Computer storage prices to rise enormously in 2024

After a rebound, the price of NAND Flash memory is expected to rise by an additional 50% or even higher in 2024, market analysts say. That would make computer SSD drives more expensive.

SSD price increases have already become noticeable, ending the era of exceptionally affordable storage. However, the market research institute TrendForce expects an additional sharp increase in prices as manufacturers can’t recoup their expenses and inventories are running out.

“The current quotations still show a gap from reaching the breakeven point for suppliers such as Samsung, Kioxia, SK Hynix, and Micron,” TrendForce writes. “Major domestic players in the NAND Flash industry indicate that NAND Flash suppliers, driven by the goal of profitability, will continue to aggressively raise prices.”

For major manufacturers to break even, NAND Flash prices need to increase by over 40%, yet to achieve profitability, at least 50% or even higher price increases are expected.

NAND prices bottomed out in July 2023. Since then, 512GB TLC chips have been 120% pricier, tomshardware.com noted.

Samsung, the market leader with a 31.4% share, has reduced NAND chip production since September of last year with the goal of accelerating destocking and price stabilization. Other producers also shifted production to DRAM, which was more profitable.

Now, TrendForce is seeing a structural supply shortage, providing an advantage for chip manufacturers to control prices.

There are no low-priced sources left available for purchase. However, buyers are still purchasing and maintaining high inventory levels.