TrendForce today released a report saying that although server shipments have improved due to improved material supply, coupled with bidding by Chinese telecom vendors and byte-hopping demand, the progress of server ODM construction data centers has not been significantly affected. However, the overall Enterprise SSD market still failed to beat the impact of NAND Flash price drops, with third quarter revenue falling to $5.22 billion (about 36.592 billion yuan), down 28.7 percent sequentially.
The top five global enterprise SSD brand manufacturers in terms of revenue in the third quarter of 2022 were Samsung (Samsung), SK Group (SK Group; SK hynix & Solidigm), Western Digital (WDC), Micron (Micron), and Kioxia (Kioxia).
▲ Source: TrendForce Tiburon Consulting
The company’s market share declined to 40.6% in the third quarter from 44.5% in the second quarter.
Samsung’s Enterprise SSD revenue in the third quarter was US$2.12 billion (RMB14.861 billion), while its market share declined to 40.6% from 44.5% in the second quarter.
SK Group revenue declined to $1.21 billion (~RMB 8.482 billion) in the third quarter.
Western Digital, which has been focused on Enterprise SSD product development since 2021, reported third-quarter revenue of $670 million (approximately RMB 4.697 billion).
Micron’s third-quarter revenue declined to $660 million (approximately RMB 4,627 million) due to a slight downward revision in server OEM demand in the third quarter.
Kioxia’s PCIe 4.0 revenue was $560 million (approximately RMB 3.926 billion) in the third quarter as volume began to pick up and demand for SAS interface products remained stable.
Looking ahead to the fourth quarter, TrendForce indicates that the economy continues to be weak and companies are beginning to converge on related capital equipment spending, and Server OEM inventory levels are beginning to climb. In order to de-stocking, the purchasing momentum is also obviously revised. Along with the rapid deterioration of the overall NAND Flash market oversupply, the average contract price of Enterprise SSD products is expected to decline by more than 20% in the fourth quarter, and Enterprise SSD revenue is expected to drop by more than 20% in the fourth quarter.
