Datacenter and corporate clients have recently moved to adjust their NAND flash inventory in response to component shortages and global economic downturns, although demand for SSD is bound to surge in the medium and long term to support continuous digital transformation at businesses, according to Kioxia, a Japan-based NAND flash and SSD maker.
The company said since the second quarter of 2022, NAND flash demand for consumer electronics devices, such as including PCs and handsets, has declined significantly amid the lingering Russia-Ukraine war, global inflations, and pandemic impacts on the supply chain.
Kioxia has reported its second-quarter 2022 shipment volumes declined by over 20% sequentially due partly to COVID-caused logistics stagnations, but its revenues for the quarter rose 11% sequentially to JPY367.3 billion (US$2.72 billion), mainly bolstered by stable unit prices in the period.
Its operating incomes for the second quarter shot up 175% sequentially to JPY85.1 billion, thanks to a much lower comparison basis in the first quarter, when Kioxia incurred losses from chemical contaminations that occurred in late January in its two joint-venture fabs in Japan with Western Digital.
Article translated by Willis Ke
