Kioxia Slashes 3D NAND Production as SSD Sales Plummet
Kioxia announced that it will cut production of 3D NAND memory at its Yokkaichi and Kitakami factories. Demand for PCs and many other devices is slowing due to high inflation, geopolitical tensions and macroeconomic factors. Producers of commodities such as 3D NAND have to reduce production as they want to reduce inventories and avoid oversupply.
Kioxia said it will reduce its wafer starting volume by about 30% starting tomorrow. However, a 30% reduction in starting wafers does not automatically mean a 30% reduction in 3D NAND bit output. The exact process technology used to process the wafers can have a very different impact on bit output. Additionally, Kioxia has not disclosed how much it plans to cut production of 3D NAND wafers.
Kioxia runs a fab and shares output with Western Digital, and the American company has not made a similar statement at the time of writing, but it is expected to follow suit.
On Thursday, Micron said it would delay the production ramp of its latest 232-layer 3D NAND memory device to reduce costs associated with the ramp and avoid oversupply in the market. State Drives (SSD) including the best he SSD for enthusiasts.
In fact, earlier this week, TrendForce analysts reported that 3D TLC NAND and 3D QLC NAND wafer prices fell 30% to 35% in Q3 compared to Q2, with another 20% to Said it would drop 25%. Q4 compared to Q3 due to slower demand for new he PCs, servers and consumer electronics.
Given such a drastic 3D NAND price cut, it’s no surprise that Kioxia is cutting production to lower inventory levels. It’s unclear how other of his 3D NAND makers will react, but ultimately he has two options. Keep flash memory production at the current level, offer lower prices and gain market share from Kioxia, and either suffer losses or keep production in balance with supply and demand and at least bring prices down to current levels. level.