Phison Electronics chief executive KS Pua said at a recent conference that further NAND price cuts were not viable and warned that suppliers could go bankrupt if the market doesn’t recover. . Despite difficult market conditions, Phison remains focused on developing his NAND controllers and continues to invest heavily in research and development. Digi Times report
By some estimates, major 3D NAND makers Kioxia, Micron, Samsung, SK Hynix, and Western Digital had to cut prices on ICs already in production, so they could cut $10 billion in flash memory. lost more than Pua argued that further price cuts were unfeasible and warned that some suppliers could face bankruptcy if prices continued to fall, but 3D’s decision to buy flash memory You didn’t elaborate on whether you expect NAND manufacturers or SSD suppliers to go bankrupt.
Phison’s chief also suggests that 3D NAND makers are likely to cut production further to stabilize or even raise prices. In particular, Pua sees his Micron’s decision to stop cutting NAND prices as a joint effort among suppliers to stabilize the market. Developing the best controller for his SSD available today, his Phison maintains a long-term target of 27% (+/- 3%) gross margin while continuing to expand the market. We are planning to refrain from future price reductions. share.
Phison’s first quarter revenue was NT$10.078 billion ($328.64 million), down 18% from the previous quarter. However, by reducing low-margin products and improving the product mix, the company’s gross profit reached his NT$3.22 billion, with a profit margin of 31.78% of his.Unfortunately for Phison, the company booked his NT$550 million loss from the investment hosin global electronicsa supplier of SSDs and other NAND and DRAM based products.
Phison’s chief executive expects NAND supplier losses to continue through the second quarter of 2023. To this end, the company continues to invest heavily in research and development, allocating more than 80% of his annual expense budget to research and development. KS Pua reportedly said he increased investment in future products by 20% while some of his competitors are cutting R&D spending.
