NAND Flash Revenue for 2Q21 Rises by 11% Q/Q to $16.4 Billion

NAND flash suppliers’ clients in the data center segment were gradually stepping up enterprise SSD procurement after finishing inventory adjustments, according to TrendForce, Inc.‘s investigations.

Moreover, the adoption rate of 4/8TB products in the enterprise SSD market increased substantially on account of the releases and adoption of the new server processor platforms from Intel and AMD.

Although the recent wave of Covid-19 outbreaks that struck Southeast Asia weakened smartphone sales in 2Q21, the quarterly total NAND flash bit shipments rose by nearly 9% Q/Q, as PC OEMs still had plenty of component orders in 2Q21 due to the fairly robust notebook demand during the period.

On the other hand, the shortage of controller ICs became more severe during the period, and the winter storm that battered Texas this February affected the operation of Samsung’s foundry fab Line S2 in Austin.

As demand for NAND flash products rose, the overall ASP also rose by nearly 7% Q/Q, and the quarterly total NAND flash revenue rose by 10.8% Q/Q to $16.4 billion in 2Q21.

Moving into 3Q21, clients in the data center segment will gradually become the main growth driver as they expand procurement of high-density enterprise SSDs. Furthermore, notebook demand is expected to remain at a fairly high level in 3Q21, thereby sustaining NAND flash demand bit growth and the ongoing rise in contract prices of NAND flash products. Hence, TrendForce currently forecasts that the quarterly total NAND flash revenue will not only again register a Q/Q increase but also hit a record high for 3Q21.

Samsung
For 2Q21, its bit shipments grew by around 8% Q/Q thanks to the strong demand from PC OEMs and hyperscalers aggressively building up their enterprise SSD inventories. The energetic stock-up activities and the shortage of controller ICs also caused Samsung’s ASP to rise by about 5% Q/Q. As a result, Samsung’s NAND flash revenue went up by 12.5% Q/Q to $5.59 billion in 2Q21.

SK hynix
Smartphone storage solutions account for the largest portion of its sales mix. Nevertheless, its sales performance during 2Q21 still benefitted from hyperscalers’ rising demand and the brisk flow of orders related to notebooks. Hence, SK hynix grew its bit shipments by 3% Q/Q. Its ASP also rose by about 8% Q/Q because of the general tightening of NAND flash supply and the shortage of controller ICs. All in all, NAND flash revenue went up by 10.8% Q/Q to $2.025 billion for 2Q21.

Kioxia
It benefitted from strong notebook demand and resurging procurement activities from its enterprise clients in 2Q21. In addition, its major clients in the smartphone segment once again kicked off their NAND flash procurement during the quarter. As a result, Kioxia’s bit shipment grew by about 7% Q/Q in 2Q21, while its ASP entered an upward trajectory for the first time in four quarters with a Q/Q growth of more than 10%. However, in light of the trailing performance of its SSSTC subsidiary (formerly Liteon’s SSD business) as well as the impact of unfavorable exchange rates, Kioxia’s revenue for 2Q21, when converted into US dollar, reached a mere $3.011 billion, an 8.5% Q/Q increase.

Western Digital
It put up a remarkable revenue performance for 2Q21 thanks to robust demand from the notebook segment, an upswing in enterprise SSD demand, and the shipment of its second-gen NVMe enterprise SSD, which resulted in a 39% Q/Q increase in its enterprise SSD revenue. On the other hand, while products related to Chia cryptocurrency mining gained significant media spotlight at the end of April, they made limited contributions to quarterly bit shipment, which underwent a mere 4% Q/Q increase in 2Q21, though its ASP increased by 7% Q/Q. All in all, NAND flash revenue reached $2.419 billion, an 11.2% Q/Q increase, in 2Q21.

Micron
Owing to strong demand from the data center and notebook segments, it grew its quarterly bit shipment by nearly 7% in 2Q21. In particular, QLC client SSDs enjoyed a growing penetration rate in the PC segment. With the shortage in the SSD market leading to a 3% Q/Q increase in ASP for 2Q21, its NAND flash revenue reached $1.812 billion, a 9.8% Q/Q increase.

Intel
Its quarterly bit shipment for 2Q21 underwent a near 10% Q/Q decline in spite of strong enterprise SSD demand from the data center segment. This decline can primarily be attributed to the shortage of such key components as controller ICs and PMICs. Compared to other major NAND flash suppliers, the company mainly procures some of these components from a single source, thereby exacerbating the impact of the component shortage on its operations, including the shipment of enterprise SSDs. Nevertheless, its ASP still grew by about 9% Q/Q on the back of persistently strong demand from clients. Quarterly revenue from its NAND flash business reached $1.098 billion, a 0.8% Q/Q decline, in 2Q21.