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Time to Purchase an SSD? Samsung plans to lift its NAND flash costs by 20% per quarter

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Backside line: PC homeowners is likely to be smart to purchase themselves a brand new SSD now fairly than ready any longer. In response to a brand new report, Samsung, the world’s largest producer of flash reminiscence, needs to extend the wholesale worth of its NAND flash by as much as 20% per quarter for not less than the following two quarters.

An oversupply of DRAM and NAND in South Korea this 12 months has seen SSD costs fall by over 30% since January. In April, Samsung confirmed it was making ready to cut back its chip output within the hope that scaling back manufacturing would hold costs from dropping any additional. The corporate slashed much more manufacturing within the third quarter to assist tackle the chip glut.

Samsung mentioned in its quarterly earnings report final month that it had noticed indications that the chip market was recovering as demand stabilized and clients launched new merchandise. As such, it expects the corporate’s reminiscence enterprise to maintain bettering over the approaching months.

We additionally heard in October that analysts and producers had begun reporting rising revenue attributable to growing DRAM and NAND shipments within the third quarter of 2023, suggesting storage and reminiscence costs have been about to rise.

Market analysis agency Trendforce studies that Samsung has already elevated wholesale costs of its NAND chips by 10% to twenty% this quarter, which might result in client SSD costs leaping 5% to 13% by the top of the 12 months.

Trendforce believes Samsung will proceed growing the wholesale worth by 20% per quarter for not less than one other two quarters, which means distributors might be paying as much as 44% extra by the center of 2024. Shoppers will not be handing that a lot additional for his or her SSDs, however such a rise would nonetheless drive costs up round 15%.

Being the largest flash reminiscence producer implies that the place Samsung goes, others comply with; thus, we will anticipate different producers, most of whom additionally slashed manufacturing earlier this 12 months, to start out growing their wholesale costs as effectively. The underside line is that when you’re desirous about shopping for an SSD, it might in all probability be smart to get one sooner fairly than later.

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