Industry sources report Hynix Semiconductor will cut production of NAND flash memory due to oversupply and falling prices:
The output reduction from Hynix will account for about 5% of worldwide capacity, and the impact will be seen in about two months' time during the second quarter, the sources said.
Currently Hynix makes NAND flash at its 8-inch fabs chiefly on a 57nm process. Hynix is also seeking to sell its two 8-inch NAND flash-making fabs (M8 and M9), as production of NAND flash at 8-inch facilities is not cost efficient, the sources said. And selling the fabs is also in line with the company's decision of reduced production, the sources added.
While processing NAND flash on a next-generation 48nm process may be even more cost efficient, Hynix's 48nm process has to mature, the sources commented. Until then, Hynix has to find an optimum product mix to maximize its profitability, and therefore it has decided to cut the production of 57nm-made NAND flash, the sources added.