Based on a report from the South Korean media outlet The Elec, Samsung Electronics is set to officially halt the production of 2D NAND flash memory in March this year. The company plans to repurpose Line 12 at its Hwaseong campus into a cutting-edge 1c DRAM back-end production line, with an impressive monthly capacity of 80,000 to 100,000 12-inch wafers. This strategic move signifies Samsung's complete withdrawal from the 2D NAND market, as it redirects its focus towards high-end storage solutions, including 3D V-NAND and HBM4, to cater to the escalating demand for AI computing power.

Post-transformation, Samsung's Xi'an factory will specialize in 3D NAND production, while DRAM capacity will be geared towards the 1c process. This shift will support the mass production of HBM4 and the expansion of the server market. The global supply gap for 2D NAND is anticipated to persist until 2027. Meanwhile, manufacturers such as GigaDevice are well-positioned to seize overseas market share, bolstering their pricing power and gross margins in the process.