YG PRESS NEWS – NAND industry returns to profitability by 2024

Product Related

March 28, 2024

To attain profitability, suppliers will cautiously manage capacity utilization, ensuring a slightly undersupplied market.

2023 OUTLOOK

NAND industry revenue went down below $40 billion (-33% YoY ), its lowest point since 2016.

In Q4, strategic production cuts from all the players began to yield results, as evidenced by a 17% pricing increase and an improved operating margin of -30%.

China – U.S. tensions: a shadow over the year, with YMTC and Micron bearing the brunt of sanctions.

Following a significant decline in ASP from H2 2022 to Q3 2023, the NAND industry closed out 2023 with its lowest annual operating margin of the decade, hovering at nearly -49%, announces Yole Group, in its quarterly NAND Market Monitor.

In 2023, NAND industry revenue plummeted to below $40 billion with -33% YoY. Those figures mark the lowest level of the NAND market since 2016.

From the end of Q3 2023, the production cuts implemented by suppliers in response to supply imbalances began to yield results, with pricing showing signs of recovery. These production cuts exceeded 30% in Q4 and are anticipated to remain at similar levels in Q1.

Looking ahead to 2024, memory suppliers are set to carefully manage capacity utilization to sustain an undersupplied market and restore profit margins to healthier levels. Full capacity utilization isn’t anticipated before the end of 2024 and possibly extending into early 2025.

Yole Group foresees prices continuing to rise throughout 2024, with operating margins potentially turning positive by the second half of the year… More about 2024 forecasts and trends? Do not hesitate to contact us.

Titre du visuel

june 2021

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