Buoyed by expanded investment in AI data centers, export prices for enterprise SSDs (eSSDs) hit a record high. However, as high-value products for AI servers lead the market, some note that this is obscuring a slowdown in the price gains of general-purpose NAND. The industry says the strength in eSSD prices may be seen as a recovery across the NAND market, but general-purpose NAND still faces supply pressure, so it is necessary to view the market by product category.
According to tariff office import-export trade statistics on the 4th, the export price for SSDs in July was $25,072 per kilogram, up 19% from the previous month, marking a record high since the related statistics began. In contrast, the export price for flash memory (NAND) was $61,751 per kilogram, down 1% from the previous month.
The tariff office counts NAND flash chips and SSDs as separate items. While NAND is a memory semiconductor mounted in smartphones, PCs and servers, SSDs are finished goods storage devices made using NAND. In particular, enterprise SSDs supplied to AI data centers have higher capacity and performance than general consumer SSDs, so their average unit price is also higher.
The industry views the latest rise in SSD export prices as driven more by a product mix shift stemming from greater shipments of high-capacity eSSDs for AI servers than by simple price hikes. The tariff office's export price is calculated by dividing export value by net weight, so it can rise not only with product prices but also when the share of high-value products increases. With investment in AI data centers expanding, the share of high-capacity eSSD shipments has steadily grown, lifting average SSD prices as well.
An industry official said, "With expanded investment in AI data centers, shipments of enterprise SSDs are steadily increasing," and added, "The latest rise in SSD export prices is driven more by a product mix shift due to a greater share of high-capacity eSSDs than by simple price hikes."
By contrast, the general-purpose NAND market is showing a different temperature from eSSDs for AI servers. Demand for smartphones and PCs is improving from last year, but the pace of recovery is limited, and as manufacturers continue process transitions, bit supply is increasing, fueling ongoing concerns about supply pressure and oversupply centered on general-purpose products. While eSSDs for AI servers are driving growth in the NAND market, the supply-demand conditions for general-purpose products are relatively weak, so observers say the two markets should be viewed separately.
Market research firm TrendForce also cites eSSDs for AI servers as the key growth driver for the NAND market this year. With expanded investment in AI data centers, demand for enterprise SSDs is solid, while purchasing in consumer markets such as smartphones and PCs remains conservative, so the rise in general-purpose NAND prices is expected to be limited. Some in the industry also say the strength of eSSDs for AI servers is creating an "optical illusion" that obscures the slowdown in the general-purpose NAND market.
Memory companies' business strategies are also being reshaped around enterprise products. Samsung Electronics, in its recent second-quarter earnings release, said it will expand an AI-centered product mix as its NAND strategy for the second half and strengthen supply of PCIe Gen6 enterprise SSDs and AI server KV (Key-Value) cache SSDs. SK hynix, together with Solidigm, is expanding its lineup of enterprise SSDs based on high-performance TLC and large-capacity QLC to meet demand from AI data centers.
An industry official said, "Because prices and shipments of eSSDs for AI servers are so strong, the overall NAND market can look good," adding, "But for general-purpose NAND, consumer demand recovery is limited and supply pressure remains, so it is necessary to view the two markets separately."