[Edaily Reporter Shin Young-bin] Driven by expanded investment in artificial intelligence (AI) infrastructure, the global NAND memory market grew to a record high in the first quarter of this year. As demand for high-performance storage devices for servers increased, NAND prices rose rapidly, and #Samsung Electronics maintained its top market share.

According to the Global NAND Memory Market Tracker released on the 6th by market research firm Counterpoint Research, global NAND market revenue reached approximately $46 billion (about 71 trillion won) in the first quarter of this year. This represents a 3.5-fold increase compared to the same period last year and a roughly 90% increase compared to the previous quarter.

Counterpoint analyzed that rising NAND prices, driven by expanding demand for AI infrastructure, led market growth. As investments in AI servers and data centers continued, demand for enterprise solid-state drives (eSSDs) for servers surged, leading to increased revenue for NAND manufacturers.

The expansion of the eSSD share was particularly notable. In Q1 of this year, server eSSDs accounted for 43% of the total NAND market. Counterpoint forecasts that the eSSD share will rise to over 60% by the end of the year. As demand for high-capacity, high-performance storage devices grows during AI training, inference, and data center operations, the focus of the NAND market is shifting from mobile and consumer products to server products.

By company, Samsung Electronics maintained its top position with a 29% market share. SK Hynix held onto second place with 18%. It is interpreted that domestic memory companies have benefited from the recovery of the NAND market as demand for high-value-added products for AI servers and data centers has increased.

Competition for third place is intensifying. While Kioxia, Micron, SanDisk, and China’s YMTC are competing in the mid-tier, YMTC’s growth has been particularly notable. YMTC’s market share expanded from 8% a year ago to 13% in the first quarter of this year. Driven by rising prices due to memory supply shortages and robust demand from local Chinese manufacturers, its revenue increased by approximately 445% year-over-year.

Counterpoint believes that if YMTC secures funding through an initial public offering (IPO), it will be able to accelerate its expansion of production capacity. Hwang Min-sung, Research Director at Counterpoint, stated, “If YMTC secures additional funding through an IPO, it will be able to embark on a full-scale expansion,” adding, “In that case, YMTC could even challenge Kioxia and Micron for the third spot.”

The NAND market struggled until last year due to slowing demand for smartphones and PCs, as well as oversupply. However, the landscape is rapidly changing as investment in AI data centers gains momentum. NAND market revenue in the first quarter of this year has already surpassed the total revenue for the entire year of 2023.

Industry observers believe that if demand for AI server storage continues to grow, the NAND market’s recovery will continue for the time being. However, factors such as the burden on customers due to soaring prices, the expansion of production capacity by Chinese companies, and the potential for increased supply are cited as potential sources of market volatility in the future.