
NAND flash oversupply set to drive production cuts in 2025
Manufacturers are going to cut production of NAND flash memory production in 2025 because they are facing weak demand, says TrendForce.
The market analyst has already predicted sharp falls in price in 1Q25 (NAND flash memory prices will fall in Q1, says TrendForce).
TrendForce has said that Micron, Kioxia/SanDisk, Samsung, and SK Hynix/Solidigm all have similar plans to cut production, thereby reducing manufacturing utilization rates and potentially accelerating industry consolidation. To try and limit costs NAND flash manufacturers are also delaying manufacturing upgrades, TrendForce said.
According to TrendFroce the factors responsible for this are:
- Sluggish sales of smartphones and notebook computers and slowing enterprise investment.
- NAND flash prices have been declining since 3Q24 and eroded profit margins are compelling manufacturers to make cuts
- Chinese suppliers are expanding their production aggressively alongside domestic substitution policies.
Micron and Kioxia/Western Digital are heavily reliant on NAND flash and do not have as large balancing sales in DRAM as their Korean competitors. Therefore these two are expected to experience greater financial impact, said TrendForce.
Related links and articles:
News articles:
NAND flash memory prices will fall in Q1, says TrendForce
Micron’s record revenue eclipsed by weak outlook
DRAM, NAND flash prices could jump 60 percent in 2024
