Welcome Here  Shenzhen Mingjiada Electronics Co., Ltd.

February 12 news, according to foreign media ETnews reported today, Samsung Electronics and SK Hynix has begun to reduce the production of NAND flash memory, which is in response to the oversupply of the ‘natural production reduction’ measures through the process conversion.

According to industry sources, Samsung and SK Hynix have been in the process of technology migration since the end of last year, when they converted their NAND flash production lines from older processes to newer ones.

In order to produce the latest or high-end products, manufacturers must introduce and install new equipment, and the entire process takes about three months. During this time, the equipment is not ready for wafer processing, resulting in a natural reduction in shipments, which has the effect of reducing production. Because this type of production reduction is due to process conversion, rather than intentionally reduce the wafer input, so the semiconductor industry refers to it as ‘natural production reduction’.

Samsung Electronics is gradually converting its main production of 128-layer NAND flash memory products to more advanced products such as 176-layer, 238-layer and 286-layer.

SK Hynix, on the other hand, is carrying out mass production of the latest 238-layer and 321-layer products at its NAND production site in Cheongju, and is carrying out technology migration.

Industry insiders expect Samsung Electronics and SK Hynix to reduce NAND production by more than 10 per cent in the first quarter compared with the second half of last year. A source familiar with the matter said, ‘Samsung Electronics for NAND raw materials and components supply is decreasing.’

NAND flash memory prices have fallen since the second half of last year. According to market research firm DRAMeXchange, the average fixed transaction price of NAND general-purpose products fell from $4.9 in August last year to $2.18 in January this year, a drop of more than 50 per cent (about $15.9 at present).

With NAND flash makers cutting production, the focus is on whether the market can restore the balance between supply and demand. In addition to the above two, Micron has also officially announced a production cut. It is expected that the weak demand for NAND will continue in the first half of this year, and the policy of ‘strategic production reduction’ will be maintained.