[News] Low-Price SSDs Disappearing? Three Major Manufacturers Rumored to Increase Prices by 50%

2024-01-05 Semiconductors editor

Low-price SSDs (Solid-state drives) may have become a thing of the past in 2024. The three major memory manufacturers are reportedly pushing up the prices of NAND Flash, leading to rumors of a 50% increase in prices for all SSDs as well. The successive hikes in NAND Flash prices by suppliers are already beginning to impact the end market.

Industry sources cited by ctee have indicated that at the beginning of 2024, there is a continuous stream of news regarding price increases for memory products. However, as of now, new transaction prices have not been observed, and the situation is being closely monitored.

Furthermore, sources cited by ctee also stipulate that, since reaching its lowest point in August 2023, NAND Flash prices have experienced a cumulative increase of approximately 40% to 90%.

Previously, significant losses in NAND Flash led manufacturers to actively reduce production and increase quotes. Currently, manufacturers have yet returned to a break-even condition. It is widely anticipated within the industry that the upward trend in NAND Flash prices will persist into the first quarter of 2024. The aim is to promptly raise prices and achieve a break-even point.

According to TrendForce’s previous estimates, the average quarterly increase in prices for Mobile DRAM and NAND Flash (eMMC/UFS) in the first quarter of 2024 is expected to expand to a range of 18% to 23%. Additionally, it is not ruled out that in a market characterized by limited competition or in situations where brand customers panic and engage in price chasing, the increase in prices could further escalate.

The upward trend in NAND prices has also led to an increase in the prices of storage products in the consumer end market. According to the latest information from the supply chain in China cited by the media outlet mydrivers, it’s reported that SSD products are experiencing their first price hike in nine quarters and manufacturers are planning to continue requesting price increases after 2024 Q1.

An industry source suggests that NAND manufacturers, facing losses, have been actively adjusting prices. Since these manufacturers also produce SSDs for their own brands, their own brands need to follow suit in price increases, potentially influencing the entire market.

Recent rumors have also claimed that the SSDs from memory manufacturers are set to increase by 50%, with some sources suggesting at least a 30% hike. Whether this is an tentative price adjustment or a market-driven price surge prompted by demand remains to be closely observed.

Read more

(Photo credit: Samsung)

Please note that this article cites information from ctee