[News] Samsung, SK hynix and Micron Reportedly Cut NAND Production amid Slowing Demand

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Is the winter really coming in the memory market just as 2025 kick starts? In addition to rumors of major players scaling down traditional DRAM production, a ZDNet report suggests that Samsung and SK hynix have recently cut back on legacy NAND production and begun upgrading underutilized old facilities to newer models.

Moreover, another report from South Korean media outlet fnnews notes that as the momentum for enterprise SSDs also shows signs of weakening, Micron has already started reducing NAND wafer input volumes.

Even eSSD Lacks Momentum

According to TrendForce, NAND Flash suppliers are expected to face mounting inventory levels and deteriorating demand for orders in 1Q25, with average contract prices forecast to decline by 10-15% quarter-over-quarter.

Notably, though enterprise SSD orders may offer some buffer against further price erosion, contract prices of enterprise SSD are expected to decline by a QoQ of 5-10% during the same period, as per TrendForce.

The fnnews report indicates that as eSSD growth slows, Samsung and SK hynix are expected to see lower first-quarter revenue. Industry experts cited by the report, therefore, note that major companies are considering large production cuts to protect prices.

Samsung, SK hynix Scale down Legacy NAND Production amid Oversupply Risk

On the other hand, at least for the time being, the reduction of NAND production for Samsung and SK hynix seems to be mainly focused on legacy products. As per ZDNet, both South Korean memory giants have requested their major partners to modify existing NAND equipment in the second half of 2025.

The ZDNet report further suggests that the oversupply of older NAND products, like 7th-generation NAND, which Samsung and SK hynix started mass production at the end of 2021, has deteriorated due to declining IT demand and the emergence of new competitors, such as Japan’s Kioxia and China’s YMTC.

As a result, the domestic memory industry has reduced 7th-generation NAND usage and asked partners to repurpose idle equipment for 8th and 9th-generation NAND production, the report adds.

Read more

• [News] Kioxia Reportedly Planning Production Cuts Amid NAND Flash Market Challenges
• [News] Micron Clouded by Weak Q2 Outlook; High-volume HBM3E 8H Ships to Second Major Customer this Month

(Photo credit: SK hynix)