The NAND flash market, which experienced a significant contraction last year due to a slowdown in the Information Technology (IT) market, is poised for a sharp recovery this year, bolstered by increasing demand for Artificial Intelligence (AI).

According to industry sources on April 15, TrendForce, a Taiwanese market research firm, reported last month that sales in the NAND flash market are expected to grow by 63.2% this year to US$62.04 billion compared to last year.

TrendForce had initially forecast in November of last year that NAND market revenue would rise by 38.2% in 2023. However, about four months later, the projected growth rate was revised upwards by 25%.

The average selling price of NAND flash is also on the rise. When converted to a capacity of 8 gigabits (Gb), the price of NAND flash is predicted to increase by 47.1% from last year to US$0.078.

Samsung Electronics and SK hynix, which are the world’s top two NAND flash manufacturers, have also initiated improvements in their financial performance by raising NAND prices by more than 20%. Samsung Electronics has plans to start mass production of its 280-layer V-NAND flash within the year, and is also transitioning its Xi’an plant from a 128-layer to a 236-layer NAND line.

By: DocMemory
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