The global NAND output value will decline in the fourth quarter of this year.

On November 27th, according to foreign media reports, data from the market research organization TrendForce showed that in the fourth quarter of 2020, the output value of the global NAND flash memory industry will decline sequentially.

Compared with the third quarter of 2020, the global NAND flash memory industry output value only increased by 0.3%, reaching 14.5 billion US dollars.

The analysis pointed out that the overall market conditions can be attributed to the increase in consumer electronics stocks before the end of the peak season in the third quarter and the recovery in demand for smartphones. Among them, the PC market has increased the demand for Chromebook bids due to remote teaching. The required capacity is low, and the bit consumption of NAND Flash is limited.

In addition to the above factors, in order to avoid supply chain interruption and increase the inventory level of parts and semi-finished products in the second quarter, server and data center customers started to reduce the purchase momentum and weakened demand performance in the third quarter. The contract prices of various NAND Flash products turned down in the third quarter.

At present, the NAND flash memory market is still oversupply, which will continue to drag down flash memory prices in the fourth quarter of this year. According to a source in the industry chain, due to oversupply in the market, the price of memory chips, including DRAM and NAND, is expected to decline by 10% in the fourth quarter of this year.

But in the long run, the storage market is still growing rapidly. According to a report by market research agency Yole Developpement, although the storage market has seasonal and cyclical fluctuations, the size of the global NAND storage market will continue to grow. Among them, the 3D NAND storage wafer manufacturing equipment market will also grow simultaneously. The market size will grow from 10.2 billion US dollars in 2019 to 17.5 billion US dollars in 2025, with a compound annual growth rate of 9%.