Dan’s Biz Bookshelf: ‘Dream First, Details Later
Happy’s Tech Talk #40: Factors in PTH Reliability—Hole Voids
Facing the Future: Time for Real Talk, Early and Often, Between Design and Fabrication
NAND Flash Manufacturers to Resume Production Cuts in 2025 to Ease Supply-Demand Imbalance and Stabilize Prices
January 22, 2025 | TrendForceEstimated reading time: 1 minute
TrendForce’s latest research report highlights that the NAND Flash industry will continue to face dual pressure from weak demand and oversupply in 2025. 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.
TrendForce reports that NAND Flash manufacturers are primarily implementing production cuts by lowering utilization rates and delaying process upgrades. These actions are driven by three major factors:
Firstly, core consumer electronics like smartphones and notebooks continue to suffer from sluggish shipments. Additionally, slowing corporate IT investments are dampening growth in enterprise SSD demand.
Secondly, 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.
Lastly, Chinese suppliers are aggressively expanding production thanks to domestic substitution policies, intensifying global market competition.
TrendForce points out that several NAND Flash manufacturers are implementing production cuts to address market challenges. Micron has already announced its plans, while Kioxia and its partner SanDisk are also preparing similar measures. These two companies—heavily reliant on NAND Flash products without the balancing revenue of DRAM businesses—are expected to experience a greater financial impact from reductions compared to their competitors.
Samsung, despite maintaining leadership in enterprise SSDs and other sectors, faces mounting inventory pressures due to intensifying competition in the Chinese market and its ongoing transition to new technologies. The company has also announced plans to reduce production this year.
SK hynix (including Solidigm), though performing strongly in the enterprise SSD segment in 2024, has not been immune to the broader demand slump, necessitating adjustments to its production strategy.
TrendForce notes that while short-term production cuts may help stabilize prices and alleviate pressure from oversupply, rising prices could also increase costs for downstream manufacturers, potentially dampening consumer demand.
In the long term, production reductions may accelerate industry consolidation, posing exit risks for less competitive players. To maintain viability, manufacturers need to intensify efforts in technological innovation and product differentiation, enhancing their competitive edge and tapping into niche markets.
Share on:
Suggested Items
Kitron Receives EUR 4 Million Contract for Defense Airborne Radar Application
07/02/2025 | KitronKitron has received an order valued at EUR 4 million to produce electronics modules for airborne radar application, destined for the US market.
Toni Patzner Becomes Global Head of Supply Chain Management at ASMPT SMT Solutions
07/01/2025 | ASMPTOn June 1, 2025, Toni Patzner assumed the position of Global Head of Supply Chain Management. The experienced manager succeeded Jörg Cwojdzinski, who retired after decades of service.
Driving Innovation: Direct Imaging vs. Conventional Exposure
07/01/2025 | Simon Khesin -- Column: Driving InnovationMy first camera used Kodak film. I even experimented with developing photos in the bathroom, though I usually dropped the film off at a Kodak center and received the prints two weeks later, only to discover that some images were out of focus or poorly framed. Today, every smartphone contains a high-quality camera capable of producing stunning images instantly.
Specially Developed for Laser Plastic Welding from LPKF
06/25/2025 | LPKFLPKF introduces TherMoPro, a thermographic analysis system specifically developed for laser plastic welding that transforms thermal data into concrete actionable insights. Through automated capture, evaluation, and interpretation of surface temperature patterns immediately after welding, the system provides unprecedented process transparency that correlates with product joining quality and long-term product stability.
Excellon Installs COBRA Hybrid Laser at Innovative Circuits
06/23/2025 | ExcellonExcellon is pleased to announce the successful installation of a second COBRA Hybrid Laser System at Innovative Circuits, located in Alpharetta, Georgia. The Excellon COBRA Hybrid Laser System uniquely combines both UV and CO₂ (IR) laser sources on a single platform—making it ideal for high-density prototype and production printed circuit boards (PCBs).