South Korean flash memory chip manufacturers have begun to increase production capacity, and solid-state drives and other products may have a chance to reduce prices by the end of the year

#科技资讯South Korean NAND flash chip manufacturers have begun to increase production capacity, and products such as solid-state drives may have the hope of stabilizing or reducing prices by the end of the year. In 2023, the price of solid-state drives remained low until the end of last year, which was one of the trends brought about by the reduction of production capacity by Samsung and others. Now these manufacturers are starting to increase their products again, including Samsung, SK Hynix, Kioxia and Western Digital. View the full text: https://ourl.co/104548

Last year, the prices of products such as solid-state drives were almost at their lowest point due to market cycle issues. The reasons included sufficient supply, little growth in market demand, and competition among different manufacturers.

However, by the end of last year, the prices of solid-state drives began to gradually rise. The price of solid-state drives mainly depends on the price of NAND flash memory chips. At that time, manufacturers including Samsung were reducing supply by artificially cutting production capacity to stabilize prices.

Among them, Western Digital reduced the production capacity of its NAND factory to less than 50%, SK Hynix also reduced its production capacity, and Samsung Electronics finally decided to reduce its production capacity after holding on for a while.

After reducing production capacity, the artificial intelligence industry has experienced explosive growth again. The industry's demand for storage is also quite high, so the price of NAND chips has once again been rising.

Now that the market has greater demand and current prices are still profitable for NAND manufacturers, the benefits of market competition are apparent: manufacturers such as Samsung, SK Hynix, Kioxia and Western Digital have begun to increase production capacity in the hope of selling more products as soon as possible and gaining profits in advance.

A local Korean website reported that the demand for flash memory in the artificial intelligence industry has increased significantly in 2024, especially the demand for high-end NAND products suitable for artificial intelligence data centers, which has stimulated NAND manufacturers to increase production capacity again.

Samsung's NAND flash memory chip production capacity has recovered to about 70% of its previous level, while SK Hynix has increased the production capacity of large-capacity NAND products. The production capacity of the NAND factory jointly operated by Western Digital and Kioxia has also increased to about 90%.

The increase in production capacity means that the supply in the market will gradually increase. Although consumer-grade SSDs are not mentioned, after a period of increased production capacity, the price of consumer-grade SSDs is expected to stabilize or decline.

Therefore, netizens who are planning to install or replace solid-state drives may wish to observe the subsequent situation, especially pay attention to the forecasts of market analysis company TrendForce, which has a relatively high forecast accuracy.

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