Samsung, Hynix May Ease Back Flash Production to Drive Prices Up

Paul Lilly

Samsung and Hynix, two of the world's largest NAND flash memory producers, are reportedly planning to scale back production in order to deal with an oversupply situation that is forcing prices down. Toshiba is said to have already slowed down its operations at one of its Japan plants for the very same reason, and now that the first domino has fallen, others are expected to follow suit.

Citing "industry sources," DigiTimes reports Samsung and Hynix may cut production by as much as 10 percent, while Toshiba is aiming to slow things down by about 30 percent.

The problem chip suppliers face is that USB and memory card device sales haven't been as strong as anticipated, so now companies like Samsung are stuck holding bags of excess NAND flash memory chips. Also at play, according to DigiTimes , are late roll outs of new model smartphones, tablets, and Ultrabooks.

News of the production cuts come at a time with solid state drive (SSD) pricing is finally coming into mainstream territory. It's not that difficult these days to find high end SSDs selling for less than a buck per gigabyte amid a flurry of recent price cuts.

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