On January 20th, news emerged that Samsung Electronics and SK Hynix, the two industry giants commanding over 60% of the global NAND flash memory market share, are poised to scale down their NAND flash memory production in the current year. At present, amidst the intensifying competition in inference artificial intelligence, an arena spearheaded by NVIDIA, the supply of NAND flash memory—a vital component—is experiencing a squeeze. Consequently, prices for servers, PCs, and mobile devices are anticipated to keep climbing.

Analysts highlight that this scenario, reminiscent of the DRAM market dynamics, is set to substantially bolster the operating profit margins of both Samsung Electronics and SK Hynix. According to South Korea's Chosun Ilbo, which cited data from market research firm Omdia, Samsung Electronics has revised its NAND wafer production figures downward for this year. The production is set to drop from 4.9 million units in the previous year to 4.68 million units. Meanwhile, SK Hynix is expected to see its NAND flash memory production decline from roughly 1.9 million units last year to 1.7 million units this year.