1Q NAND Prices Down 15%... "Decline Will Narrow Amid Production Cuts"

NAND ASP Decline of 20-25% in Last Quarter of Last Year

[Asia Economy Reporter Kim Pyeonghwa] There is a forecast that the average selling price (ASP) of NAND flash in the first quarter of this year could decrease by 10-15% compared to the previous quarter. Due to the unprecedented semiconductor market downturn, NAND suppliers have started to cut production, leading to an analysis that the ASP decline could be smaller than the previous quarter's 20-25% drop.

On the 5th, market research firm TrendForce announced its NAND ASP forecasts for the fourth quarter of last year and the first quarter of this year.

TrendForce noted that in the fourth quarter of last year, prices of enterprise solid-state drives (SSD), a NAND product, fell sharply by 23-28% compared to the previous quarter, resulting in an estimated 20-25% decrease in NAND ASP compared to the third quarter of last year.

Although enterprise SSD prices are expected to decline significantly by 13-18% in the first quarter of this year compared to the previous quarter, TrendForce explained that the situation is better than in the fourth quarter of last year. The NAND ASP for the quarter is forecasted to drop by 10-15%.

TrendForce stated, "NAND suppliers have aggressively cut production after witnessing a sharp price collapse in the overall NAND market during the second half of last year," adding, "Since NAND has greater price elasticity on the demand side than DRAM, the price collapse is expected to end sooner than that of DRAM."

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