Semiconductor Supply Shortage Continues... 3Q Enterprise SSD Prices to Rise 15%

[Asia Economy Reporter Suyeon Woo] It is forecasted that enterprise SSD prices will rise by 15% quarter-on-quarter in the third quarter of this year, driven by strong demand. SSD (Solid State Drive) is a data storage device that uses semiconductor memory elements and serves as a high-speed auxiliary storage device replacing hard disk drives (HDD).

On the 1st, TrendForce predicted that enterprise SSD prices in the third quarter of this year will increase by 15% quarter-on-quarter due to high SSD demand and a shortage of upstream IC components. TrendForce stated, "With increased production of Intel Ice Lake and AMD Milan processors, server shipments are expected to continue growing in the third quarter following the second quarter," adding, "North American hyperscalers are also expected to increase the proportion of high-density products in enterprise SSDs."

As remote work due to COVID-19 enters its final phase, companies are expected to increase orders for IT equipment, including servers, in the first half of next year. Not only North American hyperscalers but also companies in China such as Alibaba and ByteDance are increasing their SSD procurement.

TrendForce said, "Global enterprise SSD orders in the third quarter of this year are expected to increase by 7% quarter-on-quarter," adding, "Suppliers are actively increasing the proportion of high-density products to optimize product profitability."

However, from the fourth quarter onward, server shipments are expected to decline, leading to stabilization in enterprise SSD demand and prices. TrendForce added, "As the shortage of SSD components eases, production by enterprise SSD suppliers is expected to increase," and "Enterprise SSD fixed prices in the fourth quarter will stabilize without significant changes compared to the third quarter."

This content was produced with the assistance of AI translation services.