TrendForce's latest research paints a vivid picture: Q2 saw the NAND Flash market still grappling with lackluster demand and being significantly outpaced by supply. The ASP of NAND Flash also took a hit, tumbling 10-15%. Nevertheless, there was a silver lining as bit shipments grew by 19.9% QoQ from a low baseline in 1Q23. To sum up, the Q2 landscape of the NAND Flash sector witnessed a 7.4% QoQ growth in revenue, reaching US$9.338 billion.

From Q2, Samsung began reining in production with a further squeeze expected for the third quarter. With inventories set to thin out, price hikes loom on the horizon, possibly offering a remedy to the chronic supply-demand imbalance. Yet, a crowded supplier landscape in the NAND Flash sector means that many players, faced with hefty inventories, will likely continue aggressive sales into Q3. Forecasts suggests a deceleration in ASP decline for NAND Flash products in Q3 to 5-10%. Riding the stockpiling momentum for the high season, bit shipments are set to rise, propelling Q3 revenue growth past the 3% threshold.

Recently, the spot market for NAND Flash chips has seen a rise in active price inquiries for certain products, a movement driven by successful increases in wafer contract prices. TrendForce reports this uptick primarily stems from negotiations in late August between NAND Flash suppliers and key Chinese module makers. These discussions led to a new wafer contract that successfully boosted the price of 512 Gb wafers by approximately 10%.

Other suppliers have also raised prices for their comparable products, signaling a shift in supplier sentiment: they are now less inclined to finalize deals at lower prices. This change has contributed to a short-term surge in the wafer spot market. Nevertheless, whether this surge in procurement is supported by actual end-user demand remains uncertain, as these orders have arisen in reaction to adjustments in supply-side pricing.

TrendForce research reveals that, due to the impacts of high inflation and economic downturn, CSPs are adopting more conservative strategies when it comes to capital expenditure and consistently reducing their annual server demand forecasts. Currently, CSPs in China have reported a decline in cloud orders compared to last year, leading to a subsequent decrease in annual procurement volumes for enterprise SSDs. In North America, some clients have postponed mass production timelines for new server platforms while ramping up investments in AI servers. These factors have resulted in enterprise SSD orders falling below expectations. Consequently, global enterprise SSD revenue hit an all-time low in the second quarter, totaling just $1,500 million—a QoQ decrease of 24.9%.

Demand for AI servers remains strong in the third quarter, while orders and shipment momentum for general-purpose servers have yet to show signs of recovery. This continues to put pressure on the purchasing volume of enterprise SSDs, and annual bit volume is expected to be lower than last year. Meanwhile, vendors have once again reduced capacity utilization to slow down inventory growth. Server customers still maintain high inventory levels, and their purchasing momentum remains insufficient. This is expected to lead to an approximate 15% QoQ decline in the average price of enterprise SSDs in the third quarter, which may further result in a lackluster revenue performance for the peak season.

KIOXIA America, Inc. today announced that its CD8P Series data center SSD has received a Flash Memory Summit "Best of Show" award in the "Most Innovative Memory Technology" category. These awards recognize the most significant products and companies worldwide within the flash memory and solid-state storage industries.

"We are proud to recognize KIOXIA for their unwavering commitment to advancing flash memory," said Jay Kramer, Chairman of the Awards Program and President of Network Storage Advisors Inc. "KIOXIA was the first vendor to offer drives designed with PCIe 5.0 NVMe 2.0 interface technology. The new KIOXIA CD8P drives continue the company's momentum by delivering the high performance and low latency required by next-generation digital enterprise and data center infrastructures."

KIOXIA America, Inc. today announced the addition of the KIOXIA CD8P Series to its lineup of data center-class solid state drives (SSDs). KIOXIA CD8P drives are well-suited to general purpose server and cloud environments that can take advantage of PCIe 5.0 (32 gigatransfers/s x4) performance. These data center applications can generate complex mixed workloads spread across large scale virtualized systems. The new drives are available in capacities up to 30.72 terabytes (TB) and in both Enterprise and Data Center Standard Form Factor (EDSFF) E3.S and 2.5-inch (U.2) form factors.

Optimized for the performance, latency, reduced power and thermal requirements of data center environments where power and cooling efficiency is critical, the KIOXIA CD8P Series provides the predictability and consistency needed for a seamless user experience. According to Jeff Janukowicz, Research Vice President, IDC, "Growth in NVMe SSDs continues with PCIe capacity shipments in servers and storage systems expected to grow at a 40% CAGR between 2022 and 2027. The new CD8P Series SSDs gives these customers the range of performance, capacity, and security choices essential for meeting the storage requirements of next-generation digital enterprise and data center infrastructure."

KIOXIA America, Inc. today announced the availability of the first hardware samples that support the Linux Foundation's vendor-neutral Software-Enabled Flash Community Project, which is making flash software-defined. The company is expecting to deliver customer samples in August 2023. Built for the demanding needs of hyperscale environments, Software-Enabled Flash technology helps hyperscale cloud providers and storage developers maximize the value of flash memory. The hardware from KIOXIA is the first step to putting this working technology in the hands of developers.

The first running units will be showcased in live demonstrations in the KIOXIA booth (#307) next week at Flash Memory Summit 2023 (FMS 2023). This new class of drive consists of purpose-built, media-centric flash hardware focused on hyperscale requirements that work with an open source API and libraries to provide the needed functionality. By unlocking the power of flash, this technology breaks free from legacy hard disk drive (HDD) protocols and creates a platform specific to flash media in a hyperscale environment.

Today, Kioxia Corporation, a world leader in memory solutions, announced that its PCIe 4.0 NVMe and SAS SSDs have been successfully tested for compatibility and interoperability with Microchip Technology Inc. ("Microchip's") Adaptec HBA 1200 Series, SmartHBA 2200 Series host bus adapters (HBAs) and SmartRAID 3200 Series RAID adapters.

As one of the broadest portfolios of SSDs in the industry, KIOXIA drives are available for client PCs, as well as data center, hyperscale and enterprise servers and storage systems. KIOXIA CD6, CD8, and CM6 Series PCIe 4.0 NVMe SSDs and KIOXIA PM6 and PM7 Series 24G SAS SSDs all successfully completed compatibility testing performed by Microchip.

Kioxia Corporation today commenced operation of two new R&D facilities - the Flagship Building at the Yokohama Technology Campus and the Shin-Koyasu Technology Front - strengthening the company's research and development capabilities in flash memory and solid-state drives (SSDs). Going forward, other R&D functions in Kanagawa Prefecture will be relocated to these new R&D hubs to improve research efficiency and promote further advancement in technological innovation.

With the addition of the new Flagship Building, the Yokohama Technology Campus will almost double in size, allowing Kioxia to expand its capabilities in evaluating flash memory and SSD products, thereby enhancing overall product development and product quality. Equipped with environmentally-friendly facilities, the Flagship Building has also acquired ZEB-Ready certification, which is given to buildings that reduce energy consumption by 50% or more through improved energy efficiency.

Continuing to move Universal Flash Storage (UFS) technology forward, KIOXIA America, Inc. today announced sampling of new, higher performing UFS Ver. 4.0 embedded flash memory devices. These devices deliver fast embedded storage transfer speeds in a small package size and are targeted to a variety of next-generation mobile applications, including leading-edge smartphones. The improved performance of UFS products from KIOXIA enables these applications to take advantage of 5G's connectivity benefits, leading to faster downloads, reduced lag time and an improved user experience.

UFS Ver. 4.0 devices from KIOXIA integrate the company's innovative BiCS FLASH 3D flash memory and a controller in a JEDEC-standard package. UFS 4.0 incorporates MIPI M-PHY 5.0 and UniPro 2.0 and supports theoretical interface speeds of up to 23.2 gigabits per second (Gbps) per lane or 46.4 Gbps per device. UFS 4.0 is backward compatible with UFS 3.1.

Kioxia Corporation, a world leader in memory solutions, today announced new consumer SSDs scheduled to be released in the third quarter of 2023. The EXCERIA PLUS G3 Series will leverage PCIe 4.0 technology and offer up to 2 terabytes (TB) of capacity. The new series is well-suited to mainstream users of high performance gaming PCs, desktops and notebooks, bringing the speed and affordability that they require. The EXCERIA PLUS G3 Series, which is a product under development, will be on reference exhibit at COMPUTEX TAIPEI from May 30 to June 2 at the Taipei Nangang Exhibition Center.

Featuring Kioxia's BiCS FLASH 3D flash memory TLC (Triple-Level-Cell), the EXCERIA PLUS G3 Series utilizes an M.2 2280 type single-sided form factor suitable for both desktops and mobile systems. The new drives will also support Kioxia's SSD Utility Management Software, which assists users with SSD monitoring and maintenance.

KIOXIA America, Inc. today announced the addition of the BG6 Series to its lineup of PCIe 4.0 solid state drives (SSDs) - the first product to feature the company's new, 6th generation BiCS FLASH 3D flash memory and almost 1.7 times the performance of its predecessor. Designed to unleash the increased speeds and affordability of PCIe 4.0 for PC users, the powerful and compact KIOXIA BG6 Series client SSDs offer a discrete M.2 2230 form factor with higher capacities and improved power efficiency. M.2 2280 single-sided form factor versions are also available.

The KIOXIA BG6 Series unlocks back-end flash performance while maintaining affordability and increasing capacity, making it an especially attractive option for commercial and consumer notebooks and desktops. KIOXIA BG6 drives support the fully matured Host Memory Buffer (HMB) technology, which utilizes part of the host memory (DRAM) as if it were its own, to realize a DRAM-less, high-performance SSD.

Due to the current lack of demand for NAND flash, the merger talks between Kioxia and Western Digital have picked up pace once again. The two companies have been at it since 2021 and it was reported back in January that the two companies once again wanted to try and combine their NAND production business. According to Reuters, the two have been pushed into the meeting room once again, largely due to the two NAND giants wanting to cut costs in a market where demand for their products isn't what it once was.

Kioxia and Western Digital are the second and fourth largest manufacturers of NAND flash, although all the memory is made in Kioxia's facilities. A merger of the two would create a company that is said to be owned at 43 percent by Kioxia and 37 percent by Western Digital, with current shareholders of the two companies getting the remaining 20 percent. However, a potential merger isn't without hurdles, as it's likely to be scrutinised by both the US and the PRC due to potential antitrust issues, with the combined company owning a third of the global NAND flash market. Kioxia has even shelved plans for a public offering, due to the sluggish demand for NAND flash. Time will tell if the two can come to an agreement, but it doesn't look like the best of times for a merger either.

The Chinese Government could retaliate to the U.S. ban on YMTC NAND flash memory products by banning American memory maker Micron Technology. This comes as the country initiated a "cybersecurity review" of Micron products to check if they conform to China's network security Laws. These are essentially the same grounds on which the US-FCC banned YMTC, forcing large customers like Apple to cancel orders of YMTC NAND flash products, derailing the company's growth. YMTC's 3D NAND flash products and their development roadmaps can be considered "contemporary," against those of Micron, Kioxia, SK hynix, and Samsung. If banned, China would force Chinese companies, such as Lenovo, HMD International, etc., to remove Micron from their qualified vendor lists.

Demonstrating continued innovation, Kioxia Corporation and Western Digital Corp. today announced details of their newest 3D flash memory technology. Applying advanced scaling and wafer bonding technologies, the 3D flash memory delivers exceptional capacity, performance and reliability at a compelling cost, which makes it ideal for meeting the needs of exponential data growth across a broad range of market segments.

"The new 3D flash memory demonstrates the benefits of our strong partnership with Kioxia and our combined innovation leadership," said Alper Ilkbahar, Senior Vice President of Technology & Strategy at Western Digital. "By working with one common R&D roadmap and continued investment in R&D, we have been able to productize this fundamental technology ahead of schedule and deliver high-performance, capital-efficient solutions."

Semiconductor manufacturers worldwide are forecast to increase 300 mm fab capacity to an all-time high of 9.6 million wafers per month (wpm) in 2026, SEMI announced today in its 300 mm Fab Outlook to 2026 report. After strong growth in 2021 and 2022, the 300 mm capacity expansion is expected to slow this year due to soft demand for memory and logic devices.

"While the pace of the global 300 mm fab capacity expansion is moderating, the industry remains squarely focused on growing capacity to meet robust secular demand for semiconductors," said Ajit Manocha, SEMI President and CEO. "The foundry, memory and power sectors will be major drivers of the new record capacity increase expected in 2026."

Kioxia, at the 2023 China Flash Market conference (CFM), unveiled its next-generation enterprise SSD powered by 2nd Gen XL-NAND flash memory that promises up to 13.5 GB/s of sequential reads on drives with PCIe Gen 5 x4 interfaces. This puts it higher than the 12-12.5 GB/s offered by the first crop of Gen 5 SSDs, and a 118% over its current crop of Gen 4 x4 SSDs. The drive also offers up to 9.7 GB/s of sequential writes.

4K random-access performance is of a lot more importance to enterprise customers, and here, the drive is said to offer up to 3 million IOPS random reads, with up to 1.06 million IOPS sequential writes. All this comes at a slightly reduced read-latency of 27 µs, compared to 29 µs for the previous generation. Kioxia also expects PCIe Gen 5 and CXL 1.0 to be the prominent I/O interfaces for enterprise SSDs from now until the end of 2025. It's only with 2026 that we could see the emergence of PCIe Gen 6 in the enterprise space, promising a doubling in interface bandwidth.

TrendForce's latest investigations reveal that the global NAND Flash market has been facing a demand headwind since 2H22. In response, the supply chain has been scrambling to clear out inventory, driving down NAND Flash contract prices by 20-25%. Enterprise SSD took the brunt of the fall with prices plummeting 23-28%. Despite manufacturers lowering prices in an attempt to drive up demand, clients are hesitant to purchase more components for fear of overstock. As a result, NAND Flash bit shipments rose by a mere 5.3% as ASP fell 22.8%. Global NAND Flash revenue was reported to be US$10.29 billion in 4Q22—down 25% QoQ.

TrendForce reports that Kioxia and Micron saw both a reduction in production and price in 4Q22. Kioxia's revenue plunged 30.5% due to weak demand from PC and smartphone clients and data centers readjusting their inventory. Micron generated a quarterly revenue of US$1.1 billion—a staggering 34.7% QoQ drop—that has led them to drastically decrease their capacity utilization rate for fabs. Luckily, Micron was able to ship their 232-layer client SSDs in 4Q22 as scheduled, and with the 176-layer QLC enterprise SSD hot on its heels, Micron's bit shipments are predicted to steadily improve in 2023 with their revenue climbing gradually quarter by quarter.

Looking back at 2H22, as server OEMs slowed down the momentum of their product shipments, Chinese server buyers also held a conservative outlook on future demand and focused on inventory reduction. Thus, the flow of orders for enterprise SSDs remained sluggish. However, NAND Flash suppliers had to step up shipments of enterprise SSDs during 2H22 because the demand for storage components equipped in notebook (laptop) computers and smartphones had undergone very large downward corrections. Compared with other categories of NAND Flash products, enterprise SSDs represented the only significant source of bit consumption. Ultimately, due to the imbalance between supply and demand, the QoQ decline in prices of enterprise SSDs widened to 25% for 4Q22. This price plunge, in turn, caused the quarterly total revenue from enterprise SSDs to drop by 27.4% QoQ to around US$3.79 billion. TrendForce projects that the NAND Flash industry will again post a QoQ decline in the revenue from this product category for 1Q23.

According to a report from Bloomberg, Western Digital and Kioxia are holding new talks about a potential merger of both companies' flash production businesses. The merger appears to be quite complex, as not only does it involve Western Digital spinning off its flash production business unit, which is then said to be merged with Kioxia, into what will be a publicly traded company in the US, but there will also be a second listing in Japan for the company.

Considering that Kioxia came out of Toshiba's DRAM and NAND flash manufacturing business, in which Western Digital was a partner until Toshiba divested its business into Kioxia. This caused quite some tension between the two companies, but Western Digital and Kioxia kept producing NAND flash in the shared facilities. The report by Bloomberg suggests that a management team from Western Digital will be running the combined company, which could potentially lead to future issues between the US and Japanese sides of the company. Time will tell if a merger will actually take place or not, as the two companies failed to come to an agreement in 2021, but it's possible that something has changed since then. Back in 2021, the merger was valued at US$20 billion plus.

KIOXIA is betting big on enterprise flash storage, and demoed several of its new and already-launched NVMe products based on the company's 162-layer 3D NAND flash memory, aka 6th Generation BiCS flash. Starting off, we see several single-chip solutions, namely the BiCS5 eTLC, the BiCS Industial TLC, and the BiCS5-QLC. These are complete NVMe SSDs on a single package, targeting embedded systems, industrial PCs, and the likes. They can even be directly embedded on server motherboards to serve as boot drives, freeing up precious chassis space for the main storage devices.

The EM6 is an enterprise network-attached SSD in a 2.5-inch form-factor. This is a NAS-on-a-stick that can be deployed at large scale, and accessible as a network resource, or as an NVMe-over-Fiber device. The CM7 is a high-capacity 2.5-inch (EDSFF E3.S) SSD that comes in sizes of up to 30 TB, and has PCI-Express 5.0 x4 interface with NVMe 2.0 protocol, with endurance of up to 3 DWPD and offering FIPS 140-33 security. We also see the XD6 line of EDSFF E1.S form-factor NVMe SSDs with PCIe 4.0 interfaces, up to 3.84 TB capacity, and 1 DWPD endurance.

This week at CES 2023, KIOXIA America, Inc., the inventors of NAND flash, will highlight new technologies, products, and form factors designed to meet upcoming IT requirements and standards - including PCIe 5.0 and UFS 4.0.

In an ever-changing technology landscape, where evolving standards push performance levels higher and higher, KIOXIA stands ready for what comes next - thanks to its broad, diverse lineup of flash storage solutions. "Whether it's the next connected vehicle, the next personal mobility device or the next smart city - we keep advancing flash memory to make the next thing possible," said Alex Mei, vice president of corporate marketing for KIOXIA America, Inc. "Countless consumer devices and applications require flash memory and SSDs, and we are committed to continued innovation."

It's not just TSMC and the other Taiwanese chip makers that are seeing a dip in demand, the Korean chip makers have seen a slump of 15 percent in the past four months, compared to 2021. This is said to be the biggest drop in chip demand since 2009 according to data from Statistics Korea. There's a combination of factors behind the slump in demand, especially when it comes to memory related products, where inventories already are high, combined with inflation and a low demand.

According to the Financial Times, an analyst at JPMorgan in Korea isn't expecting things to improve until 2024 at the earliest. Just like Micron and Kioxia, SK hynix is looking at cutting spending on new fabs and production lines, although as TPU reported earlier this week, Samsung is going its own way, by continuing to invest in new fabs and production lines. Samsung is expected to have a capex of US$37.5 billion this year back in October, although based on the increase in costs, the capex would have increased in the fourth quarter of the year. On the plus side, it seems like the shortage of semiconductors should ease in 2023 and hopefully return to more normal levels.

YMTC, the Chinese DRAM and NAND flash company that recently announced a 232-layer 3D NAND flash memory that threatened to disrupt entrenched players Samsung, Micron Technology, Kioxia, and SK Hynix, has been blacklisted by the U.S. Department of Commerce, forcing American consumer electronics and PC manufacturers to stop sourcing from the company. Capitalizing on just this, Samsung raised prices of its NAND flash memory chips by as much as 10%, according to a DigiTimes report.

YMTC peaked when Apple struck a NAND flash supply deal with the company in 2020, which would see its storage devices power pretty much every Apple product you can think of, however, under political pressure, Apple withdrew from this deal in 2022. The Department of Commerce contention has been to that YMTC has access to cutting-edge technology, and is backed by Chinese state-capacity, which can help it drive out competitors. All is not well between the U.S. and China geopolitically, either. Samsung's 10% increase in the first half of December 2022 concerns spot-pricing, which could mean its contract pricing (usually used by customers placing very large orders), could be different. It is conceivable that the exit of YMTC from the U.S. market could raise NAND flash product prices across the board.

TrendForce reports that the recent easing of tight supply for components has led to rising shipments for enterprise servers. Furthermore, ODMs for the most part have been able to sustain the momentum of data center build-out with the demand from ByteDance and the tenders issued by Chinese telecom companies. Nevertheless, the performance of the enterprise SSD market on the whole has been impacted by falling NAND Flash prices. For 3Q22, the NAND Flash industry's enterprise SSD revenue dropped by 28.7% QoQ to US$5.22 billion. Furthermore, all enterprise SSD suppliers recorded a negative performance for the period as well.

Regarding individual enterprise SSD suppliers' revenue figures for 3Q22, Samsung posted around US$2.12 billion. Its market share also shrank to 40.6% from 44.5% in 2Q22. Samsung's performance was mainly dragged down by the decline in its NAND Flash ASP. In the aspect of product development, SSDs featuring 128L NAND Flash and PCIe 4.0 will remain Samsung's main offerings for enterprise storage during 2023.

Market intelligence firm TrendForce reports that the whole NAND Flash market was severely weakened by plummeting demand in 3Q22. Because shipments of end products including consumer electronics and servers had been below expectations, the overall NAND ASP fell by 18.3% QoQ. Furthermore, the general economic outlook remained pessimistic, so enterprises across many sectors started to scale back their capital expenditure plans and halted the momentum of their procurement activities. Due to this development, the problem of excess inventory eventually spread to NAND Flash suppliers. The pressure on suppliers to make sales was ratcheted up dramatically. According to TrendForce's investigation, NAND Flash bit shipments fell by 6.7% QoQ for 3Q22, and the overall NAND Flash ASP also kept sliding. On account of the unfavorable market situation, the NAND Flash industry recorded a total revenue of around US$13.71 billion for 3Q22. The QoQ revenue decline reached as much as 24.3%.

The ranking of NAND Flash suppliers by revenue saw two notable changes for 3Q22. First, SK Group moved down to third place as it suffered the largest revenue drop among suppliers. Its revenue slipped by 29.8% QoQ to US$2.54 billion mainly due to the significant deterioration of the demand for PCs and smartphones. Its subsidiary Solidigm was also affected by the slowdown in server procurements. Previously, servers had a fairly stable demand situation compared with other kinds of end products. However, server demand eventually buckled in 3Q22 as result of enterprises cutting capital expenditure and undergoing a period of inventory correction. Compared with 2Q22, SK Group (that encompasses SK hynix and Solidigm) posted a drop of 11.1% in bit shipments and an even steeper decline of more than 20% in ASP.