NAND Flash makers to reduce production due to weak demand and oversupply

NAND Flash manufacturers such as Micron, Kioxia / SanDisk, Samsung, and SK Hynix / Solidigm are planning to reduce production in 2025 due to weak demand and oversupply.

Nand Flash suppliers

Production cuts in NAND Flash are being implemented by lowering utilization rates and delaying process upgrades. Factors driving these actions include weak consumer electronics demand, declining NAND Flash prices, and growing competition from Chinese suppliers, TrendForce’s latest report indicates.

Micron, Kioxia, and SanDisk are among the companies implementing these cuts, with Kioxia and SanDisk facing greater financial impacts.

Samsung, despite its leadership in enterprise SSDs, is also reducing production due to inventory pressures and market competition in China.

SK Hynix has also adjusted its strategy in response to the market downturn.

While production cuts could stabilize prices in the short term, they may increase costs for downstream manufacturers, potentially reducing consumer demand.

TrendForce said these cuts could drive consolidation in the NAND Flash industry, posing risks to less competitive players. To stay competitive, NAND Flash manufacturers must focus on technological innovation, product differentiation, and niche markets.

NAND Flash Memory Market size is estimated at $55.73 billion in 2025, and is expected to reach $72.60 billion by 2030, according to Mordor Intelligence.

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