NAND Flash Prices Plunge Amid Supply Glut, Factory Output Cut

NAND flash prices are expected to slide due to oversupply, forcing memory chipmakers to cut production to match lower-than-expected orders from PC and smartphone manufacturers. From a report: The superabundance of stock is putting a financial strain on suppliers of NAND flash, according to TrendForce, which says growth rate forecasts are being revised down from 30 percent to 10-15 percent for 2025.

'NAND flash manufacturers have adopted more decisive production cuts, scaling back full-year output to curb bit supply growth. These measures are designed to swiftly alleviate market imbalances and lay the groundwork for a price recovery,' TrendForce stated.

Shrish Pant, Gartner director analyst and technology product leader, expects NAND flash pricing to remain weak for the first half of 2025, though he projects higher bit shipments for SSDs in the second half due to continuing AI server demand.

'Vendors are currently working tirelessly to discipline supply, which will lead to prices recovering in the second half of 2025. Long term, AI demand will continue to drive the demand for higher-capacity/better-performance SSDs,' Pant said. Commenting on the seasonal nature of the memory market, Pant told The Register: 'Buying patterns will mean that NAND flash prices will remain cyclical depending on hyperscalers' buying behavior.'

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