DigiTimes reports that Chinese memory module manufacturers are aggressively offloading inventory due to weak consumer demand and increased regulatory scrutiny. This has caused a drop in SSD prices, despite high NAND wafer costs. Industry experts foresee market volatility in China persisting until year-end.
China’s push for domestic supply chain development led to rapid growth in the memory market, but tax audits in 2024 and a crackdown on smuggling have caused panic. Manufacturers’ attempts to clear inventory have been exacerbated by weaker-than-expected demand, both domestically and overseas.
“Definitely seeing more SSD deals lately as prices are trending down. 1TB budget NVMe are around the $60 price point, and SATA is breaking through the $50 range,” commented this Redditor. “Previous all time lows were $33-40/TB. 2TB drives are available for $100. Also, price alerts on DDR3 are getting close to the previous lows around 2022, as well as DDR4.”
Omdia data shows a 2.6% decrease in 256Gb TLC NAND flash prices, reflecting weak demand in smartphones and PCs. However, 256Gb QLC NAND prices for enterprise SSDs are expected to rise. Omdia has also lowered its AI PC penetration forecast, partly due to Intel’s restructuring.
TrendForce’s latest report adds to this picture, highlighting the influx of reball DDR4 and DDR5 chips into the spot market, further depressing prices. Some module houses are even selling high-priced client SSDs at a loss to reduce inventory. Contract prices for 3Q24 are also showing signs of loosening, and this trend is expected to continue into 4Q24. The spot price of 512Gb TLC wafers dropped by 3.73% this week, reaching US$2.710.
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