Rumor
Samsung and SK Hynix to reduce NAND flash output to maximize profitability
Monday, January 19, 2026 at 11:10 PM
Samsung and SK Hynix are reportedly planning to reduce NAND flash production rather than increase it this year, aiming to maximize profits during a high-demand period.
Context
Samsung and SK Hynix are tightening the global NAND market by curbing annual wafer output to 4.68 million and 1.7 million units, respectively. This move prioritizes high-margin AI storage solutions over legacy consumer products, effectively engineering a "silent squeeze" to boost profitability. By shifting capacity toward high-bandwidth memory and next-generation QLC NAND, these manufacturers are successfully driving up contract prices for the first time in several fiscal cycles.
Price hikes are expected to hit 33-38% in the first quarter of 2026, with some enterprise SSD segments seeing increases of over 40%. Micron is similarly limiting output at its main production facilities, while Phison reports that nearly all 2026 production capacity is already committed to hyperscalers. This supply tightening coincides with the launch of Nvidia’s "Vera Rubin" accelerators, which require ten times more NAND than previous architectures, ensuring a prolonged period of pricing power for major memory suppliers.
Sources (2)
Related Companies
SK Hynix
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Micron
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Samsung