Cheaper SSDs incoming? KIOXIA reportedly ends memory production cuts

Kioxia restores production lines to 100% capacity following over a year of cuts

The NAND flash market is about to get competitive again, with Kioxia, the Japanese memory manufacturer, reportedly ending their production cuts on their Yokkaichi and Kitakami facilities. Previously, Kioxia had lowered production at these facilities for over 20 months, reducing their NAND memory supply.

Memory producers work hard to maintain a balance between supply and demand. If the memory supply is too high, prices drop and NAND production becomes less profitable. If supply drops too low, pricing rises and forces manufacturers to boost manufacturing to boost their market share and profitability.

Kioxia’s Yokkaichi and Kitakami facilities are now reportedly (Trendforce) running at 100% capacity. This is due to recovering demand for smartphones, enterprise and PC products. Now, Kioxia are hoping to increase their market share with increased 3D NAND supply.

NAND memory pricing has increased in recent quarters, and memory inventories are depleted. This makes now the time for KIOXIA to boost memory production. The good news for consumers is that this increased supply will lessen NAND price increases, and may (in time) lower the cost of NAND memory.

For us consumers, boosted memory production capacity results in lower SSD and PC pricing. The NAND market is rules by the laws of supply and demand. Basically, that means that we need to see increased supply or lowered demand to see NAND pricing decrease. With this in mind, we welcome Kioxia’s boosted manufacturing efforts.

You can join the discussion on KIOXIA ending their memory production cuts on the OC3D Forums.

Mark Campbell

Mark Campbell

A Northern Irish father, husband, and techie that works to turn tea and coffee into articles when he isn’t painting his extensive minis collection or using things to make other things.

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