The demand for Chonbang industries is expected to continue declining through the first half of this year, leading to a persistent fall in NAND Flash prices and sales. However, from the second half of the year, the market is likely to gradually recover due to production cuts and price stabilization.
According to TrendForce, the average selling price (ASP) of NAND in the fourth quarter of last year fell by 4% compared to the previous quarter. Bit shipments decreased by 2%. Consequently, NAND sales for manufacturers during the same period recorded a 6.2% decline to $16.52 billion (approximately 24 trillion won). TrendForce noted, 'The ongoing inventory adjustments by PC and smartphone manufacturers have led to supply chain corrections, causing the NAND market to face downward pressure in the fourth quarter.'
In the fourth quarter NAND market, all top five memory companies experienced a decline in sales. Samsung Electronics maintained its number one position, but due to decreased demand for home appliances, sales dropped by 9.7% to $5.6 billion. Its market share fell by 1.3 percentage points to 33.9% compared to the previous quarter (35.2%). SK hynix recorded sales of $3.391 billion, a 6.6% decrease from the previous quarter, maintaining its second position with a market share of 20.5%.
Kioxia (Japan) and Western Digital (U.S.) achieved sales of $2.657 billion and $1.876 billion, respectively, ranking third and fifth. Micron (U.S.) recorded a sales drop of 9.3% in the fourth quarter, totaling $2.275 billion, remaining in fourth place in market share.
TrendForce projected, 'While manufacturers are actively reducing production, they cannot avoid the traditional off-season effect.' In the first quarter, the likelihood of NAND sales decreasing by up to 20% is high due to sluggish inventory restocks by end customers, reduced order quantities, and a drop in contract prices.
However, from the second half of the year, the possibility of market rebound is raised as price normalization is achieved through production cuts. TrendForce stated, 'Samsung Electronics plans to focus on corporate SSD development and adjust its production plans, while SK hynix will also flexibly adjust production levels according to demand fluctuations.'