As QLC NAND technology is rapidly penetrating the market, NAND controller chip vendor Phison Electronics expects UFS QLC to become the mainstream storage spec for mobile devices, with a key turning point arriving in 2025.
In late February, Micron announced it had shipped samples of its sixth-generation DRAM (1γ DRAM), becoming the first in the industry to do so. However, its design and manufacturing approach differ from those of Samsung Electronics and SK Hynix.
High bandwidth memory (HBM) major client Nvidia is said to have visited Samsung Electronics' advanced packaging plant again, just over a month after their last visit. Industry sources speculate that Samsung is supplying fifth-generation HBM3E and has entered the final stage of quality testing.
AI development has become the key growth driver for NAND flash storage applications, leading to a significant surge in computing power and "storage capacity." According to Tai Wei, CEO of China Flash Market (CFM), the NAND market is swiftly emerging from the shadows seen in 2024. NAND costs are expected to stabilize in the second quarter before rising generally in the third quarter.
Despite the relatively stagnant demand for mobile phones and PCs in the first half of 2025, Kioxia, the leader in NAND flash, anticipates that overall NAND shipments in 2025 will increase by 10-15% as consumer clients resume their NAND purchases, coupled with robust demand for AI servers. This could potentially result in a substantial supply shortage in the latter half of the year.
The National Science and Technology Council (NSTC) has disclosed the combined output of Taiwan's three major science parks reached NT$4.76 trillion (US$144.42 billion) in 2024, setting a record high with an increase of 20.73% from 2023, driven mainly by demand for emerging technologies, such as AI, and advanced semiconductor processes.
Taiwanese memory module maker Adata Technology achieved record profitability in 2024, with all four major profit indicators reaching record highs, including gross margin, operating margin, pre-tax margin, and net profit margin. The record profitability was driven by rising memory prices and inventory management strategies. The company's net profit increased 90% compared to 2023, also setting a new high.
Deepseek's rapid adoption is accelerating AI application growth in China, fueling demand for enterprise-grade SSDs. DapuStor Chairman Yafei Yang said AI all-in-one machines are lowering deployment barriers for small and medium-sized enterprises, setting the stage for a 20% surge in SSD demand by 2025.
NAND flash controller chip supplier Phison forecasts that the first quarter will be the low point for annual revenue. As manufacturers successfully adjust prices and DeepSeek drives AI devices toward edge computing development, market supply and demand may gradually tighten in the second half of the year, leading to steady revenue growth.
The memory market is showing early signs of recovery, with supply chain conditions stabilizing and manufacturers pushing through price hikes. SanDisk, recently spun off from Western Digital, will raise prices by approximately 10% starting April 1, citing rising costs and an expected supply-demand shift. Adata noted a surge in inventory stocking among channel partners and new orders from major clients, forecasting the industry's bottom in the first quarter of 2025, with a turnaround expected in the second quarter.
The Semiconductor Industry Association (SIA) has announced that global semiconductor sales hit US$56.5 billion during the month of January 2025, an increase of 17.9% compared to the January 2024 total of US$47.9 billion and 1.7% less than the December 2024 total of US$57.5 billion.
Micron has appointed former TSMC chairman Mark Liu as a board member. Multiple South Korean media outlets report this move as Micron's attempt to expand its market share in high bandwidth memory (HBM), aiming to catch up with SK Hynix.
The South Korean firms' strategy of expanding investment into a crisis-stricken market succeeded in sending them to the top of the global memory market. However, Chinese memory makers are copying this strategy, posing strong challenges to their dominance in a market that has been hit by slow demand over recent years.
Following his retirement as chairman of Taiwan Semiconductor Manufacturing Company (TSMC), Mark Liu shifted his focus to the United States. The latest announcement by Micron Technology regarding Liu's appointment to its board has sent shockwaves through the industry.
Micron Technology Inc. has named former TSMC chairman Mark Liu to its board of directors, marking his first board appointment at an international semiconductor firm since stepping down from TSMC.
As competition intensifies in the development of large language models and with the launch of DeepSeek, the industry is beginning to seek memory alternatives outside of high bandwidth memory (HBM). AP Memory has announced that it is fully committed to integrating very high-bandwidth memory (VHM) technology into artificial intelligence high-performance computing (AI HPC) design production, aiming to complete its first AI HPC product design in 2025.
The memory industry observes that advance stockpiling in response to tariffs began before the Lunar New Year. Under the pressure of future tariff increases, Chinese memory module producers may shift their operating strategy of hoarding massive volumes of products, potentially resulting in improved market conditions.
SK Hynix America, the US branch of SK Hynix, is seeing significant revenue growth due to the demand for HBM. In 2024, its revenue rose about 2.6 times from the previous year.
Micron Technology has delivered its sixth-generation 10nm DRAM samples ahead of schedule, pressuring Samsung Electronics as it struggles with yield issues and design adjustments. South Korean media, including ZDNet Korea and Seoul Economic Daily, report that Micron's 1γ DRAM shipments are outpacing market leader Samsung, raising industry concerns.
On February 27th, Adata announced the formalization of a strategic partnership with Itochu Corporation, a prominent Japanese conglomerate, and its subsidiary, Itochu Retail Link Corporation. The collaboration aims to capitalize on emerging opportunities in the Japanese memory market.
SK Hynix has reportedly reached a significant milestone in its pre-production trials by raising the yield rate of its sixth-generation high-bandwidth memory (HBM4) to 70%. This achievement strengthens the South Korean semiconductor company's position in the competitive HBM4 market, as industry observers eagerly await its next moves.
The DRAM market is expected to remain at the industry's low point in the first half of 2025. According to Nanya Technology president, Pei-ing Lee, Chinese competitors' DRAM production capacity has far surpassed that of Nanya. Although major Chinese manufacturers focus on LPDDR4, without their output ramp-up, the DRAM market would have already recovered.
Prices of mature process memory, long hit by oversupply due to fast capacity expansion at Chinese makers, are expected to rebound, thanks to the Chinese government's consumption stimulus programs.
