TrendForce: Kioxia and Western Digital's capacity utilization will return to 88%, driving NAND flash production growth by 10.9% in 2024

According to news from this site on March 20, TrendForce recently released a report stating that Kioxia and Western Digital took the lead in improving production capacity utilization, driving the annual NAND Flash output to increase by 10.9% year-on-year.

According to TrendForce’s analysis, the upward trend in NAND Flash prices is expected to continue until the second quarter of 2024. Some suppliers hope to cut losses, lower costs and start to return to profitability this year.

The capacity utilization rates of Kioxia and Western Digital returned to nearly 90% in March this year, while other companies did not significantly increase their production scale.

TrendForce TrendForce further pointed out that in order to meet the peak season demand in the second half of the year, Kioxia/Western Digital has maintained its own inventory at a low level. The focus of this expanded production is on 112-layer NAND Flash memory chips and some 2D products. The move is expected to be profitable this year and is expected to drive NAND Flash storage production growth by 10.9% through 2024.

In 2024, as NAND Flash prices reversed, supplier inventory levels gradually declined. In order to maintain long-term cost competitiveness, suppliers have begun to accelerate the pace of process upgrades.

Among them, Samsung and Micron are the most active. It is estimated that in the fourth quarter of this year, the output of the two companies' processes above 200 layers will exceed 40%.

In 2024, the production focus of Kioxia and Western Digital will still be on the 112th floor, benefiting from subsidy support from the Japanese government. It is expected that the introduction of new equipment will begin in the second half of this year, which will increase the output of 218 layers. It is predicted that by 2025, the newly added 218 layers of output will be more active.

According to Kioxia’s current process research and development plan, in order to achieve a more optimized cost structure and hope to re-establish its leading position in technology and cost, future products will directly move towards processes with more than 300 layers. This is the reason why Kioxia strategic goals for future development.

The report reference address is attached to this site

• TrendForce TrendForce: Kioxia and Western Digital took the lead in improving capacity utilization, driving year-round growth The annual growth rate of NAND Flash supply bits increased to 10.9%

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