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First Consumer PCIe 5.0 NVMe SSD Gets Tested, Makes a Lot of Noise

In Japan, the first consumer focused PCIe 5.0 NVMe SSDs have gone on sale and one of these drives has been put through some quick synthetic benchmarks by @momomo_us on Twitter. We're not familiar with the CFD Gaming brand which the drive is sold under, but the CSSD-M2M2TPG5NFZ—as the drive is called—is based on Phison's E26 controller and it's paired with Micron's B58R 3D TLC NAND, suggesting it's based around a reference design from Phison. CFD Gaming offers the drive in 1, 2 and 4 TB sizes and @momomo_us tested the 2 TB version.

Before we go into the performance figures, there's one thing that needs to be highlighted about this drive, it produces a high pitch noise during use, thanks to its tiny 17x17 mm, 21,000 rpm fan from Sunon. @momomo_us provided a video on Twitter which is linked below, so you can hear it in action for yourself. Hopefully this isn't the future of NVMe SSDs, as it's going to put off many potential customers from getting one. @momomo_us only tested the drive with CrystalDiskMark 8.0.4, which shows that sequential write speeds are slightly faster than claimed by CFD Gaming, with the sequential write speeds being bang on the money. For those hoping for higher random performance, things aren't looking so great, as the drive only performs slightly better than the best PCIe 4.0 NVMe drives.

Samsung Electronics Announces Fourth Quarter and FY 2022 Results, Profits at an 8-year Low

Samsung Electronics today reported financial results for the fourth quarter and the fiscal year 2022. The Company posted KRW 70.46 trillion in consolidated revenue and KRW 4.31 trillion in operating profit in the quarter ended December 31, 2022. For the full year, it reported 302.23 trillion in annual revenue, a record high and KRW 43.38 trillion in operating profit.

The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown. Earnings at the Memory Business decreased sharply as prices fell and customers continued to adjust inventory. The System LSI Business also saw a decline in earnings as sales of key products were weighed down by inventory adjustments in the industry. The Foundry Business posted a new record for quarterly revenue while profit increased year-on-year on the back of advanced node capacity expansion as well as customer base and application area diversification.

Western Digital Launches the Dual Actuator Ultrastar DC HS760 20 TB Hard Drive

Western Digital has launched its first dual actuator hard drive, in the shape of the Ultrastar DC HS760 Hard Drive, which is currently only available in a single 20 TB SKU. This places WD's new drive head to head with Seagates Exos X20 drives, although Seagate offers an 18 and a 20 TB SKU. WD offers the Ultrastar DC HS760 with a SAS interface, whereas Seagate offers its Exos drives with either SATA or SAS connectivity. Both companies are using traditional CMR platters that spin at 7,200 RPM.

WD didn't provide too many details when it comes to the performance of the Ultrastar DC HS760, as the company only claims it offers twice the sequential throughput and 1.7 times higher random performance compared with the Ultrastar DC HC560. WD appears to have a potential performance advantage over Seagate, as WD has integrated its OptiNAND technology based on WD's iNAND, which means that the Ultrastar DC HS760 should have at least twice as much cache as Seagates Exos X20 drives which top out at 256 MB. This is based on WD's DC HC560 drives which ship with 512 MB of cache. Just like Seagates Exos drives, the Ultrastar DC HS760 is a helium filled drive and WD claims 2.5 million MTBF time and offers a five year warranty. No pricing was revealed.

Corsair Accidentally Reveals MP700 PCIe 5.0 SSD, Running at 10 GB/s

Corsair has teased its fastest PCIe 5.0 SSD yet in an M.2 form factor. The company published some initial details about its upcoming product in a short video. However, the video has been taken private, indicating that the launch date may be at a later stage of the year. Thanks to Overclock3D, we saw its looks and got a slight peek at the product. Called the MP700, the SSD is supposedly boasting a fantastic 10 GB/s read capability. The write section is also impressive, with the NVMe SSD capable of reaching around 9 GB/s of what we suppose is a sustained write speed. It uses 3D TLC NAND Flash and supports Microsoft DirectStorage technology for faster load time. Below is a quote from Corsair about the MP700.
CorsairExperience the performance of PCIe Gen5 storage in your system, with up to 10,000MB/sec sequential read and 9,500MB/sec sequential write speeds for amazingly fast save, boot, and load times.
The high-bandwidth NVMe 2.0 interface and high-density 3D TLC NAND flash memory offer outstanding performance and longevity. Slot the MP700 directly into your motherboard thanks to its M.2 2280 form-factor, while a stylish aluminum heatsink helps manage temperatures and reduce throttling. Microsoft DirectStorage enables unprecedented load times when playing compatible games.

Western Digital and Kioxia Said to be Considering Merging Flash Production Business

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.

Enjoy the Evolution of Speed with AORUS Gen4 7300 NVMe SSD

GIGABYTE TECHNOLOGY Co. Ltd, a leading manufacturer of motherboards, graphics cards, and hardware solutions today announced the evolutionary AORUS Gen4 7300 SSD, which is the upgraded PCIe 4.0 SSD with read speed up to 7300 MB/s. Enhanced by the select PCIe 4.0 controller with advanced 3D-TLC NAND Flash, it provides superior performance than the previous generation PCIe 4.0 NVMe SSD. AORUS Gen4 7300 SSD with M.2 2280 interface comes in two capacity variants of 2 TB and 1 TB, along with a unique packaging design of separated SSD and heatsink packing to offer more flexible thermal solutions. Meanwhile, the GIGABYTE exclusive GCC software management platform provides the instant overview and adjustment of SSD status for a cool storage operation with high performance.

AORUS Gen4 7300 SSD equips the select Phison E18 8-channel controller, which provides users with ultimate random access rate, as well as the high-speed 3D-TLC NAND Flash and SLC cache design that brings the PCIe 4.0 into full play. Under the real test, AORUS Gen4 7300 SSD can reach a read speed up to 7300 MB/s and a write speed up to 6850 MB/s, which is faster than the previous gen. PCIe 4.0 NVMe SSD, two times faster than PCIe 3.0 SSD, and up to 13 times faster than SATA SSD. Enhanced by the multi-core architecture of the E18 controller, AORUS Gen4 7300 SSD not only improves AI multitasking to lessen the bottleneck of system performance, but powers up content creators, gamers, and users eager for extreme performance.

Samsung Profits Down by 69 Percent in Q4 2022

Consumer electronics giant Samsung had what can only be described as a terrible fourth quarter in 2022, with profits falling by around 4.3 trillion Korean Won, or US$3.4 billion, a drop of 69 percent compared to the previous year. This will be Samsung's lowest profit since Q3 2014 and Samsung has grown a lot as a company in those eight years. The revenue was also down nine percent from the third quarter of 2022, suggesting that Samsung is in for a rough start to the new year.

There seems to be a combination of reasons for the drop in profit, from lower demand for Samsung's range of smartphones and other consumer electronics, but also due to lower demand for memory chips, both DRAM and NAND, both of which Samsung is a big producer of. Samsung stated that "for the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances," which places Samsung in the same situation as its major competitors, who have also reported huge demand slumps.

A Walk Through the KIOXIA Memory Lane

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.

Phison Demonstrates Latest PCIe Gen5 Innovation, E26 SSD Controller With I/O+ Technology

Phison Electronics Corp., a global leader in NAND flash controller and storage solutions, today is demonstrating the company's latest PCIe Gen5 innovation that is transcending system-level performance to new heights at CES in Las Vegas. Phison is demonstrating the E26 with Phison's proprietary I/O+ Technology to usher a new evolution of gaming experiences. For enterprise, Phison is previewing the company's latest Gen5 X Series SSD enterprise controllers, which can provide twice the performance per watt (in comparison to X1, the previous generation). Following the success of the world's first PCI-SIG Association certified PCIe 5.0 Redriver PS7101, Phison is also introducing the PS7201 Retimer with industry-proven IP. Phison's Retimer is designed to solve performance and data integrity issues in enterprise and automotive applications and further enhances the Gen5 ecosystem.

"Phison is ecstatic to be ringing in the new year by showcasing our product milestones for the industry, our partners and enterprise customers because we are committed and dedicated to engineering next generation technologies through ecosystem excellence," said Michael Wu, GM & President of Phison Technology Inc. (USA). "As a proven category leader, Phison's E26 with I/O+ Technology, latest Enterprise PCIe Gen5 X Series, signal enhancing Redriver and Retimer are product breakthroughs that are a testament to our engineering success."

Samsung Said to be Increasing Chip Production While Inflation is Increasing Cost of New Fabs

According to Reuters, Samsung is gearing up to increase the chip production capacity at its P3 factory in Pyeongtaek in South Korea, despite the fact that there's a general slowdown in the semiconductor industry, in addition to the general economic downturn. Samsung is apparently planning on adding 12-inch wafer capacity for DRAM, while also adding more 4 nm chip capacity. The P3 fab kicked off production of Samsung's most cutting-edge NAND flash chips earlier this year and is the company's largest fab overall. According to Reuters, Samsung is aiming to add at least 10 new EUV machines in 2023.

In related news via The Elec, Samsung has seen costs increase significantly when it comes to materials costs relating to the expansion of the P3 fab. So far, the company has racked up extra costs of over a trillion korean Won, or more than US$786 million, largely due to all of its contractors having raised their prices. The report also mentioned that some parts of the expansion of the P3 fab has been delayed by as much as a year, which isn't good news for Samsung and it likely means that the company will see further increases in costs before the expansions are finished.

SK hynix to Showcase Energy-Efficient, High-Performance Memory Products at CES 2023

SK hynix Inc. announced today that it will showcase a number of its core and brand-new products at the CES 2023, the most influential tech event in the world taking place in Las Vegas from Jan. 5th through Jan. 8th. The products, introduced under the theme of the "Green Digital Solution," as part of the SK Group's "Carbon-Free Future" campaign, are expected to attract Big Tech customers and experts given the significant improvement in performance and energy efficiency compared with the previous generation as well as the effect of lessening the impact on the environment.

Attention on energy-efficient memory chips has been on the rise as global tech companies pursue products that process data faster, while consuming less energy. SK hynix is confident that its products to be displayed at the CES 2023 will meet customers' such needs with outstanding performance per watt and performance. The core product put forward at the show is PS1010 E3.S, an eSSD product composed of multiple 176-layer 4D NAND that supports the fifth generation of the PCIe interface.

MSI Announces the Spatium M461, M453 and M451 PCIe 4.0 NVMe SSDs

MSI is announcing the launch of our new Gen4 PCIe NVMe models to its SSD category - SPATIUM M461, M452 & M453 in M.2 2280 form factors that can be easily installed into compatible desktop motherboards and laptops. These new products allow MSI to continue to refine its identity as a high-performance PC brand and grow its product ecosystem by expanding SPATIUM, our high-performance storage category. Our SSDs are built with high-quality, high-density 3D NAND flash that delivers astonishing performance and endurance for professionals, content creators, and gamers.

SPATIUM M461, The Competitive PCIe 4.0 SSD for Mainstream Segment.
SPATIUM M461 was developed to meet the expectations of mainstream SSD consumers. Blazing fast speeds up to 5000 MB/sec sequential read and 4200 MB/sec sequential write speeds allow users using the latest generation of PCs to enjoy the capabilities of the PCIe Gen4 interface. Available storage capacities are 500 GB, 1 TB, 2 TB, and 4 TB.

Micron Reports a Loss for FQ1 '23, Said to be laying off 10 Percent of Workforce

As we're nearing the end of 2022, there is more news about layoffs and this time around it's Micron that is looking at laying off some 10 percent of its workforce. The company announced its FQ1 '23 earnings today, or fiscal quarter one 2023, since not all companies follow the standard year when it comes to financial reporting. Micron saw revenues of US$4,085 billion for the quarter, down from US$6,643 billion in the previous quarter and down from US$7,687 billion the same quarter a year ago. However, the company made a net loss of US$195 million.

Micron's CEO Sanjay Mehrotra stated "Micron's strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn." These decisive actions include cutting 10 percent of its workforce according to Reuters, although this won't take place until sometime in 2023. Micron is also planning a cut in its CAPEX plans for its fiscal 2024, i.e. the company won't be investing as heavily as planned in new fabs, despite being granted money to do so by the US government.

YMTC Could Abandon Market for 3D NAND Flash by 2024 Following US Government's Decision to Place It on Entity List, Says TrendForce

Global market intelligence firm TrendForce states that Chinese memory manufacturer YMTC is now at risk of exiting the market for 3D NAND Flash products by 2024 following its formal placement on the Entity List of the US Commerce Department on December 15. From this point forward, the Commerce Department will be reviewing and approving individual transactions related to the exportation, re-exportation, and sales of equipment, technologies, and other related goods from the US to YMTC. With acquisitions of equipment parts and technical support from its US partners becoming very difficult and prolonged, YMTC is going to be severely constrained from raising its bit output. Hence, its foothold on the market for 3D NAND Flash products is expected to weaken as time goes by.

TrendForce points out that without the support of the key equipment providers, YMTC is now facing a huge technical obstacle in the development of its latest 3D NAND Flash technology known as Xtacking 3.0. In particular, raising yield rate for the 128L and 232L processes is going to be extremely challenging for the Chinese memory manufacturer. Taking account of this latest escalation in the US-China trade dispute, TrendForce has further corrected down its projections on YMTC's supply bit growth rate and the total NAND Flash supply bit growth rate for next year. YMTC supply bits were initially forecasted to grow by 60% YoY for 2023. However, there was a massive downward correction that put its growth rate at just 18%. Now, YMTC is forecasted to post a YoY decline of 7%, which is a complete reversal from the earlier projections.

Global Total Semiconductor Equipment Sales Forecast to Reach Record High in 2022

Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach a new high of $108.5 billion in 2022, rising 5.9% from the previous industry record of $102.5 billion in 2021, SEMI announced today in its Year-End Total Semiconductor Equipment Forecast - OEM Perspective at SEMICON Japan 2022. The record high caps three consecutive years of record revenue. The global total semiconductor manufacturing equipment market is expected to contract to $91.2 billion next year before rebounding in 2024 driven by both the front-end and back-end segments.

"Record fab constructions have driven total semiconductor manufacturing equipment sales to cross the $100 billion mark for a second straight year," said Ajit Manocha, SEMI president and CEO. "Emerging applications in multiple markets have set expectations for significant semiconductor industry growth this decade, which will necessitate further investments to expand production capacity."

Sabrent Launches Rocket NVMe SSD in M.2 2230 Form Factor for Steam Deck Compatibility

For those looking at upgrading—or adding an SSD—to their Steam Deck, there's now a new option from Sabrent. The company has launched an M.2 2230 sized version of its Rocket SSD that will be available in sizes of 256 GB, 512 GB and 1 TB. As one would expect, due to the form factor, we're looking at DRAM-less drives. Sabrent has gone with Phison's E21T controller and it has been paired with Micron's B47R, 176-layer NAND.

In other words, we're not talking about a high-performance drive here, but that might be a good thing as well, since it'll produce less heat, which should prevent drive throttling in the tiny space available inside the Steam Deck. Sabrent rates the drives as having a sequential read speed of up to 5,000 MB/s and a sequential write speed of up to 4,300 MB/s. The read IOPS are rated at up to 450K, with the write IOPS at up to 920K, which once again varies between the drive sizes. The 512 GB drive appears to have the overall best performance. The drives are rated for 200, 300 and 600 TBW and come with a five year warranty. No pricing has been revealed so far.

YMTC Introduces X3-9070 3D NAND Flash Powered by Innovative Xtacking 3.0 Architecture

YMTC today at the Flash Memory Summit (FMS) 2022 unveiled its X3-9070 TLC 3D NAND flash powered by Xtacking 3.0 architecture. Since its debut show at FMS 2018, YMTC's Xtacking technology has become a hallmark of the company's vision for innovation, and the approach to hybrid bonding has been widely recognized as one of the key enablers of the industry's future growth. Built out to be a common growth platform that drives value and innovation in the semiconductor ecosystem, YMTC's Xtacking 3.0 architecture opens up a world of opportunities for diversified applications in 5G, AloT, and beyond.

From 1.0 to 3.0, YMTC's Xtacking technology, a heterogeneous 3D integration architecture, has established a proven track record of success, as evidenced by a diverse portfolio of Xtacking NAND-based system solutions, including SATA III, PCIe Gen3 & Gen4 SSDs, as well as eMMC & UFS for mobile and embedded applications, garnering recognition from leading OEMs.

Micron Delivers the World's Most Advanced Client SSD Featuring 232-Layer NAND Technology

Micron Technology, Inc.,, today announced it is shipping the Micron 2550 NVMe SSD to global PC OEM customers for use in mainstream laptops and desktops. The 2550 is the world's first client SSD to ship using NAND over 200 layers. Delivering performance that eclipses the competition through its density and power advantages, the 2550 provides users with responsiveness and the low power consumption needed to extend battery life for work and home PCs.

"We focused on delivering a superior user experience for PC users with this SSD," said Praveen Vaidyanathan, vice president and general manager of the Client Storage Group at Micron. "The new 2550 SSD builds on our established and broadly adopted PCIe Gen4 architecture. It also incorporates Micron's industry-leading 232-layer NAND and focuses on thermal architecture and power design. These capabilities deliver impressive application performance and phenomenal power savings."

Enterprise SSD Revenue Slid to US$5.22 Billion for 3Q22 and Will Fall by Another 20% for 4Q22

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.

Chinese YMTC Achieves Mass-production of 232-layer 3D NAND, Beating Kioxia, Micron, Samsung, and SK Hynix

YMTC delivered on its roadmaps to achieve a mass-production 232-layer 3D NAND flash memory, beating entrenched players Kioxia, Micron Technology, Samsung Electronics, and SK Hynix, to the production 200+ layer feat. The Chinese memory and NAND flash giant announced this memory back in August 2022 as the YMTC X3-9070, along with its new Xtacking 3.0 architecture—a proprietary method by which the company can reliably stack a large number of NAND flash layers. Micron Technology is ready with a 232-layer 3D NAND flash of its own, although it hasn't hit a production ramp, yet. This is an incredible feat considering that YMTC only got into this business in 2016, compared to the other players that each have over two decades of market presence.

YMTC's ramp to 232-layer closely follows its unexpected 2020 feat of a production-grade 128-layer 3D NAND, which was groundbreaking enough to win a supply contract with Apple, before losing it in October 2022, due to political reasons (not technological reasons). The Xtacking 3.0 architecture involves back side source connect (BSSC) for the memory cell wafer, which leads to simpler process and lower cost compared to Xtacking 2.0 (up to 128-layers, which had introduced nickel silicide (NiSi) instead of tungsten silicide (WSi) for better device performance and I/O speed for CMOS wafer. The original Xtacking architecture from YMTC, which it debuted back in 2016, with layer counts going up to 64-layer, relied on cost-effective wafer-to-wafer bonding. The YMTC 232-layer 3D NAND flash should find plenty of takers in the consumer electronics industry, spanning smartphones, consumer storage devices, TVs, and other appliances. The high layer-count has a direct impact on density, which can help designers lower costs by using fewer chips, or increase capacity.

Semiconductor Revenue Growth Forecast Expects Decline by 3.6% in 2023

According to data from Gartner, the semiconductor market is expected to decline by up to 3.6 percent in 2023, from a growth of 4 percent this year and 26.3 percent in 2021. This might not be surprising to those that have followed recent developments in the semiconductor market, but it also looks like revenue for 2023 will be closer to that of 2021. This might in part be related to higher costs of manufacturing, but consumer demand is expected to be down in 2023, largely due to less disposable income, related to the current situation with rising inflation and increasing costs elsewhere.

Gartner claims that the enterprise market has been relatively stable and the consulting firm isn't expecting the enterprise market to decline as much as the consumer market when it comes to semiconductor demand. That said, Gartner is expecting the memory market to decline by up to 16.2 percent in 2023, as there's already an oversupply in the market. Likewise, it expects that the NAND flash market will see a decline by up to 13.7 percent in 2023. What isn't clear is how this weaker demand will affect retail prices, but as we've already seen, the DRAM and NAND flash manufacturers have already hit the brakes, to try and prevent a price crash.

Global NAND Flash Revenue Fell by 24.3% QoQ for 3Q22 as Suppliers Made Large Price Concessions That in Turn Impacted Their Results

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.

Projected YoY Growth Rate of Server Shipments for 2023 Has Been Revised Down to 2.8% as Inventory Adjustments Continue

Based on the latest data and research, TrendForce has further corrected down the projected YoY growth rate of whole server shipments for 2023 to 2.8%. Three factors are behind this revision. First, lead time has started to return to its usual length for most orders related to server components from 3Q23 onward. Seeing this, server OEMs and cloud service providers (CSPs) have also begun to correct the component mismatch issue by lowering demand for items that are in excess while maintaining a constant inventory level for items that are still in tight supply. This development, in turn, has reduced the flow of server orders going to ODMs. Second, the wave of demand that was generated earlier from the effects of the COVID-19 pandemic is dissipating. Hence, expansion activities have cooled off noticeably for services such as video streaming, e-commerce, etc. Among CSPs, Meta, Google, and ByteDance (TikTok) have lowered their server procurement quantities for next year. Lastly, the global economic outlook has remained fairly negative, so companies across most industry sectors have formulated a more conservative expenditure plan and scaled back IT-related spending for next year.

Micron Announces Further Actions to Address Market Conditions

Micron Technology, Inc., today announced that in response to market conditions, the company is reducing DRAM and NAND wafer starts by approximately 20% versus fiscal fourth quarter 2022. These reductions will be made across all technology nodes where Micron has meaningful output. Micron is also working toward additional capex cuts. In calendar 2023, Micron now expects its year-on-year bit supply growth to be negative for DRAM, and in the single-digit percentage range for NAND.

Recently, the market outlook for calendar 2023 has weakened. In order to significantly improve total inventory in the supply chain, Micron believes that in calendar 2023, year-on-year DRAM bit supply will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates. "Micron is taking bold and aggressive steps to reduce bit supply growth to limit the size of our inventory. We will continue to monitor industry conditions and make further adjustments as needed," said Micron President and CEO Sanjay Mehrotra. "Despite the near-term cyclical challenges, we remain confident in the secular demand drivers for our markets, and in the long term, expect memory and storage revenue growth to outpace that of the rest of the semiconductor industry."

Phison Elevates Technology Solutions in 2022

Phison Electronics Corp., a global leader in NAND flash controller and storage solutions, today announced significant milestones in 2022 that were highlighted by key partnerships, product innovations and advancements, and overall technology leadership.

"Despite market challenges, Phison is proud to have successfully navigated 2022 with strong innovation and technology leadership, two hallmarks of our company," said K.S. Pua, Phison CEO. "As a forward-thinking company, we cannot wait to bring more SSD customizations, innovations, and solutions to our partners, and customers next year."
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