[News] SK hynix CEO Dismisses DeepSeek Concerns, Predicts NAND Market Recovery by Late 2025

Despite concerns that China’s low-cost AI model DeepSeek could disrupt the tech industry, SK hynix dismisses such fears. President and CEO Kwak Noh-jung sees it as a long-term driver of semiconductor demand and new opportunities, according to etnews and ZDNet.

Kwak noted that though in the short term, DeepSeek’s low-cost AI models may cause fluctuations, it will drive AI adoption ultimately, as highlighted in the reports.

The ZDNet report suggests that the rise of AI models like DeepSeek has sparked worries about reduced AI server investment by tech giants and a potential hit to the HBM memory market, which were then dismissed by Kwak.

However, in terms of the sluggish NAND market, Kwak remains relatively conservative, noting that a recovery is expected by the end of 2025. As the industry is working to stabilize the market, the conditions would improve soon, he added.

TrendForce‘s latest findings reveal that the NAND Flash market continues to be plagued by oversupply in the first quarter of 2025, leading to sustained price declines and financial strain for suppliers. However, TrendForce anticipates a significant improvement in the market’s supply-demand balance in the second half of the year.

Entering 2025, NAND Flash manufacturers have adopted more decisive production cuts, scaling back full-year output to curb bit supply growth. These measures are designed to swiftly alleviate market imbalances and lay the groundwork for a price recovery, as per TrendForce.

A recent report from etnews reveals that Samsung and SK hynix have started reducing their NAND flash production due to oversupply, implying that both companies’ NAND production in the first quarter of 2025 will drop by over 10% compared to the second half of 2024.

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• [News] Samsung and SK hynix Reportedly to Cut NAND Production by 10% in Q1 Amid Tech Migration

(Photo credit: SK hynix)