How big will the rise of SSD be? Enterprise-level SSD contract prices increase by about 18%-23%

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How big will the rise of SSD be? Enterprise-level SSD contract prices increase by about 18%-23%

Posted Date: 2024-01-27

The agency expects PC client SSD contract prices to increase by 15%-20% this quarter, and enterprise-level SSD contract prices to increase by approximately 18%-23%.

According to technology media Tom's Hardware,SSD (Solid State Drive) prices will "skyrocket" later this quarter due to a shortage of key flash memory chips, especially high-capacity consumer products.

"Key flash memory chip" is a NAND package chip composed of multiple NAND devices. It is understood that the M.2-2280 single-sided solid-state drive requires 4 3D NAND devices. Currently, the 2TB and 4TB products of this specification have a higher penetration rate. The NAND chip equipped with this product requires 4 or 8 3D NAND device packages. together to ensure high performance.

But recently, on the one hand, upstream flash memory manufacturers have continued to reduce production on a large scale and slowed down the pace of upgrading process technology. On the other hand, many downstream manufacturers have begun to increase flash memory procurement. According to TrendForce, although the first quarter of 2024 is the off-season for demand , but some buyers are still increasing purchases, and many suppliers have increased their quotations for such chips. It is expected that 3D NAND contract prices will increase by 15%-20% in the first quarter of this year.

In this context, the supply of NAND packaged chips exceeds the demand, and SSD manufacturers cannot obtain sufficient supply, which will naturally be reflected in the price.

According to the report,The full impact of NAND packaging chip price increases and shortages on the supply chain may take two to three months to fully emerge. The price increase of 2TB and 4TB solid-state drives will be even greater. In the next few months, shortages will cause users to Prices of high-end products increased.

Corroborating the views of Tom's Hardware, CITIC Securities previously stated that since the end of August 2023, the price increase on the wafer side has begun to be transmitted to the module side. According to the CFM flash memory market, most of the module products such as SSD, eMMC, and UFS have been Price increases of varying magnitudes occurred.

How big will the rise of SSD be?

TrendForce reports that purchasing volume in the consumer SSD market, especially among PC OEMs, is reaching its peak, driven by the increasing popularity of PCIe 4.0 SSDs. To meet this demand, vendors are increasing the prices of PCIe 4.0 products. This trend is expected to result in a 15%-20% increase in PC client SSD contract prices. Laptop manufacturers are more likely to accept these new rates.

In comparison, the enterprise SSD market is relatively dull, but it is not without new trends. Demand from North American cloud service providers (CSPs) remains tepid, but Chinese CSPs and server brands are offsetting this, keeping the market strong. This activity, combined with vendors' firm pricing strategies, is expected to drive enterprise SSD contract prices up approximately 18%-23% this quarter, according to TrendForce.

Overall, the demand explosion expected by the industry has not yet occurred. This price increase is a response by NAND chip suppliers to the sharp price increases by upstream manufacturers, aiming to reduce their own losses. The future price trend depends on the procurement situation of enterprise-level SSDs. .

Review Editor: Huang Fei

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