MLC in Shortage! Kioxia to Discontinue TSOP NAND

On March 19, Kioxia Electronics (China) announced the discontinuation of its Thin Small Outline Package (TSOP) products, primarily used in low-capacity MLC NAND Flash (storing 2 bits per cell). This move indicates that Kioxia's low-capacity MLC NAND may soon be phased out.

The company cited production capacity and substrate limitations as reasons for ceasing TSOP product manufacturing in the 8Gb–64Gb range. Kioxia has requested final purchase forecasts by May 30, 2026, to determine support plans. The last order date is set for September 15, 2026, with final shipments scheduled for March 15, 2027.

NAND Flash technology has evolved rapidly in recent years. Limited cleanroom space and low unit value per wafer for MLC NAND make it less economically viable compared with mainstream TLC and QLC architectures. As a result, manufacturers are increasingly focusing resources on TLC, QLC, and DRAM while gradually phasing out MLC products.

It remains unclear whether Kioxia China's TSOP discontinuation directly reflects its broader reduction of MLC output, but MLC NAND supply from the company is expected to drop to near zero between 2027 and 2028.

The exit of major global manufacturers from the MLC market has driven low-capacity eMMC prices sharply higher. Market research firm TrendForce projects that global MLC NAND Flash capacity will decline 41.7% in 2026, intensifying supply-demand imbalances. Limited short-term capacity expansion has led to accelerated procurement and pre-ordering trends since late Q1 2025, supporting price increases.

TrendForce notes that stable MLC demand mainly comes from industrial control, automotive electronics, medical devices, and networking applications, all requiring high reliability, long write endurance, and long-term availability. However, long-term growth in these sectors is limited, and the adoption of enhanced TLC solutions or a market downturn could indirectly pressure MLC pricing.