Kioxia cuts 3D NAND flash production
TrendForce previously stated that in the third quarter of 2022, the inventory backlog in the supply chain has a tendency to spread. At the same time, distributors are slow to destock, and customers generally take a wait-and-see attitude, which makes the balance of supply and demand deteriorate rapidly. The decline in NAND flash prices is expected to widen from 30% to 35% in the third quarter of 2023 and may drop another 20% in the fourth quarter.
According to TomsHardware, Kioxia’s factories in Yokkaichi and Kitakami will cut production of 3D NAND flash memory, with an initial plan to reduce it by about 30%. As for how long this situation will last, there is no confirmation yet. Due to the cooperation between Western Digital and Kioxia in the production of 3D NAND flash memory, it may also be affected, but the former has not issued a relevant statement for the time being.
Although Kioxia is not the first 3D NAND flash memory manufacturer to reduce production, it is the first to announce a specific production reduction ratio. Micron has also implicitly stated that it will reduce the production of 3D NAND flash memory but did not disclose the specific amount, and even the production speed of the new 232-layer 3D NAND flash memory will inevitably slow down. Rising costs due to inflation, sluggish consumer markets, and high inventory levels are all reasons why manufacturers choose to reduce production.
The price of 3D NAND flash memory chips has fallen sharply recently. It is not surprising that Kioxia chose to reduce production to reduce inventory. It is believed that other 3D NAND flash memory manufacturers will follow suit and reduce production to balance supply and demand to stabilize prices.