Memory makers cut production as NAND flash prices slide

Bottom line: The NAND flash industry is facing mounting pressure due to a combination of weak demand, oversupply, and declining prices. This challenging market environment has persisted throughout the year, forcing memory manufacturers to reassess their production strategies. However, industry experts believe that despite the current downturn, the second half of 2025 could bring signs of recovery as demand stabilizes and supply adjustments take effect.

The oversupply of NAND flash has forced memory chipmakers to implement production cuts in response to lower-than-expected orders from PC and smartphone manufacturers. Major players in the industry, including Micron, Kioxia/SanDisk, Samsung, and SK hynix/Solidigm, have all announced plans to scale back their manufacturing operations.

This strategy aims to bring supply in line with the revised demand forecasts, which, according to TrendForce, have been adjusted downward from an annual growth rate of 30 percent to a more modest 10 percent to 15 percent ...