Are chip prices going to rise again?

欧阳生

Are chip prices going to rise again? [Copy link]

According to Taiwanese media reports, Western Digital, the world's fourth largest storage chip supplier, has sent a price increase notification letter to its customers, with an expected cumulative increase of 55%!

It is reported that Western Digital sent a letter to its distributors and consumer customers on the 5th, saying that the company's hard disk products will adopt weekly pricing review, and prices are expected to rise in the first half of next year; among them, HDD prices will be reviewed weekly and quotations will be adjusted dynamically until the first half of next year, and Flash will also adopt cyclical price increases in the next few quarters; as for NAND chips, Western Digital expects prices to rise cyclically in the next few quarters, and the cumulative increase may be more than 50% higher than the current quotation, reaching 55%.

The NAND chip market has weakened since the second half of 2022, with quotations falling sharply and related manufacturers in trouble. With Samsung, Kioxia, SK Hynix, Western Digital, Micron and other leading manufacturers reducing production significantly, and mobile phones and other terminal applications gradually stabilizing and resuming the purchase trend, the NAND chip market has bottomed out.

According to statistics, Samsung ranked first in the global NAND chip market share in 2022, followed by Kioxia, and SK Hynix ranked third; Western Digital ranked fourth with a market share of approximately 12.7%.

Taiwan's NAND-related manufacturers are paying close attention to Western Digital's price increase. Industry analysts believe that with Western Digital's price increase, Taiwan's related manufacturers will also raise their prices, and the low-priced inventory they already hold will benefit greatly from the price increase.

Take ADATA as an example. As of the end of the third quarter, the company's inventory level was about NT$14.4 billion. Chairman Chen Libai revealed that the inventory continued to increase in October and November. As the price of memory chips continues to rise, it is expected that most of the profits will be realized next year. It is optimistic that ADATA's overall performance and gross profit next year will be better than this year. ADATA's revenue in November was NT$4.095 billion, a record high in more than 13 and a half years, an increase of 8% month-on-month and more than 50% year-on-year. The chairman emphasized that at this stage, the upstream chip suppliers' production reduction plan remains unchanged and their attitude towards price increases is strong. Not only the price increase and frequency of NAND chips this quarter exceeded expectations, but also there will be considerable room for price increases in the first quarter of next year.

wangerxian

Storage chip prices rising? Hard disks are sufficient at present, so let them rise.

秦天qintian0303

These are memory chips.

吾妻思萌

Yes, Nand has been falling for so long, it's time to pick up

qwqwqw2088

Price increases are the norm, nothing new

fhl12431

The price of chips has increased the most in recent years. There is nothing we can do about it. The technology is in other people's hands. They can raise the price in a matter of minutes.

lugl4313820

Why don’t the domestic bigwigs step up and take action? This way, consumers can benefit.

haocede

Chips have no direct relationship with our lives, but chip technology does affect our lives. Therefore, we should study hard and break through the chip bottleneck technology blockade as soon as possible.

xutong

lugl4313820 posted on 2023-12-9 09:35 The domestic bigwigs, why don’t you stand up and roll it up, so that consumers can benefit.

It's already very curly