Warning SSD prices are about to rise again
- Writer: info@mps-asia.com at
- Tech news
However, analyst firm TrendForce predicts that the supply-demand balance of SSDs will improve significantly in the second half of 2025. According to TrendForce, several key factors will contribute to this recovery, including reduced NAND chip production, reduced inventory in the smartphone sector, and growing demand due to the development of artificial intelligence (AI).
NAND chip makers are planning to cut production
TrendForce said that over the past two years, flash memory manufacturers have become acutely aware of the serious impact of oversupply, especially as the annual growth rate of flash memory demand has slowed from 30% to 10-15%. This has forced them to adjust their production strategies to cope with the prolonged price decline.
The balance of SSD supply and demand is gradually changing.
NAND memory chipmakers are expected to cut production more aggressively around 2025 to quickly correct the market imbalance and lay the groundwork for a price recovery. Interestingly, China’s current smartphone replacement subsidy policy is in effect, promising to stimulate phone sales and boost NAND memory consumption.
Nvidia plans to ramp up shipments of Blackwell series products in the second half of the year, which will significantly increase demand for enterprise SSDs. Furthermore, DeepSeek's achievements in reducing the cost of deploying AI servers will help small and medium-sized enterprises to more actively integrate AI, thereby enhancing their competitiveness.
SSDs with capacities greater than 30 TB are expected to become the preferred storage solution due to their high performance and low total cost of ownership. The emergence of AI-enabled PCs and workstations will also facilitate the integration of AI into everyday applications, potentially leading to long-term growth in SSD capacity in the consumer segment. Finally, the reduced computing power requirements could drive the penetration of low-cost AI-enabled smartphones into the market, thereby increasing the demand for flash memory.