Tech News: Samsung Xi’an NAND Flash Output Cut Over 10%

According to reports, 三星电子 has decided to cut NAND Flash wafer production?at its Xi’an factory in China by over 10%. This strategic move aims to safeguard revenue amidst a global NAND oversupply, which has led to significant price declines expected throughout this year.

Currently, the Xi’an NAND Flash factory produces approximately 200,000 wafers per month. Following this reduction, output is anticipated to decrease to around 170,000 wafers monthly. Additionally, Samsung plans to adjust the supply from its Hwaseong facilities in South Korea, specifically from production lines 12 and 17, further lowering its overall capacity.

A recent industry report highlights that NAND Flash suppliers?are likely to face ongoing inventory growth and reduced order demand in Q1 2025, with average contract prices projected to drop by 10% to 15% quarter-on-quarter.

This is not Samsung’s first step toward controlling supply to stabilize the market. Back in 2023, the company reduced NAND wafer input by nearly half to mitigate losses caused by oversupply. Other key players, including SK Hynix, Micron, and Kioxia, followed suit, which eventually helped stabilize NAND prices. As demand recovered, Samsung gradually increased its monthly output to approximately 450,000 wafers.

The global NAND Flash market remains highly competitive, with major players such as 三星电子 , SK hynix , KIOXIA Group , Western Digital , 美光科技 , and 长江存储科技 vying for dominance. Despite leading the market in production capacity and share, Samsung faces mounting revenue challenges due to intense price competition in key segments such as PCs, mobile devices, and servers.

According to DRAMeXchange, as of October 2024, the fixed transaction price for mainstream NAND Flash products (128Gb 16Gx8 MLC) used in storage cards and USB drives stood at $3.07—down 29.18% from $4.34 in September.

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