On December 7, after Samsung reported a 20% quarterly price increase in the first half of next year, Western Digital sent a letter to inform customers that hard disk drives (HDD) and NAND would start floating price increases respectively. NAND prices are expected to increase by 55% in the next few quarters, and HDD prices will also increase significantly.

The price increase notice shows that its two major products, HDD and NAND Flash, will shorten the quotation time and adjust prices periodically. Among them, HDD product pricing will be reviewed weekly and prices are expected to increase in the first half of next year; NAND Flash product prices will increase in the next few quarters, and the price may be 55% higher than the current price.

The NAND chip market sentiment has weakened since the second half of 2022, quotations have plummeted, and the operations of related manufacturers are in trouble. With Samsung, Kioxia, SK Hynix, Western Digital, Micron and other benchmark manufacturers significantly reducing production, coupled with the gradual return of mobile phone and other terminal applications, the NAND chip market has bottomed out.

According to statistics, in 2022, Samsung ranks first in the global NAND chip market, followed by Kioxia, followed by SK Hynix in third place; Western Digital ranks fourth, with a market share of approximately 12.7%. Industry analysis shows that when major NAND chip manufacturers increase prices, related manufacturers are bound to also increase prices. The low-price inventory they originally held will enjoy huge price increase benefits.

Regarding the price increase of Western Digital, Taiwan NAND related companies are paying close attention to it. According to industry analysis, with this price increase of Western Digital, related manufacturers in Taiwan are bound to also increase their prices, and the low-price inventory they originally held will enjoy huge price increase benefits.

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