NAND flash memory prices stabilize and are expected to warm up in Q2 next year

Since the third quarter, the storage market that "shined" at the beginning of the year has been declining. Recently, pan Jiancheng, CEO of the group, said that "NAND Flash in the second quarter of 2022 is expected to warm up", which has brought some "warmth" to the market. Analysts said that in the future, data centers, AI and vehicle-related fields will bring more demand to NAND. However, it is worth noting that although the storage market demand is huge, the "right to speak" of mainland manufacturers is still weak.

After nearly half a year of lows, the unit price of NAND flash memory finally stabilized in December, but this may not be a signal that the market is going to be good. "The current NAND flash memory market is still in an oversupply stage, and the recent recovery in PC demand has slightly improved the oversupply situation, but it is not enough to change the status quo." Jibang Consulting analyst Ye Maosheng said.

However, with the gradual growth of emerging segments, there is still a great demand for memory, and the industry is generally optimistic about the future market. Ye Maosheng said that at present, mobile phones, notebook computers, etc. are still the mainstream applications of NAND flash memory, but throughout the future, the proportion of cloud-related needs including data centers, AI and vehicle-related fields is expected to expand year by year.

Nowadays, driven by emerging industries such as automotive electronics and 5G, China has become the largest application of NAND flash memory. According to Yule data collation, China accounts for about 37% of the global NAND chip market, which has exceeded 31% of the United States. Contrary to the ultra-high demand, China's current supply capacity is insufficient, accounting for only 4% of the world, which means that there is still nearly ten times more space for the domestic market to achieve a balance between supply and demand.

(Proofreading/Jouvet)