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NAND chip makers cut production

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August 14, 2023

August 14, 2023 /SemiMedia/ -- According to reports, as the demand for products such as smartphones has not recovered, the NAND memory chip market continues to slump, and various manufacturers will further reduce production. Industry giants such as Samsung Electronics, SK Hynix and Micron are expected to further increase production cuts. Kioxia has decided to postpone the start of production of the new factory.

The report pointed out that due to the long-term demand for NAND has not yet recovered, Kioxia has postponed the commissioning time of the plant built in Kitakami, Iwate Prefecture, Japan, from the original 2023 to 2024. In addition, the delivery of plant equipment has also been delayed.

Samsung held a press conference at the end of July, saying that it will continue to reduce production in the second half of 2023. The chief financial officer of SK Hynix also stated at the press conference at the end of July that the inventory level of NAND is very high and will further reduce production by 5% to 10%. Micron Technology also stated that it will reduce the number of wafers invested by nearly 30%.

Nevertheless, some analysts are still optimistic that the DRAM market has bottomed out, and NAND demand may catch up. In addition, it is expected that the recent AI artificial intelligence boom will continue, and the demand for DRAM in this field will increase to 8 times, while that of NAND will increase to 3 times.

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