As global majors exit the MLC market for advanced processes, a supply cliff has driven prices up. However, persistent demand from high-reliability sectors has transformed MLC into a high-margin niche. Macronix is strategically cutting NOR Flash output to boost MLC supply, filling the gap and solidifying its key supplier role.

Key Highlights

• Structural Supply Cliff: Global majors are exiting MLC for advanced processes, causing a sharp supply drop and price hikes with limited alternative capacity available.
• Niche Transformation: High-reliability sectors like automotive and industrial remain dependent on MLC due to validation barriers, transforming it into a high-margin niche product.
• Strategic Pivot: Macronix is leveraging its embedded market position by reducing NOR Flash output to expand MLC supply, filling the gap for long-term support.
• Synergistic Effect: This capacity shift tightens NOR Flash supply, supporting its pricing and stabilizing the supply-demand structure for both product lines.
• Risk Outlook: While the market has stabilized with fewer suppliers, potential long-term substitution by advanced technologies remains a pricing risk.

Table of Contents

1. NAND Flash Industry Experiences Restructuring Following Major International Suppliers’ Decision to Exit from MLC Segment
   • Changes in Annual Global MLC NAND Flash Production Capacity
2. Demand Has Not Shifted Despite Major Suppliers Exiting the Segment; MLC NAND Flash Has Transformed into Indispensable Niche Memory Category
   • Global Distribution of NAND Flash by Type
3. Replenishment to Supply Void of MLC NAND Flash
4. Ripple Effect of Reduced Capacity for NOR Flash on the Market

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