Japan is also exploring the possibilities for more subsidies to boost foundry capacity within the country as nations around the world build up sovereign AI capabilities.
AI driving demand
Most of 2021-2022 proved to be a considerable challenge for companies in the NAND space, as they fought off a weak PC and smartphone market.
TrendForce data showed a significant oversupply of NAND memory, with global NAND flash revenue plummeting 45% year-over-year in the fourth quarter of 2024.
However, there does seem to be light at the end of the tunnel for these companies.
During its most recent earnings call, Western Digital reported an increase in Average Selling Prices (ASPs), attributed to what it calls strategic inventory management and portfolio optimization.
The company said it anticipates generative AI to drive demand and potentially increase ASPs across its flash portfolio, with the technology expected to trigger a refresh cycle in PCs and smartphones.
