TrendForce reports that an amalgamation of off-season effects and high inflation caused a slump in purchasing enthusiasm in markets like North American server ODM and China This led to a surge in Q1 inventory levels for enterprise SSD suppliers, contrary to the anticipated reduction The situation was not remedied by a decrease in production either, forcing suppliers to resort to price cuts to boost shipment volumes Additionally, the strain from high inflation eroded purchasing momentum in these markets, instigating a simultaneous dip in both volume and price for enterprise SSDs This resulted in a significant 473% decline in Q1 revenue, reducing it to US$1998 billion However, after the Q1 inventory liquidation, there’s been a projected slight uptick in purchasing demand for server ODM orders in Q2 Consequently, enterprise SSD suppliers’ revenue is anticipated to revert to a growth trajectory in the second quarter
Kioxia rose to third place in Q1 despite its enterprise SSD revenue dropping 397% to approximately US$296 million TrendForce asserts that Kioxia’s long-term trajectory will be influenced significantly by the potential completion of its merger with WDC This merger could reshape future R&D strategies for enterprise SSD products WDC may shift its focus toward the development of client SSDs if further opportunities for integration arise Concurrently, Kioxia could channel more resources into enhancing customer verification processes This strategic reallocation of resources could bolster the shipment volume of enterprise SSDs, promoting growth in the sector
Samsung has been expanding its market footprint through aggressive pricing since 4Q22 However, significant revisions in server shipment targets for 2023 led to a contraction in Q1 demand for enterprise SSD orders, particularly from North American clients Consequently, Samsung’s Q1 enterprise SSD revenue fell to US$801 million, marking a QoQ decline of 55% Samsung’s Q2 revenue could experience a further dip as North American clients continue to make ongoing inventory adjustments, but a potential recovery is anticipated for the second half of the year
Notably, Samsung holds a competitive edge in technology with the launch of a 128-L PCIe 50 product As the penetration rate of Arm-based server platforms escalates and the demand for AI servers is projected to surge, Samsung’s market leadership hinges on aligning its product development to meet the transmission speed requirements of these burgeoning platforms
SK Group (SK hynix & Solidigm) also felt the impact of the general market slowdown, reporting Q1 enterprise SSD revenue of US$458 million—a QoQ decrease of 364% A resurgence in demand is anticipated as China’s overall inventory liquidation strategy and total procurement volume gradually stabilize This could result in SK Group’s Q2 enterprise SSD revenue growth rate and market share outperforming the average
WDC, battered by order cuts and a price war, has seen its enterprise SSD shipments curtailed, leading to a Q1 revenue of US$225 million—a staggering QoQ drop of 50% Furthermore, WDC’s current R&D pace for enterprise SSDs has lagged behind competitors with a notable decline in NAND Flash profits this year, leading to the company opting to trim capital investment This strategy may ultimately heighten competitive pressure on WDC’s enterprise SSDs As WDC’s primary North American clients increasingly shift to in-house manufacturing, the growth rate of enterprise SSD revenue could decelerate However, this slowdown could be mitigated if WDC successfully obtains approval for its PCIe SSD solutions from a wider range of clients
Micron experienced a downturn in Q1 due to a slump in server ODM demand, with its revenue falling to US$218 million—a QoQ decrease of 292% Despite being the first supplier to introduce a 176-L PCIe 40 product, the launch was hindered by slower-than-expected verification progress and tepid market demand, which led to delayed shipment of the new products TrendForce posits that Micron’s constraints in the Chinese market, which impact the shipment volumes of enterprise SSDs, necessitate an expansion of collaborations with clients in other regions In particular, the progress of verification with North American clients will be crucial and will largely dictate Micron’s revenue performance
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
TrendForce has reported a significant decline in global LED demand throughout 2022, resulting in a noticeable downturn in both LED lighting and video wall markets The industry was faced with an LED chip surplus, which led to a continuous drop in prices throughout the year
The combined impact of volume and price reduction resulted in a sharp 23% annual decrease in the market value of global LED chips in 2022, shrinking to just US$278 billion Despite this challenging landscape, it is predicted that the LED industry will recover in 2023, primarily driven by a resurgence in the LED lighting market The anticipated rebound could elevate the LED chip production value, with estimates placing it at US$292 billion for 2023
LED Commercial lighting is expected to lead the comeback charge in the broader LED lighting market From a supply chain perspective, the LED lighting industry hit a low point in 2018, leading to an exodus of several small and medium-sized enterprises Moreover, some lighting LED chip manufacturers have been consistently transitioning into more profitable sectors such as display technology This shift resulted in reduced supply and correspondingly lower inventory levels
In response to these changes, several LED companies opted to increase their prices The primary increase has been seen in the price of LED chips specifically used for lighting applications The most significant price increase was observed for low-power light chips with an area of 300 mil2 or less, which saw a price rise of about 3–5% In certain cases, the price hike for chips of unique sizes reached up to 10%
TrendForce survey data indicated a growing trend among LED supply chain companies toward raising prices This trend is anticipated to persist due to the high demand for LED chips Many companies see this price adjustment as a means to mitigate losses and actively reduce orders with low-gross margins
TrendForce analysis underscores that the majority of the world’s LED chip suppliers are based in China In recent years, heightened industry competition has forced some companies to exit the LED chip market At the same time, Chinese LED chip manufacturers have decreased their focus on the chip sector Most of the suppliers who have remained in the market have reported consistent losses over an extended period
In China, the recent price rise for low-power light chips is viewed as a short-term strategy to bolster profitability Looking ahead, TrendForce predicts that by striking a balance between supply and demand, and increasing industry concentration, the LED industry will gradually return to a state of normalcy
For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at graceli@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
TrendForce’s recent analysis reveals that purchasing momentum in the NAND Flash market has decelerated during 1Q23 Despite suppliers aggressively slashing prices to stimulate sales, the bit shipment volume of NAND Flash witnessed only a marginal growth of 21% over the quarter Coupled with a 15% drop in ASP, the NAND Flash industry registered a QoQ revenue decrease of 161%, amounting to about US$863 billion
SK Group (SK hynix & Solidigm) and WDC experienced a simultaneous fall in volume and price, leading to a reduction in revenue of more than 20% for each The first quarter saw SK Group’s NAND Flash revenue dwindle to US$132 billion, a 248% QoQ decline This decrease was due to sluggish PC market demand, which cut the revenue contribution from the previously dominating SSD sector from over 50% in 4Q22 to just 20–25% in 1Q23 WDC, likewise, felt the sting of the off-season, with NAND Flash revenue sinking by 211% to approximately US$131 billion
With demand from major end-use sectors like servers, laptops, and smartphones remaining stagnant, Samsung sought to bolster bit shipments by pushing high-capacity products However, this strategy resulted in an 183% decrease in ASP over the quarter and brought Samsung’s NAND Flash revenue down by 158% to around US$293 billion in 1Q23 Similarly, Kioxia grappled with weakened consumer demand, and despite an 18% rise in bit shipment volume, a substantial 203% reduction in ASP led to a 59% QoQ decrease in revenue, totaling about US$185 billion
Micron’s Q1 NAND Flash revenue fell significantly by 198% to US$890 million However, as PC and mobile customer inventories return to healthy levels, Micron expects its inventory peak to have been reached in 1Q23 and hopes to break from the oversupply situation by implementing ongoing production reduction measures
Looking ahead to 2Q23, TrendForce anticipates an increase in buyer purchasing intentions, spurred in part by Samsung’s recent foray into production reduction In particular, module manufacturers and PC OEMs appear to be leading the charge, with total NAND Flash bit shipment volume predicted to rise by 52% QoQ Despite this, ongoing inventory clearance pressures are expected to cause a further decline in ASP across all products As a result, TrendForce forecasts that Q2 revenue for the NAND Flash industry will continue its downward trend, with an estimated decrease of around 79% from the previous quarter
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
TrendForce reports the total sales of New Energy Vehicles (NEVs)—comprising BEVs, PHEVs, and FCVs—reached 2656 million units in the first quarter of 2023, marking a 28% YoY increase Sales of BEVs contributed 1942 million units to this total, a YoY growth of 26%, while PHEV sales amounted to 711,000 units, signifying a 34% YoY increase
Tesla's strategic move to reduce prices resulted in a record-breaking first quarter, with sales reaching 423,000 units and boosting its market share to 218% This considerable resurgence comes after three consecutive quarters where Tesla's BEV market share slipped below 20%, illustrating the immediate impact of price adjustments in market consolidation BYD and Wuling secured second and third positions, respectively However, Wuling, primarily known for its economical mini EVs, reported a notable dip in sales, selling less than 80,000 units in the first quarter This drop can be primarily attributed to the influx of competitors in the low-cost mini-vehicle market Hyundai and Kia took sixth and ninth places, respectively, with Hyundai achieving a new quarterly sales record Volkswagen secured the fifth position, and two major luxury car brands, BMW and Mercedes-Benz, also made the list, indicating their hastened pace toward electrification
BYD continues its dominance of the PHEV market with a solid 37% market share Denza, an EV brand co-founded by BYD and Daimler, climbed to the eighth position in the first quarter BYD's strategy of diversification continues to evolve positively, with the imminent introduction of the high-end luxury brand Yangwang Li Auto ascended to second place in the first quarter, with multiple models contributing to its quarterly sales of 52,000 units, increasing its market share to 73% The three major European luxury brands—BMW, Mercedes-Benz, and Volvo—held onto their top spots in the PHEV sales rankings, despite experiencing a YoY decline in sales
TrendForce asserts that as countries worldwide work towards increasing the proportion of zero-emission vehicles, sales of new energy vehicles are expected to continue their upward trajectory This rise, thereby boosting their representation in the overall vehicle market, will create new opportunities within the automotive industry However, the second half of the year could bring uncertainties due to factors such as high inflation, escalating interest rates, and potential consumer spending cuts Additionally, the ability of smaller car manufacturers to weather these economic challenges remains unclear
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
TrendForce predicts a dramatic surge in AI server shipments for 2023, with an estimated 12 million units—outfitted with GPUs, FPGAs, and ASICs—destined for markets around the world, marking a robust YoY growth of 384% This increase resonates with the mounting demand for AI servers and chips, resulting in AI servers poised to constitute nearly 9% of the total server shipments, a figure projected to increase to 15% by 2026 TrendForce has revised its CAGR forecast for AI server shipments between 2022 and 2026 upwards to an ambitious 22% Furthermore, AI chip shipments in 2023 are slated to increase by an impressive 46%
TrendForce analysis indicates that NVIDIA’s GPUs currently dominate the AI server market, commanding an impressive 60–70% market share Hot on its heels are ASIC chips, independently developed by CSPs, seizing over 20% of the market Three crucial factors fuel NVIDIA’s market dominance: First, NVIDIA’s A100 and A800 models are sought after by both American and Chinese CSPs Interestingly, the demand curve for 2H23 is predicted to gradually tilt towards the newer H100 and H800 models These models carry an ASP that’s 2–25 times that of the A100 and A800, amplifying their allure Furthermore, NVIDIA isn’t resting on its laurels; it’s proactively bolstering the appeal of these models through aggressive promotion of its self-developed machine solutions, such as DGX and HGX
Second, the profitability of high-end GPUs, specifically the A100 and H100 models, plays a vital role TrendForce research suggests that NVIDIA’s supreme positioning in the GPU market allows for a significant price variation of the H100, which could amount to a stark difference of nearly US$5,000, depending on the buyer’s purchase volume
Lastly, the pervasive influence of ChatBOTs and AI computations is predicted to persist, expanding its footprint across various professional fields such as cloud and e-commerce services, intelligent manufacturing, financial insurance, smart healthcare, and advanced driver-assistance systems as we move into the latter half of the year Simultaneously, there’s been a noticeable upswing in demand for AI servers—particularly cloud-based ones equipped with 4–8 GPUs and edge AI servers boasting 2–4 GPUs TrendForce forecasts an annual growth rate surprising 50% in the shipment of AI servers armed with NVIDIA’s flagship A100 and H100 models
TrendForce reports that HBM, a high-speed RAM interface deployed in advanced GPUs, is poised for a significant uptick in demand The forthcoming H100 GPU from NVIDIA, slated for release this year, is equipped with the faster HBM3 technology This improvement over the previous HBM2e standard amplifies the computation performance of AI server systems As the need for cutting-edge GPUs—including NVIDIA’s A100 and H100, AMD’s MI200 and MI300, and Google’s proprietary TPU—continues to escalate, TrendForce forecasts a striking 58% YoY increase in HBM demand for 2023, with an estimated further boost of 30% expected in 2024
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
