The NAND memory industry is not in great shape at the moment, with the big three (Micron, Samsung, SK Hynix) having reported significant financial losses in this area recently. If you include Kioxia and Western Digital as part of this collective picture, a grand total of over $10 billion has been lost in the flash memory segment. According to DigiTimes Asia this week, Pua Khein-Seng - the chief executive officer of Phison Electronics Corporation - has warned that parts of the industry could collapse due to potential company bankruptcies.

Khein-Seng informed attendees at a press conference that forced NAND price cuts are not feasible in the current market environment, and that supply chains could be affected if related companies start to shutdown - due to operational losses. He expects 3D NAND manufacturers to cutback on output in order to soften the market, and unit price increases are also a possibility. Phison has experienced a drop in revenues for the first quarter of 2023, but the CEO insists that his company is not willing to cutback on research and development costs - 80% of its annual expense budget will be invested in future projects. Khein-Seng states that rival companies have reduced spending on R&D by 20%, yet Phison remains committed to its clients by providing cutting edge technology (for example the E26 SSD memory controller).

TrendForce's latest research indicates that, as production cuts to DRAM and NAND Flash have not kept pace with weakening demand, the ASP of some products is expected to decline further in 2Q23. DRAM prices are projected to fall 13~18%; NAND Flash is expected to fall between 8~13%.

TrendForce reports that the significant drop in DRAM prices was mostly attributed to high inventory levels of DDR4 and LPDDR5 as PC DRAM, server DRAM, and mobile DRAM collectively account for over 85% of DRAM consumption. Meanwhile, the market share for DDR5 remains relatively low.

Silicon Motion Technology Corporation ("Silicon Motion", the "Company" or "we") today announced its financial results for the quarter ended March 31, 2023. For the first quarter of 2023, net sales (GAAP) decreased sequentially to $124.1 million from $200.8 million in the fourth quarter of 2022. Net income (GAAP) decreased to $10.2 million, or $0.30 per diluted American Depositary Share ("ADS") (GAAP), from net income (GAAP) of $23.5 million, or $0.71 per diluted ADS (GAAP), in the fourth quarter of 2022.

For the first quarter of 2023, net income (non-GAAP) decreased to $11.2 million, or $0.33 per diluted ADS (non-GAAP), from net income (non-GAAP) of $41.1 million, or $1.22 per diluted ADS (non-GAAP), in the fourth quarter of 2022.

Solidigm, a leading global provider of innovative NAND flash memory solutions, has announced the launch of Solidigm Synergy 2.0 software. The Solidigm Synergy software suite improves overall system performance and delivers a better user experience than hardware alone can provide. This free download includes two elements, both optional, but highly recommended: the Solidigm Synergy Driver, which automatically improves the performance of Solidigm SSDs, and the Solidigm Synergy Toolkit, which offers useful SSD health reporting and tools for SSDs from any manufacturer.

Solidigm is the only company today that is investing in a solution with software built on top of the SSD that understands system behavior and adapts based on the user's needs. The latest Solidigm Synergy software improves the PC user experience for all SSD users. It increases performance where it matters most on Solidigm SSDs, and offers a host of useful drive management features for all SSDs, regardless of manufacturer. Solidigm is combining breakthrough SSD products with revolutionary software solutions and plans to introduce further innovations to deliver additional improvements to end-users.

Crucial's T700 PCIe Gen 5 NVMe SSD series has been previewed a couple of times, showing some impressive sequential read and write performance, and now, Crucial has announced that it is available for pre-order, directly from Crucial's own store. The release date is set for May 30th.

In case you missed it earlier, the Crucial T700 PCIe Gen 5 NVMe SSD offers sequential performance of up to 12,400 MB/s for read and up to 11,800 MB/s for write (11,700 MB/s and 9,500 MB/s for the 1 TB version). Available in 1 TB, 2 TB, and 4 TB capacities, and with or without the heatsink, the Crucial T700 uses Micron 232-layer TLC NAND paired up with Phison's E26 controller. The endurance rating (TBW) for the Crucial T700 SSD series is set at 600 TB for the 1 TB version, 1200 TB for the 2 TB version, and 2400 TB for the 4 TB version, and it is backed by a 5-year limited warranty.

Yesterday SK Hynix reported its Q1 2023 results and to say that they were abysmal is being kind, as the company reported a 3.4 trillion won operating loss, or just over US$2.5 billion. That's no small hit to take for any company, especially when it's only the performance for a single quarter. However, SK Hynix is apparently trying to see its situation from a positive perspective and believes that the memory chip market will rebound in the second half of this year. The positive outlook isn't just based on what SK Hynix believes though, as various analysts and securities companies believe in an upswing in the second half of the year.

That said, Micron, one of SK Hynix main competitors, has a more drab outlook for the remainder of 2023 and is expecting a tough year ahead. SK Hynix is expecting production cuts by itself, Micron and Samsung to start to take effect sometime in the second quarter this year, which should see inventory drop to more normal levels for all three companies. SK Hynix is also expecting to see a higher demand for DDR5 DRAM later this year, especially in the mobile and server market space. Finally, SK Hynix is hoping that its customers will buy higher density memory products this year, replacing older, lower density solutions, be that DRAM or NAND flash related. SK Hynix is expecting to launch its Gen 5 10 nm DRAM and 238-layer NAND sometime next year, which the company is also hoping will bring more income to its coffers, but the company still has to make it through the rest of 2023 first.

Samsung Electronics today reported financial results for the first quarter ended March 31, 2023. The Company posted KRW 63.75 trillion in consolidated revenue, a 10% decline from the previous quarter, as overall consumer spending slowed amid the uncertain global macroeconomic environment. Operating profit was KRW 0.64 trillion as the DS (Device Solutions) Division faced decreased demand, while profit in the DX (Device eXperience) Division increased.

The DS Division's profit declined from the previous quarter due to weak demand in the Memory Business, a decline in utilization rates in the Foundry Business and continued weak demand and inventory adjustments from customers. Samsung Display Corporation (SDC) saw earnings in the mobile panel business decline quarter-on-quarter amid a market contraction, while the large panel business slightly narrowed its losses. The DX Division's results improved on the back of strong sales of the premium Galaxy S23 series as well as an enhanced sales mix focusing on premium TVs.

According to the South China Morning Post (SCMP) sources, Yangtze Memory Technologies Corp (YMTC) has been plotting to manufacture its advanced 3D NAND flash using locally sourced equipment. As the source notes, YMTC has placed big orders from local equipment makers in a secret project codenamed Wudangshan, named after the Taoist mountain in the company's home province of Hubei. Last year, YTMC announced significant progress towards creating 200+ layer 3D NAND flash before other 3D NAND makers like Micron and SK Hynix. Called X3-9070, the chip is a 232-layer 3D NAND based on the company's advanced Xtacking 3.0 architecture.

As the SCMP finds, YTMC has placed big orders at Beijing-based Naura Technology Group, maker of etching tools and competitor to Lam Research, to manufacture its advanced flash memory. Additionally, YTMC has reportedly asked all its tool suppliers to remove all logos and other marks from equipment to avoid additional US sanctions holding the development back. This significant order block comes after the state invested 7 billion US Dollars into YTMC to boost its production capacity, and we see the company utilizing those resources right away. However, few industry analysts have identified a few "choke points" in YTMC's path to independent manufacturing, as there are still no viable domestic alternatives to US-based tool makers in areas such as metrology tools, where KLA is the dominant player, and lithography tools, where ASML, Nikon, and Canon, are noteworthy. The Wuhan-based Wudangshan project remains secret about dealing with those choke points in the future.

TrendForce reports that the US Department of Commerce recently released details regarding its CHIPS and Science Act, which stipulates that beneficiaries of the act will be restricted in their investment activities—for more advanced and mature processes—in China, North Korea, Iran, and Russia for the next ten years. The scope of restrictions in this updated legislation will be far more extensive than the previous export ban, further reducing the willingness of multinational semiconductor companies to invest in China for the next decade.

CHIPS Act will mainly impact TSMC; and as the decoupling of the supply chain continues, VIS and PSMC capture orders rerouted from Chinese foundries
In recent years, the US has banned semiconductor exports and passed the CHIPS Act, all to ensure supply chains decoupling from China. Initially, bans on exports were primarily focused on non-planar transistor architecture (16/14 nm and more advanced processes). However, Japan and the Netherlands have also announced that they intend to join the sanctions, which means key DUV immersion systems, used for producing both sub-16 nm and 40/28 nm mature processes, are likely to be included within the scope of the ban as well. These developments, in conjunction with the CHIPS Act, mean that the expansion of both Chinese foundries and multinational foundries in China will be suppressed to varying degrees—regardless of whether they are advanced or mature processes.

Analyst firm Yole Group has predicted that SSD sales revenues will grow to $67 billion in the year 2028, generated by 472 million unit sales - indicating a very healthy outlook in the long term. However, their predictions for market performance in 2023 appear to be less cheerful for manufacturers of NAND flash memory. The SSD market dynamic was positive in 2021 and the starting months of 2022, but demand has dropped sharply since then due to a number of factors including global inflation, geopolitical tensions, and inventory digestion at electronics manufacturers. Sales revenues in 2022 totaled $29 billion (352 million units), down from $34 billion (400 million units) in 2021 - demonstrating a 14% year-to-year decline.

The continued weakening of global demand in 2023 will have an effect on SSD sales revenues, and the Yole Group has foreseen troublesome outcomes for manufacturers. The average selling price of NAND memory and solid-state drive units has been on the decline in the recent quarters, caused by sluggish demand and a surplus of stock. Despite the grim outlook in the short term, the research body is predicting a compounded annual growth rate (CAGR) of about 15% between 2022 and 2028 for the overall size of the SSD market.

Cervoz Technology, a leading supplier of industrial-grade storage and memory solutions, is excited to announce the new NVMe PCIe Gen 4x4 SSDs, the T441. Purposefully designed to cater to the growing automaticity trend of the industry, the T441 is the ideal choice for companies seeking cutting-edge technology in high-performance storage solutions.

Blazing Speeds with High Capacity
The Cervoz T441 SSDs leverage the power of 112-layer 3D TLC NAND flash technology, offering storage capacities of up to 3840 GB in a compact and energy-efficient design. In addition, the high-speed PCIe Gen 4x4 interface enables faster and more efficient data access, with Read/Write speeds of up to 7,100/6,190 MB/s and 4K random IOPS of up to 1,000K. This exceptional performance makes the T441 an ideal solution for applications requiring real-time processing of vast data, such as surveillance, machine vision, and edge AI, as well as those handling massive data sets like CAD, biomedical engineering, and atmospheric sciences.

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."

Although NAND suppliers have continued to roll back production, there is still an oversupply of NAND Flash as demand for products such as servers, smartphones, and notebooks is still too weak. Therefore, TrendForce predicts that the ASP of NAND Flash will continue to fall in 2Q23, though that decline may shrink to 5~10%. The key to supply and demand returning to a market equilibrium lies in whether NAND suppliers can cut back on production even more. TrendForce believes if demand remains stable, then the ASP of NAND Flash will have an opportunity to rebound in 4Q23; if demand is weaker than expected, then ASP will take longer to recover.

Client SSD: Currently, PC OEM's have managed to liquidate most of their component inventory, and are now gearing up in preparation for mid-year sales events. Suppliers are cutting prices to clear out their inventories of PCIe Gen 3 SSDs, which are gradually being phased out. Meanwhile, prices of PCIe Gen 4 SSDs continue to face downward pressure due to a slow intake of new customer orders. The continuous decline of QLC products in 1Q23 has also dragged down the prices of TLC products, and there is relatively little room for prices to keep falling in 2Q23. While it still remains unclear whether or not demand will recover, TrendForce projects that the prices of PC client SSDs will drop 5~10% in 2Q23.

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.

The homebrew and modification community has delved deeper into the recent bout of bricked Nintendo Wii U consoles, unlucky owners are seeing their systems throwing up error codes that indicate an internal memory failure. As covered on TPU almost two weeks ago, it was speculated that leaving a Wii U in a long-term state of unuse was a root cause of the problem. It is now theorized that a simple choice of memory chip is the real issue behind the corruptions, and not a case of leaving your unplugged Wii U stashed in a box somewhere.

An online database has been established on hackmd.io, and a member is collecting hard data from Wii U owners across various online communities and sources. Early indications show that consoles fitted with a Hynix eMMC are leading the pack in terms of number of system failures, Samsung-equipped models are placed in a distant second place, and the Toshiba variant is reported as having zero problems.

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.

It has been reported by multiple users across several online communities that their Wii U consoles are no longer functioning properly. The error codes 160-0103 and 160-2155 are the dreaded indicators of memory corruption. It has been discovered that the NAND Flash within the Wii U's internal eMMC is prone to failure. According to details gleaned from teardowns of the console's hardware, Nintendo has implemented either Toshiba or Samsung flash storage boards for the various revisions of the console. There has been an uptick in the rate of bricked Wii U consoles across recent months, but the problems seem to have occurred as far back as 2015, according to archived posts on the GBA Temp forum. It is speculated that leaving the Wii U inactive for long periods of time can lead to the memory corruption issues.

Silicon Motion Technology Corporation, a global leader in designing and marketing NAND flash controllers for solid-state storage devices, today announced it will be exhibiting at the upcoming Embedded World in Nuremberg, Germany from the 14th to 16th March and will be showcasing their high-performance PCIe NVMe Gen 4 single-chip SSD solution, automotive controller as well as an array of PCIe NVMe Gen 4 SSD controller solutions for personal computers, industrial/embedded and automotive applications.

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.

Pure Storage, a maker of various storage solutions and custom enterprise-grade SSDs, claims the company will produce SSDs with up to 300 TBs of capacity by 2026. In an interview with Pure Storage CTO Alex McMullan, Blocks & Files got exclusive information that the company targets SSD capacities of up to 300 TBs in 2026. Pure Storage creates proprietary Direct Flash Modules (DFM) SSDs which use 3D NAND chips controlled by a custom SSD controller, are used in the FlashArray systems, and run on a custom FlashBlade operating system. This level of customization allows Pure Storage to create SSD drives with remarkable capacities in the future as the 3D NAND technology advances.

In the coming years, 3D NAND flash manufacturers will switch from the current 200-layer chips to the 400/500-layer chips, driving storage density to new highs. As manufacturers update their technology, so does Pure with its DFM cards that use regular U.2 NVMe connectors in a custom ruler-style format made explicitly for Pure FlashArray systems. Compared to upcoming HDDs that Toshiba and Seagate will use, Pure Storage DFM SSDs will have much higher capacities and read/write speeds, especially as higher-density 3D NAND arrives. You can see the comparison of Pure's estimates for the future 300 TB SSDs with future HDD technology.

Today, KIOXIA America, Inc. announces its proud participation in the Hewlett Packard Enterprise (HPE) Spaceborne Computer-2 (SBC-2) program. As part of the program, KIOXIA SSDs provide robust flash storage in HPE Edgeline and HPE ProLiant servers in a test environment to conduct scientific experiments aboard the International Space Station (ISS).

"By bringing KIOXIA's expertise and its SSDs, one of the industry's leading NAND flash capabilities, with HPE Spaceborne Computer-2, together we are pushing the boundaries of scientific discovery and innovation at the most extreme edge."

Since 2022, DRAM suppliers have been adjusting their product mixes so as to assign more wafer input to server DRAM products while scaling back the wafer input for mobile DRAM products. This trend is driven by two reasons. First, the demand outlook is bright for the server DRAM segment. Second, the mobile DRAM segment was in significant oversupply during 2022. Moving into 2023, the projections on the growth of smartphone shipments and the increase in the average DRAM content of smartphones remain quite conservative. Therefore, DRAM suppliers intend to keep expanding the share of server DRAM in their product mixes. According to TrendForce's analysis on the distribution of the DRAM industry's total bit output for 2023, server DRAM is estimated to comprise around 37.6%, whereas mobile DRAM is estimated to comprise around 36.8%. Hence, server DRAM will formally surpass mobile DRAM in terms of the portion of the overall supply within this year.

One of the major issues with M.2 based NVMe SSDs today is the excessive heat they output, part of the reason most of them run so hot is because of the older fabrication node they're made on. Most current PCIe 4.0 NVMe SSD controllers are built on a 12 nm node of some kind, but based on data out of IT Home in the PRC, we now have details of Silicon Motion's SM2504XT PCIe 5.0 NVMe SSD controller, which appears to be one of the first, if not the first, to be made on a 7 nm node.

Although it's not mentioned specifically who Silicon Motion's manufacturing partner is, it's most likely going to be TSMC, as Silicon Motion is a Taiwanese company. The SM2504XT will be a mainstream 4-channel controller, but it'll support NAND flash rated at up to 3600 MT/s, which is a step up from any other currently announced NVMe SSD controller. It also supports the NVMe 2.0 protocol and will have a PCIe 5.0 x4 host system interface. The new controller is expected to have hit the engineering sample stage some time in September this year.

Silicon Motion Technology Corporation ("Silicon Motion" or the "Company") today announced its financial results for the quarter ended December 31, 2022. For the fourth quarter of 2022, net sales (GAAP) decreased sequentially to $200.8 million from $250.8 million in the third quarter of 2022. Net income (GAAP) decreased to $23.5 million, or $0.71 per diluted American Depositary Share ("ADS") (GAAP), from net income (GAAP) of $42.9 million, or $1.29 per diluted ADS (GAAP), in the third quarter of 2022.

For the fourth quarter of 2022, net income (non-GAAP) decreased to $41.1 million, or $1.22 per diluted ADS (non-GAAP), from net income (non-GAAP) of $51.2 million, or $1.53 per diluted ADS (non-GAAP), in the third quarter of 2022.