Market Analysis: NAND Flash Price Rise Trend and Suppliers’ Strategic Layout in the First Quarter

According to the latest report from market research organization TrendForce, in the first quarter, despite the challenges of the traditional off-season, the demand for NAND Flash is expected to decline. However, thanks to the strong control and strategic adjustments of suppliers, product contract prices are expected to Achieve growth of 15% to 20%.

Detailed analysis shows that in order to avoid the risk of insufficient inventory, NAND Flash buyers continue to maintain a certain safety stock level. However, affected by the traditional off-season effect, demand in the first quarter still showed a downward trend. Against this background, suppliers have adopted a price-raising strategy to reduce losses, which is expected to push contract prices up by 15% to 20%.

TrendForce further pointed out that different NAND Flash suppliers have differences in terms of production. As some suppliers increase capacity utilization earlier, the new capacity is expected to be gradually realized in the second quarter. However, if subsequent market demand fails to meet expectations, suppliers may face greater pressure.

The report also mentioned that due to the large price increase of NAND Flash in the short term, further price growth needs to be supported by the recovery of demand in the enterprise solid-state drive (SSD) market. If the latter fails to achieve the expected pulling effect, the price increase of NAND Flash may slow down in the second half of the year.

In summary, the market dynamics of NAND Flash in the first quarter showed a unique trend of declining demand but rising prices, which reflects suppliers' flexible strategies and effective control of the market in the face of market challenges. Looking to the future, suppliers' strategic adjustments and changes in market demand will be key factors affecting NAND Flash price fluctuations.