📊Executive Summary

Western Digital and Kioxia are facing significant disruptions in NAND flash component supply due to contamination at their jointly operated fabs in Japan. The incident, which occurred on February 9, has led to a reduction of at least 6.5 exabytes in supply and is expected to impact 10% of the global NAND market's quarterly consumption. Analysts predict NAND prices could rise by 5-7% in Q2 2022 due to this disruption. Kioxia has also indicated that its 3D NAND shipments will decline in the near term, while its 2D flash products remain unaffected. This situation highlights the fragility of the NAND supply chain and poses risks for procurement teams relying on these components....