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Tokyo Electron competes with Lam Research as NAND prices rise
Monday, March 2, 2026 at 10:44 PM
Prices for NAND flash memory continue to rise, impacting the semiconductor manufacturing equipment market. Lam Research maintains a strong position in NAND production tools, while Tokyo Electron is increasingly competing for market share in this segment.
Context
NAND flash prices have surged to record highs in early 2026, with contract prices jumping as much as 55% to 90% in the first quarter alone. This "silent squeeze" is fueled by explosive demand for enterprise SSDs in AI data centers and strategic production cuts by major suppliers like Samsung and SK Hynix. As memory makers transition to high-density architectures to support intensive AI workloads, the market for 3D NAND manufacturing equipment has become a critical high-stakes battleground.
Tokyo Electron is aggressively challenging Lam Research’s long-standing dominance in the NAND etching sector, which has historically been Lam’s strongest moat. The rivalry centers on "cryogenic etching" technology, essential for producing next-generation 3D NAND with 400+ layers. While Lam Research leverages its massive installed base and Cryo 3.0 platform, Tokyo Electron has recently deployed advanced tools in South Korea capable of ultra-fast, high-aspect-ratio etching. With the global wafer fab equipment market projected to grow over 15% in 2026, this technological shift represents a potential multi-billion dollar swing in market share as manufacturers race to scale toward 1,000-layer milestones.
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Tokyo Electron
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Lam Research
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