2D NAND Exit Triggers 300% Price Surge

According to reports from Korean media, the global memory semiconductor industry is rapidly shifting production capacity toward high-bandwidth memory (HBM) and advanced 3D NAND flash technologies to meet surging artificial intelligence (AI) demand, accelerating the decline of legacy memory products such as 2D NAND. As major manufacturers phase out older process technologies and redirect investments toward AI-focused memory solutions, industries that rely heavily on long-term product stability — including automotive electronics, industrial automation, and medical equipment — are facing growing supply shortages and rising cost pressure.

Industry sources cited by South Korean media revealed that Samsung Electronics plans to gradually discontinue 2D NAND production at its Hwaseong Line 12 facility starting in March 2026. The production line, which currently supports monthly wafer output of approximately 80,000 to 100,000 wafers, will be converted to manufacture advanced 1c DRAM products for AI and data center applications.

The shutdown effectively marks the end of Samsung’s 2D NAND era, which began in 2002 with the commercialization of the world’s first 1Gb NAND flash product. After 24 years of production, Samsung’s final 2D NAND manufacturing base is being retired as the company prioritizes higher-margin AI memory technologies.

Samsung has also reportedly notified customers that it will discontinue Multi-Level Cell (MLC) NAND products, with final shipments expected in June 2026. Although MLC NAND offers lower storage density compared with newer TLC and QLC technologies, it remains highly valued for superior endurance, data retention, and long-term reliability. These characteristics have made MLC NAND a critical component in industrial robots, automotive systems, and medical devices requiring more than a decade of stable operation.

At the same time, Kioxia Holdings Corporation is accelerating its withdrawal from legacy memory markets. The company informed customers in March 2026 that it would gradually exit both 2D NAND and third-generation BiCS Flash production. Kioxia plans to accept final orders through September 2026, complete final shipments by December 2028, and fully exit the segment in 2029. The company is also discontinuing older TSOP-packaged NAND products, which is expected to tighten supply further in the low-capacity NAND market.

Meanwhile, Micron Technology has announced plans to terminate its consumer-focused “Crucial” business operations while maintaining limited support for existing customers. The company is reallocating legacy wafer capacity toward advanced AI memory products designed for hyperscale data centers and AI accelerators, further reducing industry-wide availability of general-purpose low-density NAND flash products.

The growing concern across the electronics industry is that leading memory manufacturers are exiting legacy product categories much faster than downstream markets can complete technology migration cycles. Market research firm TrendForce forecasts that global MLC NAND production capacity in 2026 will decline by 41.7% compared with 2025 levels.

Adding to the challenge, Samsung and Micron have reportedly declined to transfer core MLC manufacturing technologies when selling older equipment, creating major barriers for emerging manufacturers attempting to enter the market and offset shrinking supply.

As supply conditions deteriorate, prices for several SLC and MLC NAND products have surged sharply within a single month. Spot prices for MLC 64Gb NAND reportedly climbed from approximately $6 at the end of 2025 to between $20 and $28, representing a price increase of nearly 300%. The market has also begun experiencing panic buying and inventory stockpiling amid fears of prolonged shortages.

Industry analysts warn that the aggressive concentration of investment into AI-oriented high-value memory products is destabilizing the traditional memory chip ecosystem that supports core industrial and consumer electronics applications. The resulting supply-chain imbalance and inflationary pressure are expected to increase component costs and operational risks for automotive manufacturers, industrial equipment makers, and consumer electronics companies through 2027 and 2028.