Pan Jiancheng, CEO of Phison (8299), a major flash memory control chip manufacturer, said yesterday (14th) that the Kioxia and Western Digital contamination incidents have affected the global supply of storage flash memory (NAND Flash), and the NAND market will usher in a second

Pan Jiancheng, CEO of Phison (8299), a major flash memory control chip manufacturer, said yesterday (14th) that the Kioxia and Western Digital contamination incidents have affected the global supply of storage flash memory (NAND Flash), and the NAND market will usher in the third In the second wave of price increases, Phison has also received heavy orders from business customers; in addition, PC customers this month have accepted the price increase of solid-state drives (SSDs) from original manufacturers, with an increase of about 10%.

Phison held a technical forum yesterday, and Pan Jiancheng released the above news. There has been noise in the semiconductor market recently, but Phison is bucking the trend and is expected to increase prices . Legal persons are optimistic that the industry chain will continue to rise, and Phison's products will follow the rising trend. Pan Jiancheng also predicted that as the impact of the global epidemic gradually eases, the market will be more prosperous in the second half of the year, and the benefits of the peak purchasing season at the end of the year can be expected. "This year may be a relatively crazy Christmas!"

Kioxia and Western Digital are ranked fourth in the world respectively. Daiwa's second-largest NAND chip factory, its joint venture in Yokkaichi, Japan, was caught in a raw material pollution storm in early February, causing production to be disrupted. The market estimated that 6.5EB-bit NAND chip output was affected, pushing up NAND chip quotations to stop falling in advance. After the rebound, Phison's sales surged to 6.38 billion yuan, a new high, with a monthly increase of 20.2% and an annual increase of 23.3%. The first quarter's revenue was 17.1 billion yuan, the busiest first quarter in history. Growth of 33%.

Pan Jiancheng said yesterday that The pollution incidents at the Kioxia and Western Digital factories had a great impact on the NAND market. It was originally expected that there would be a supply gap in NAND storage module products during the traditional peak season, and a second wave of price increases. Now it seems Come, second wave of price increase effect has begun to detonate. This month, some PC customers have accepted the price increase of SSD original manufacturers, with an increase of 10%.

Pan Jiancheng said that the impact of the Kioxia and Western Digital incidents is expected to fall in the traditional peak season of the second and third quarters, and supply shortages do exist from May to June. Even with the recent Russia-Ukraine war and global inflationary pressure, This has led to a weak consumer market, but based on past experience, demand will rebound strongly after three to four months of low market conditions. In addition, the third quarter has always been a traditional peak season. is optimistic that the growth in the third quarter of this year will be stronger than in previous years. .

Pan Jiancheng emphasized that Phison’s consumer market revenue only accounts for 20%, and the impact of the recent weak market buying sentiment is limited. Recently, lockdowns in Europe and the United States have been gradually lifted, and people have returned to offices since March and April. They have also begun to replace office equipment, which has in turn strengthened the demand for applications in the Phison business market.

Talking about the status of wafer foundry capacity acquisition, Pan Jiancheng said that the former 28/40nm process capacity is still seriously insufficient, mainly due to the influx of orders after Phison cooperated with AMD.