On December 7, according to the "Economy", the world's fourth largest NAND Flash memory company, Western Digital, recently issued a price increase notice letter to customers, emphasizing that the next few quarters of NAND Flash products will adopt a cyclical increase method, and the cumulative amount is expected to be 55%. In addition, Western Digital also pointed out that the company's hard disk drive (HDD) products will also review pricing on a weekly basis, and it is expected to be **will** in the first half of next year.
Western Digital pointed out that because the company is currently regulating its production capacity in response to the market supply and demand environment, it is difficult to respond immediately to unplanned demand and orders, so customers are requested to check their order status again and contact the company as soon as possible.
It is understood that Western Digital's price increase letter is mainly aimed at OEM customers related to the two major product lines of HDD and NAND Flash. Due to the current NAND Flash manufacturers actively reducing production, control production capacity to reduce the supply and demand structure, and drive the start of NAND Flash.
Recently, the spot price and contract price of NAND Flash have shown price increases, and HDD prices have also increased since the second half of this year. Previous rumors show that Samsung notified customers in August that it intends to increase the ** of 512GB NAND Flash wafers to 1$60, up from $1 at the beginning of 2023$40 is about 15% up. Subsequently, Micron began to raise the contract price of NAND Flash wafers by about 10% in September. According to the latest research report of market research institute Trendforce, due to the strict control of output by ** merchants, the contract price of NAND Flash rose in the fourth quarter, with an increase of about 8 to 13%.
It is worth noting that at the beginning of November this year, according to South Korea's **Pulse, citing a number of sources in the semiconductor industry, it was revealed that Samsung will raise the NAND flash chip ** by 10% to 20% in the fourth quarter, and will also increase the price by 20% in the first and second quarters of next year, which is far beyond industry expectations. If Samsung really raises prices according to this plan, the increase in the third quarter of next year will be more than 70% before the price increase in this quarter.
The latest report from Gartner, a market research agency, also pointed out that next year will be a "rebound year" for the semiconductor industry, and global semiconductor revenue is expected to rise by 16% year-on-year8% to $624 billion, of which the largest growth driver comes from storage, which is expected to soar 66% in revenue from the storage industry3%, an increase of several times that of the entire semiconductor industry. Among them, this year's NAND flash market due to sluggish demand and oversupply caused by the first revenue will decline by 388% to $35.4 billion, but ** will bottom out in the next three to six months, the industry's operations will improve, and the NAND Flash market revenue is expected to rise by 49% year-on-year next year6% to $53 billion.
Editor: Xinzhixun-Rogue Sword.