NAND Flash Revenue Drops 24% in Q1 2025 Amid Inventory Pressures

The top five NAND Flash brand manufacturers reported a combined revenue of $120.2 billion for the first quarter of 2025, marking a nearly 24% decrease compared to the previous quarter. This decline was driven by inventory pressures and a drop in demand from end customers, which led to a 15% decrease in the average selling price (ASP) and a 7% reduction in shipment volume. Despite a slight rebound in product prices towards the end of the quarter, the overall revenue for the top five manufacturers still saw a significant decline.

The leading NAND Flash suppliers faced varying challenges during the first quarter. Samsung, the market leader, saw its revenue decrease by approximately 25% to $42 billion due to reduced demand for Enterprise SSDs. However, a rebound in NAND Flash wafer prices in March helped improve Samsung's profitability. With NVIDIA's new products gradually increasing in shipment volume, Samsung's revenue is expected to recover in the coming quarters.

SK Group, which includes SK hynix and Solidigm, faced challenges due to the off-season effect and the need to clear 30TB SSD inventory. This resulted in a decline in both shipment volume and ASP, leading to a revenue decrease to $21.9 billion. Micron Technology, on the other hand, benefited from an increase in shipment volume, allowing it to maintain a revenue of $20.3 billion despite a decrease in ASP. This performance enabled Micron to secure the third position in quarterly revenue for the first time.

Kioxia's revenue fell to $19.2 billion due to weak off-season demand, which affected both shipment volume and ASP. SanDisk, following its split from WDC, reported a slight decrease in both shipment volume and ASP, resulting in a revenue of $17 billion. SanDisk plans to increase the shipment of QLC products to optimize profitability and fund future process upgrades, aiming to strengthen its long-term competitive position.

Looking ahead to the second quarter, as end-buyer inventories return to healthy levels and NAND Flash prices stabilize, the revenue performance of brand manufacturers is expected to improve. The international situation, which has prompted some manufacturers to actively stock up, is also anticipated to contribute to a 10% increase in revenue for the second quarter.