Western Digital to raise NAND flash prices by up to 55%

Western Digital has informed customers that prices for NAND flash memory may rise by up to 55% in the coming quarters, according to industry sources. NAND flash prices have been rising sharply in the second half of 2023, and the extent of increases in the fourth quarter has been much faster than expected.

Western Digital has already notified its customers that it will raise the prices for both NAND and HDD. The notification comes as memory chip vendors continue to slash output with inventory correction in the supply chain drawing to a close. Western Digital told the customers that production adjustments in response to market developments have prevented it from fully meeting demand, the sources said.

The company reportedly told its customers that NAND flash prices will undergo regular upward adjustments in the next few quarters, with accumulated increases to reach 55% compared to the present levels, the company reportedly told its customers. HDD prices will be reviewed every week, and the upward price trend is expected to last into the first half of 2024, the sources cited Western Digital as telling its customers.

The sources said other NAND vendors have raised prices without notifying their customers. Western Digital is alerting mainly its channel customers to the upcoming price increases, possibly trying to motivate them to stock up as soon as possible, the sources said. Some customers have been reluctant to build up their inventory as demand in the market remains weak, the sources added.

Western Digital’s bid to merge with Kioxia has failed due to opposition by SK Hynix. Now, Western Digital plans to split its HDD and flash memory businesses.