News on Apr. 2nd, 2024, Surveys show that in the last 2-3 weeks, there has been a shortage of enterprise solid-state drives (SSDs) among NAND flash memory product companies.
With the surge in generative artificial intelligence, the construction of data centers by global tech giants continues unabated. In particular, the demand for storage devices needed by data centers is increasing explosively.
In response, Samsung Electronics plans to increase the price of enterprise SSDs by up to 25% in the second quarter of this year compared to the first quarter. It is reported that this will not only normalize the production of enterprise SSDs, which were originally on a production cutback, but also discussions are underway to increase production.
It has been revealed that Samsung Electronics will raise the price of enterprise SSDs in its NAND division, which experienced the most severe downturn last year, by 20% to 25% in the second quarter. Samsung originally planned to increase prices by 15% over the previous quarter, but due to the surge in demand, the price increase has expanded.
The reason Samsung Electronics is raising prices is that global tech giants, including NVIDIA and Tesla, are actively expanding their AI-related storage server operations. Major server companies like Dell Technologies and HP are competing to purchase SSDs.
Industry insiders in the semiconductor sector say, “SSD orders from server companies wanting to expand storage capacity have been flocking in recently,” and “some products are even experiencing shortages, with discussions about increasing production underway.”
Especially in the last two weeks of the first quarter, this demand was concentrated, and it is very likely that the preliminary results for the first quarter of Samsung Electronics, to be announced on the 5th, will be a positive factor. SK Hynix is also expected to benefit from the shortage of enterprise SSDs.
Kim Dong-won, head of the research department at KB Securities, explained, “The production cut strategy of NAND production companies has worked,” and “as supply is reduced, customer companies are worried about a shortage of goods in the second half of the year and the number of cases of advance orders is increasing.”
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