On September 30, according to foreign media reports, Toshiba storage executives, the world’s second-largest NAND flash chip manufacturer: it is not easy for Chinese memory manufacturers to catch up in two or three years. Toshiba memory believes that the market oversupply situation has ended, and the previous oversupply has squeezed the profit margin to the lowest level in 10 years.
Liu Maozhi, CEO of Toshiba storage technology, said in an interview at the 2019 China flash memory Market Summit held in Shenzhen: “it is not easy for newcomers to catch up in the last two or three years.”
The company expects that the oversupply in NAND market will be alleviated. At present, the size of the market is $406 billion.
However, Changjiang storage has invested US $24 billion in NAND project, which is expected to be put into operation by the end of 2019. Last year, it was reported that apple, the world’s largest buyer of flash memory, conducted a survey on Changjiang storage to evaluate its status as a potential supplier.
“I don’t know what will happen in four or five years,” Liu Maozhi said. “Chinese enterprises will have an advantage in the global market in the future. But Toshiba storage will also invest to ensure that we can compete in the long term.”
In June this year, Toshiba storage was sold to a consortium led by Bain Capital, an American private equity company, for $18 billion. The company believes that the market will improve before the end of this year and expects the recovery to continue until 2020.
“The price decline will stop,” said Toshikazu Takahashi, general manager of marketing. “From the fourth quarter of this year to next year, the market will be more balanced.”
This is mainly because the Chinese market is the fastest-growing memory chip market in the world. Takahashi JUNHE also said that the growing demand for chips used in next-generation 5g devices and data center servers, as well as the transformation of personal computers from hard disk drives to flash solid state drives, will have a positive impact.
At the same time, Chinese enterprises have become NAND suppliers with their own strength. “China does have the ambition to promote the development of its memory chip industry. The biggest competitor in the Chinese market is Changjiang storage,” said Mark Li, an analyst at Bernstein research “In our view, it is the only company… With a good intellectual property history and the most likely to have an impact. But it still has a long way to go to catch up.”
Toshiba is not the only company that thinks the market is about to rebound. Many companies, including Western Digital and micron technology, are optimistic about the future.
Toshiba storage will be renamed Kaixia from October 1, when its parent company Toshiba will complete the divestiture.
This article comes from Netease technology. This article is reprinted and shared.