September 13, 2023 /SemiMedia/ -- According to semiconductor industry insiders, Samsung Electronics has stepped up NAND flash production cuts and has reduced NAND flash memory production by about 40%. It is expected that the production reduction will reach 50% by the end of 2023.
According to sources, Samsung has cut NAND flash production by 20% in the first half of 2023. The 50% reduction is expected to last at least one quarter before the end of the year.
Sources also said that the purpose of Samsung's production reduction is to accelerate the transformation of its process technology to improve its product structure.
The price of NAND flash memory has risen as Samsung and other manufacturers have drastically cut production or reduced investment. According to the supply chain, Samsung’s 512Gb NAND flash wafer price rose to $1.60 from the previous $1.40. It is expected that the unit price of 512Gb wafers will reach $2 by the end of this year.
Sources pointed out that as wafer costs increase, the price of flash memory devices such as consumer SSDs and enterprise solutions is rising and is expected to continue to rise before the end of the year.