Demand for data centers soared, NAND Flash revenue grew 8.3% in the first quarte

According to a survey conducted by DRAMeXchange, the NAND Flash (flash memory) bit shipments in the first quarter of 2020 were roughly the same as the previous quarter, and the average sales unit price increased, driving the overall industry revenue to grow 8.3% in the quarter. It reached US$13.6 billion.
 
Continuing the strong purchasing power of the data center that began in the fourth quarter of last year, the enterprise SSD in the first quarter was still in short supply. In addition, since the beginning of the year, the inventory levels of various suppliers at that time have returned to normal, which also led to a rise in the contract prices of major products. A new outbreak of pneumococcal pneumonia broke out during the Lunar New Year. According to a survey conducted by Jibang Consulting at that time, the recovery status of the server supply chain was better than that of laptops and smartphones, and therefore had limited impact on the demand for data centers. The production schedules and materials of the notebook and mobile phone brand factories are affected by the broken supply chain of the component and logistics chains, and production has resumed successively after March.


 Looking forward to the second quarter, applications such as remote services and streaming continue to drive the demand for data centers, and the surge in demand for remote offices and teaching in notebook computers has led to a substantial increase in corporate procurement and government bids. Therefore, the focus of the NAND Flash market demand in the second quarter is still on tablets, laptops and Enterprise SSDs. Due to the strong overall stock demand, the NAND Flash contract prices have continued to rise due to the continued shortage of the market. Jibang Consulting estimates that with the help of rising price and volume, industry revenue will continue to grow.