Problems in the production of Western Digital (WD) will affect the increase in prices in the drive market. It is reported by the publication Tom’s Hardware.
Journalists drew attention to an email sent by Western Digital to its partners. It states that “in the short term, the costs of producing drives have increased significantly,” which will affect the cost of production. The problem is related to the contamination of materials in production in January, when a large amount of impurities was found in the NAND chips.
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WD estimated that about 6.5 exabytes of flash memory had to be written off due to the presence of impurities. Another leading storage maker, Kioxia, had similar problems, which had to recycle about 14 exabytes of memory. This represents almost a quarter of NAND production in the first quarter of 2022. In this regard, experts believe that SSD-drives may rise in price.
“Western Digital and Kioxia own approximately 35 percent of the NAND market, so price changes are likely to have a significant impact on the market,” the authors emphasized. According to TrendForce, price growth in the second quarter of the year will be about 5-10 percent.
In conclusion, the journalists analyzed the US SSD market and noted that prices for popular one-terabyte drives are at an all-time low. For this reason, experts believe that this is the right moment for a profitable purchase of SSD drives.
In mid-January, the processor manufacturer Elbrus warned of the lack of demand for its products. This circumstance will sharply reduce the demand for chips from MCST and other Russian suppliers, which, in turn, will make stocks of processors and components unclaimed.
Source: Lenta
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