According to reports, the main supplier of NAND Flash, Kaixia, plans to implement production cuts in December 2024, which is expected to prompt NAND Flash prices to stop falling or even reverse. Market researcher TrendForce noted that although NAND Flash faced challenges in the fourth quarter, the planned production cut by Kaixia could bring a turnaround to the market by easing the oversupply problem, especially as enterprise-class SSD prices are expected to remain stable.

With the completion of data center construction, cloud service providers (CSPS) are likely to increase their investment in enterprise SSDS, further driving demand for enterprise SSDS above 16TB. Although the NAND Flash market spot price and contract price decreased by 5% to 10% quarter by quarter in the short term, the NAND Flash market is expected to return to supply and demand balance in 2025, driven by the effect of original production reduction and continued strong demand for high-capacity eSSD in AI servers and general-purpose servers.

In terms of revenue, TrendForce data shows that global NAND flash industry shipments fell 2% sequentially in the third quarter of 2024, but average selling prices rose 7%, driving overall revenue to $17.6 billion, an increase of 4.8% sequentially. NAND flash pricing trends diverged across application segments in the third quarter, with strong demand for enterprise-grade SSDS driving average selling prices up nearly 15%, while customer-grade SSD prices saw only modest increases amid reduced orders.

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