TrendForce: Nand memory price drops by up to 20 percent in fourth quarter

Analyst agency TrendForce states that there is a surplus of nand memory at manufacturers of, among other things, memory cards and SSDs. As a result, the price for nand memory could fall by 15 to 20 percent in the fourth quarter of 2022.

The manufacturers want according to TrendForce at the moment mainly to eliminate their stocks and therefore buy less nand memory. The sellers of nand memory would lower their prices as a result, so that wafer prices for this type of memory are said to be 30 to 35 percent lower. In the fourth quarter of this year, this could lead to a 15 to 20 percent drop in nand memory prices.

According to the research firm, the demand for SSDs from computer manufacturers in the second half of the year is “much lower” than during the first half of 2022. This makes suppliers much more flexible in their pricing. They are reportedly doing this to keep the order volume up. In this business context, the price for SSDs would also fall by 15 to 20 percent in the fourth quarter of this year, according to TrendForce.

According to the agency, SSD manufacturers have also changed their tack and are focusing more on selling SSDs for enterprise environments. As many manufacturers in this segment of the market are becoming more competitive and more such SSDs will appear, TrendForce expects the average price of SSDs for enterprise environments to drop by 15 to 20 percent as well. Demand for eMMC memory was already weak in the past quarter, according to TrendForce, and is expected to decline further, according to the agency. As a result, TrendForce estimates that the prices of eMMC memory will fall by 13 to 18 percent next quarter.