On May 12th, reports from multiple South Korean media outlets indicated that Samsung Electronics has been gradually halting production of 2D NAND at its Hwaseong Campus Line 12 in South Korea since March this year. The facility is being converted into a backend "End Fab" for 1c DRAM (6th-generation 10nm-class DRAM). This production line, with a monthly capacity of 80,000 to 100,000 wafers, was Samsung's final 2D NAND base. Its shutdown formally concludes the 24-year era of 2D NAND that began in 2002 when Samsung first mass-produced 1Gb NAND flash memory globally.
Samsung's cessation of 2D NAND production is not an isolated event. This decision is closely linked to the discontinuation of MLC NAND products. MLC (Multi-Level Cell) stores 2 bits of data per cell. While its capacity is lower than TLC (3 bits) and QLC (4 bits), its data retention capability and endurance are significantly superior. MLC has long been the standard for markets demanding high reliability, such as medical equipment and industrial robotics. However, due to slim profit margins, Samsung has notified customers of the discontinuation of MLC NAND, with a complete halt in supply expected after final shipments in June 2026.
Following closely, Japan's Kioxia also formally notified customers in March of this year about its gradual exit from the 2D NAND market. According to the notification, the last order deadline for customers is September 30, 2026, with final shipments extending to December 31, 2028, and a complete withdrawal starting in 2029. This production halt is extensive, covering the full range of SLC, MLC, and TLC products across 32nm, 24nm, and 15nm process technologies, as well as all product forms including bare wafers, BGA, TSOP packages, and even eMMC, UFS, and SD cards. This represents the complete retirement of an entire older-generation technology platform.
Micron is also scaling back, currently maintaining MLC NAND production only for existing customer demand. Concurrently, Micron has officially terminated its consumer brand "Crucial" business, shifting its older-process wafer capacity entirely toward advanced memory required for AI data centers.
The exit speed of major manufacturers far outpaces the market's technological transition. Market research firm TrendForce predicts that global MLC NAND production capacity will plummet by 41.7% in 2026 compared to the previous year. More critically, as Samsung and Micron phase out old equipment, they are refusing to license core MLC manufacturing technology to external parties, making it nearly impossible for new players to enter and fill the gap.
This supply-demand imbalance has directly ignited price surges. Prices for some SLC and MLC products have seen double-digit monthly increases. The spot price for MLC 64Gb has skyrocketed from around $6 at the end of 2025 to a range of $20 to $28, representing an increase of over 300%. "Panic stockpiling" has reportedly reached its peak. Digitimes reported in March that while international giants are phasing out older 2D NAND process lines for low-capacity products, SLC/MLC NAND prices have surged dramatically. MLC NAND prices doubled in the first quarter of this year, with a further doubling expected in the second quarter. Any released capacity is immediately snapped up by customers, and the market gap is difficult to fill. Cumulatively, prices have risen nearly tenfold since the start of 2025.
Winbond Electronics emerges as the biggest beneficiary of the massive gap left in the 2D NAND market, which is shifting to Taiwanese manufacturers still committed to this sector. According to reports, Winbond has long focused on the niche market of floating-gate architecture SLC NAND, with products covering 1Gb to 8Gb capacities. It excels in applications requiring high endurance and high-temperature stability, such as automotive electronics and industrial control, and is seen by the industry as the biggest winner in receiving transferred orders following Kioxia's exit.
Macronix also possesses 19nm 2D NAND process capability, with products covering 2Gb to 32Gb, and is expected to benefit as well. Additionally, mainland Chinese companies including GigaDevice, Dosilicon, and Puya Semiconductor will also gain. Among them, GigaDevice is involved in both SLC/MLC NAND, Dosilicon focuses on small-to-medium capacity SLC/MLC NAND, and Puya specializes in small-to-medium capacity SPI SLC NAND.
A semiconductor industry commentator noted, "The concentration of resources toward high-value-added AI memory is dismantling the traditional memory market that supports the real economy. Cost pressures and supply chain risks for appliance and automotive manufacturers are likely to persist at least until next year."