According to a report by Kuai Technology on November 29, media outlets reported that Kioxia, one of the major suppliers of NAND Flash, plans to reduce production in December 2024, which is expected to help stop the decline in NAND Flash prices and possibly even reverse the trend.

Market research firm TrendForce pointed out that NAND Flash faces numerous challenges in the fourth quarter, but Kioxia's production reduction plan may bring a turnaround to the market.

Reducing production will help alleviate the problem of oversupply, especially when enterprise-grade SSD prices are expected to remain stable.

Additionally, as data center construction is completed, cloud service providers (CSPs) may shift their capital expenditures towards enterprise-grade SSDs, further boosting demand for enterprise-grade SSDs with capacities exceeding 16TB.

In the short term, NAND Flash spot and contract prices are declining by 5% to 10% quarter-on-quarter, but it is expected that with the impact of production cuts by manufacturers, combined with the continued strong demand for high-capacity eSSDs from AI servers and general-purpose servers, the NAND Flash market is expected to restore supply-demand balance in 2025.

In terms of revenue, TrendForce data shows that global NAND flash shipments in the third quarter of 2024 declined by 2% quarter-on-quarter, but the average selling price increased by 7%, driving overall revenue to $17.6 billion, up 4.8% quarter-on-quarter.

NAND flash pricing trends in the third quarter diverged across different application areas, with strong demand for enterprise-grade SSDs driving up average selling prices by nearly 15%, while client-grade SSD prices saw only modest growth amid a decline in orders.