attributed to delays in orders from U.S. smartphone brands. Micron maintained its bit shipments, but a 15% fall in average selling price reduced its revenue by 5.2%. On the other hand, SK Group and WDC benefited from increased demand in consumer electronics, allowing them to significantly boost their revenues.