The center of gravity in the global memory chip market is shifting from DRAM to NAND flash. As artificial intelligence (AI) infrastructure moves from the "training" to the "inference" stage, demand is surging for high-capacity SSDs (eSSDs), elevating NAND flash as a key strategic asset. With prices soaring and overseas competitors mounting a barrage to win back share, concerns are growing that Samsung Electronics and SK hynix, which have focused resources on high-bandwidth memory (HBM) while curbing NAND expansions, could lose supply leadership.
According to market research firm TrendForce on the 11th, NAND flash contract prices in the first quarter of this year are expected to jump as much as 55% to 60% from the previous quarter. That exceeds the initially expected 30% range, effectively mirroring in NAND the price uptrend seen in the recent DRAM "supercycle."
Nvidia's integrated storage management (ICMS) strategy adopted for its next-generation "Rubin" platform poured fuel on this trend. Simply put, ICMS is an "ultrafast warehouse that keeps frequently used data right next to the graphics processing unit (GPU)." By elevating NAND from a mere "storage warehouse" to a core tier that determines compute efficiency—the so-called "hot data layer (Hot Data Layer)"—it has become an essential element for boosting AI performance.
Some in the industry note that this "golden cycle" in the NAND market could paradoxically become a crisis for Korean chip corporations. While Samsung Electronics and SK hynix have concentrated resources on highly profitable HBM and restrained NAND capacity additions, global rivals are seizing the moment to reclaim market share.
Samsung Electronics and SK hynix are currently posting record-high margins in the 40% to 50% range in the NAND institutional sector and pursuing a profit-maximization strategy. However, some assess this as a risky "tightrope walk," effectively yielding supply leadership while competitors ramp up capital spending.
As an alternative, domestic corporations plan to go on the offensive by accelerating investments in transitioning to cutting-edge NAND processes starting in the second quarter. Samsung Electronics is expediting conversion to ninth-generation (V9) NAND centered on its Xi'an, China, and Pyeongtaek lines, while SK hynix aims to cement an overwhelming lead in the high-value eSSD market with its world-first mass production of 321-layer QLC (4-bit per cell) NAND.
Overseas competitors' pursuit is also intensifying. U.S.-based Micron is boldly reinvesting the hefty cash secured from selling out HBM into NAND. Micron recently broke ground on an advanced NAND plant in Singapore worth about 35 trillion won and formalized plans to double capacity by 2028. The move aims to leverage NAND's unique "lock-in" effect to tie global big tech customers into long-term contracts.
The Japan-based Kioxia and U.S.-based Western Digital (WD) alliance declared "selling out all NAND volumes in 2026" and is pulling forward mass production of 332-layer 10th-generation NAND to within the year, going all-out to secure technology leadership. China's YMTC, the most threatening variable, has already succeeded in mass-producing 270-layer-class NAND, narrowing the technology gap with Korea to under a year. YMTC's goal of reaching a 15% global market share by the end of this year is now seen as within reach.
A semiconductor industry official said, "If we cede leadership of the NAND ecosystem to the United States or China, the status of Korean semiconductors will inevitably shrink in the data hub market, the core of future AI infrastructure," and added, "How boldly revenue earned in DRAM is reinvested into advanced NAND process transitions will influence the future battle for market hegemony."