Demand for 3D NAND memory declined in the third quarter due to softening demand for PCs and smartphones. As a result, both the average selling price (ASP) of flash memory and its bit shipments have collapsed, severely impacting the bottom line of 3D NAND manufacturers.
3D NAND makers delivered $13.71 billion worth of memory in Q3 2022, down 24.3% quarter-on-quarter. trend force (opens in new tab)This is because 3D NAND bit shipments were down 6.7% quarter-on-quarter, while average prices were down last quarter as 3D NAND manufacturers had to cut prices to make their products more attractive. This is because it decreased by 18.3% compared to the previous year.
Samsung maintained its leadership position as the No. 1 manufacturer of NAND flash with a market share of 31.4% during the third quarter. On the other hand, 3D NAND revenue decreased 28.1% quarter-on-quarter. Samsung, which sells the best of his SSDs, suffered both bit shipments and ASP declines in the third quarter of 2022.
In contrast, Kioxia was able to grow its market share from 15.6% in Q2 to 20.6% in Q3. Additionally, the company’s 3D NAND revenue totaled $2.83 billion, down just 0.1% quarter-on-quarter, according to TrendForce data. Kioxia’s ASP dropped significantly during the fourth quarter, but the company sold a lot of memory for consumer applications.
NAND flash memory sales of SK Group, which controls SK Hynix and Solidigm, fell 29.8% sequentially to $2.54 billion. As a result, the company’s share fell 18.5% from his 19.9% in the second quarter. Moreover, SK Group’s position declined significantly in the third quarter. This was due to lower shipments of memory and solid state drives for consumer products (primarily sold by SK Hynix) and his enterprise-grade SSDs (primarily sold by Solidigm).
Western Digital and Micron posted similar performances in the third quarter, with sales down 28.3% and 26.2% quarter-on-quarter respectively, with both companies losing some share to Kioxia in the third quarter of 2022.
Smaller 3D NAND makers were the hardest hit in the third quarter, as their sales fell 37.1% qoq. As a result, they now control his 4.6% of the market, down 1% from Q2 2022.
TrendForce expects 3D NAND revenue to decline in the fourth quarter as demand continues to be soft and the reduction in 3D NAND wafer launches is not expected to ease anytime soon. As a result, analysts expect contract 3D NAND prices to fall 20% to 25% quarter-on-quarter due to weak demand and lockdowns in China. Additionally, Samsung’s plans for 3D NAND output beyond Q4 are unknown as it has not announced any cutbacks unlike its rivals.