Samsung Cuts NAND Flash Production in Xi'an by Over 10% Amid Global Oversupply
Samsung Electronics has reportedly decided to reduce NAND Flash production at its manufacturing facility in Xi'an, China, by more than 10 percent in response to persistent global oversupply. This strategic adjustment aims to stabilize market prices and mitigate potential financial losses within Samsung's memory chip division, as industry forecasts predict a sharp decline in prices throughout the year. Specifically, the Xi’an plant is expected to lower its monthly output from 200,000 wafers to approximately 170,000 wafers. Market research firm TrendForce indicates that this move comes amid challenging conditions for the first quarter of 2025, characterized by rising inventory levels and weakening demand. Consequently, contract prices for NAND Flash are projected to drop by an average of 10 to 15 percent quarter-on-quarter. This production cut reflects broader efforts by major semiconductor manufacturers to balance supply with demand dynamics in a saturated market, preventing further erosion of profit margins while navigating uncertain economic conditions affecting the technology sector globally.
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Samsung Cuts NAND Flash Production in Xi'an by Over 10% Amid Global Oversupply
Samsung Electronics has reportedly decided to reduce NAND Flash production at its manufacturing facility in Xi'an, China, by more than 10 percent in response to persistent global oversupply. This strategic adjustment aims to stabilize market prices and mitigate potential financial losses within Samsung's memory chip division, as industry forecasts predict a sharp decline in prices throughout the year. Specifically, the Xi’an plant is expected to lower its monthly output from 200,000 wafers to approximately 170,000 wafers. Market research firm TrendForce indicates that this move comes amid challenging conditions for the first quarter of 2025, characterized by rising inventory levels and weakening demand. Consequently, contract prices for NAND Flash are projected to drop by an average of 10 to 15 percent quarter-on-quarter. This production cut reflects broader efforts by major semiconductor manufacturers to balance supply with demand dynamics in a saturated market, preventing further erosion of profit margins while navigating uncertain economic conditions affecting the technology sector globally.
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