Institutions: Storage prices will plummet by more than 50% next year

According to the Economic Daily, institutions such as Nomura and JPMorgan Chase have warned that the storage industry will be even more bleak in the first half of next year, and prices will plunge by more than 50%. Although storage manufacturers and distributors are actively destocking, the results will not gradually appear until Q1 next year. Among all kinds of storage, manufacturers related to encoded flash memory (NOR Flash) will outperform pure DRAM manufacturers.

According to the news, JPMorgan Chase issued a report after visiting storage plants in Taiwan, such as Nanya, Licheng, Winbond, Macronix, etc., and pointed out that most manufacturers expect that demand will not rebound rapidly, but will gradually recover. Mainly due to the increase in inventory in the supply chain, and in the overall global economic downturn, it will take longer to consume inventory. It is estimated that the overall situation will not start to improve until Q2 or the second half of next year. In addition, due to the strong demand for high-density NOR chips in the automotive/industrial field, NOR Flash related manufacturers will outperform pure DRAM manufacturers.

Affected by factors such as the global economic downturn and the new crown epidemic, foreign media reports predict that the global semiconductor market will shrink by 4% to US$557 billion in 2023, which is the first annual contraction since 2019. In addition, the World Semiconductor Trade Statistics Organization (WSTS) said that the memory market, which accounts for more than one-fifth of the total, will decline by 17%.