Core Viewpoint - The NAND flash memory industry, once a star of the storage sector, is experiencing a significant downturn in 2024, marked by price volatility and reduced profitability, leading major manufacturers to slow down expansion and investment, indicating a shift from aggressive growth to cautious investment [3][19]. Group 1: Industry Overview - NAND flash memory has played a crucial role in the growth of the semiconductor industry, driven by the rise of smartphones, PC upgrades, and cloud computing [2]. - The industry is now dominated by a few major players, including Samsung, SK Hynix, Micron, and Kioxia, who are adjusting their strategies in response to changing market dynamics [3]. Group 2: Samsung's Strategy - Samsung, a long-time leader in the NAND market, has faced challenges in the mass production of its V10 NAND flash, originally expected to start by the end of this year, now delayed to mid-next year due to supply chain evaluations and unclear market demand [5][6]. - The company is also experiencing a slowdown in its conversion investments for advanced NAND production lines, with plans for the 9th generation NAND being postponed due to low demand [7][9]. Group 3: SK Hynix's Position - SK Hynix has adopted a cautious approach to its NAND business, prioritizing profitability over expansion, and has delayed investments in its second factory in Dalian due to geopolitical factors and weak market performance [8][9]. - The company is focusing its resources on HBM and DRAM, indicating a strategic shift away from NAND [9]. Group 4: Micron's Actions - Micron has announced the cessation of future mobile NAND product development due to poor market performance, redirecting its focus towards enterprise SSDs and other NAND solutions that offer more stable demand and higher profit margins [11][12]. - The company is increasing its investment in HBM and DRAM to capitalize on the growing AI market [12]. Group 5: Kioxia's Challenges - Kioxia, as the third-largest NAND supplier, faces difficulties due to its reliance on partnerships with Western Digital and the lack of scale to compete effectively with Korean giants [13]. - The company struggles with financial performance amid price volatility in the NAND market, leading to a precarious position [13]. Group 6: China's Longsys Strategy - Longsys has chosen to increase investments during this downturn, leveraging domestic market demand to maintain growth and gain a strategic advantage [13]. - Despite its efforts, the global NAND market remains dominated by established players, making it challenging for Longsys to disrupt the existing structure [13]. Group 7: Equipment Manufacturers' Impact - The slowdown in NAND investment has adversely affected semiconductor equipment manufacturers, leading to a decline in orders and cash flow [15][16]. - Equipment companies are shifting focus towards DRAM and logic chip production to mitigate the impact of reduced NAND demand [17]. Group 8: Future Outlook for NAND - The NAND market is expected to remain subdued due to weak demand from smartphones and PCs, while AI-driven HBM and DDR5 demand is rising, pushing NAND to the periphery [19]. - However, there may be future growth opportunities for NAND in applications like AI training and large-capacity SSDs, provided that new technologies and market demands emerge [19][20].