Storage giants are once again increasing their price hikes.
According to Taiwan Economic Daily, citing multiple sources in the semiconductor industry, Samsung has decided to increase its NAND Flash chip quotation by 10% to 20% this quarter, and has decided to increase its quotation by 20% quarterly in the first and second quarters of next year, which far exceeds industry expectations.
It is worth noting that Xinda Securities previously quoted industry news that Samsung recently announced the Q4 official price to customers, and the month on month increase in MobileDRAM contract price is expected to expand to 11% -25%; In terms of NAND Flash, UFS4.0 increased by about 2%, while eMCP and uMCP increased by varying degrees, with an average increase of over 20% and a maximum increase of 66%.
Why does Samsung have the confidence to increase prices strongly? Reducing production may be one of the reasons. At the financial report meeting on October 31st, Samsung Executive Vice President Kim Jae-joon bluntly stated, "Samsung's next production reduction actions will be larger than the current scale of DRAM's output reduction
Industry insiders point out that the NAND chip market is currently becoming more active, and customers are gradually returning. As a global leader in storage chips, Samsung is leading the way in raising prices, which will help the overall market quotation develop positively.
At the same time, multiple storage manufacturers have also given quite optimistic expectations.
For example, Qunlian pointed out that the inventory adjustment by OEM customers in the past 6-9 months has come to an end, and the company has received more design in orders.
Storage module manufacturer Weigang stated that with the emergence of significant production reduction benefits from major manufacturers, it is optimistic that storage prices will continue to rise from the fourth quarter of this year to the first half of next year, and will enter a two-year long storage market pattern starting from next year. The market supply will be tight and there will be shortages in the next two years.
TrendForce previously pointed out that the price of NAND chips has been rising since August, and is optimistic that the contract price of enterprise grade solid-state drives is expected to increase by about 5% -10% in the fourth quarter, as suppliers' bargaining attitudes become stronger; In terms of user end solid-state drives, as suppliers' bargaining power improves, high-end and low-end solid-state drive products are expected to rise simultaneously, with contract prices expected to rise by 8% to 13% in the fourth quarter.
In addition, it believes that the overall rise in memory is expected to continue, and it is expected that the contract prices of Mobile DRAM and NAND Flash (eMMC, UFS) will continue to rise in the first quarter of next year. The increase will depend on whether the original factory maintains a conservative production strategy in the future and whether there is substantial buying support for the terminal.
With the continuous control of production by major manufacturers, as well as the reduction of inventory in original factories, terminals, and channels, coupled with the recovery of terminal market demand, the November 1st report of Guojin Securities pointed out that storage chips are expected to start a price rebound in the fourth quarter of this year, opening a new round of upward cycle. As a producer of storage chips and the most important link in the storage market, storage chip manufacturers are expected to benefit the most.