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[News] Samsung and SK hynix Reportedly to Cut NAND Production by 10% in Q1 Amid Tech Migration
The memory market, particularly in the NAND Flash sector, appears to be entering a downturn. A recent report from etnews reveals that Samsung and SK hynix have started reducing their NAND flash production due to oversupply.
Industry sources mentioned in the report indicate that both companies’ NAND production in the first quarter of 2025 will drop by over 10% compared to the second half of 2024.
According to the analysis by TrendForce, NAND Flash prices have been in decline since 3Q24, and suppliers remain pessimistic about demand in the first half of 2025. The prolonged price weakness risks further eroding profit margins, thereby compelling manufacturers to reduce output.
In response, manufacturers including Micron, Kioxia/SanDisk, Samsung, and SK hynix/Solidigm have similar plans to cut production—a move that could accelerate industry consolidation in the long term, as noted by TrendForce.
The etnews report explains that the production cut is part of a “Tech Migration,” where old NAND production lines are being upgraded to new processes. During this transition, equipment is inactive, naturally reducing output and shipments, the report adds.
For instance, Samsung is reportedly in the process of replacing its 128-layer production with newer products like 176-layer, 238-layer, and 286-layer models, while SK hynix puts emphasis on the latest 238-layer and 321-layer products.
Notably, China’s NAND giant YMTC is reportedly catching up. According to a Tom’s Hardware report, YMTC has begun shipping its 5th-Gen 3D NAND memory with 294 total layers and 232 active layers.
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(Photo credit: SK hynix)
