January 7, 2025 /SemiMedia/ — According to reports, following announcements of production cuts by Kioxia and Micron, market sources reveal that Samsung and SK Hynix have also reduced consumer NAND Flash production. This marks the first report of production cuts by South Korean manufacturers. Industry experts believe this move will help restore supply-demand balance in the market. Both Micron and Samsung have also indicated that NAND capital expenditures will slow in 2025, with a focus on adjusting production lines, significantly reducing MLC production while increasing QLC output.

TrendForce's latest research indicates that NAND Flash suppliers are likely to face rising inventory levels and weakening order demand in the first quarter of 2025, with average contract prices expected to decline by 10% to 15% quarter-on-quarter. Wafer price drops may stabilize somewhat, but module product pricing will vary depending on demand. While enterprise SSD orders remain steady and could mitigate the price decline, Client SSD and UFS products are expected to face further price reductions due to weak consumer market demand and cautious purchasing behavior.

TrendForce predicts that, given uncertain demand and continued price declines in the first half of 2025, module manufacturers will have limited demand for specific NAND Flash wafer specifications. Amid weak purchasing interest and intensifying competition among manufacturers, TrendForce estimates that wafer contract prices in Q1 2025 could drop by 13% to 18% quarter-on-quarter, with the potential for even steeper declines.