Kioxia’s Bold Move: Are You Ready for the END of Affordable MLC NAND Products? What This Means for You!

In a significant shift in the semiconductor industry, Kioxia has announced the cessation of manufacturing its TSOP (Thin Small Outline Package) products in the 8Gb–64Gb range due to production capacity and substrate limitations. The company has requested final purchase forecasts from its clients by May 30, 2026, to develop support plans, with the last order date set for September 15, 2026, and final shipments expected to occur by March 15, 2027.

The landscape of NAND Flash technology has evolved rapidly, with manufacturers increasingly gravitating towards TLC (Triple-Level Cell) and QLC (Quad-Level Cell) architectures over MLC (Multi-Level Cell) due to the high costs and limited cleanroom space associated with the latter. The economic viability of MLC NAND has been diminishing significantly, as the value per wafer for MLC is considerably lower compared to mainstream alternatives. This has prompted a strategic shift among manufacturers, who are now dedicating resources primarily towards TLC, QLC, and DRAM technologies while gradually phasing out MLC products.

While it is not definitively clear if the discontinuation of Kioxia China’s TSOP products directly correlates with a broader reduction in MLC output, experts predict that MLC NAND supply from Kioxia is likely to plummet to near zero between 2027 and 2028. This anticipated decline signals a considerable shift in the market dynamics of NAND Flash memory, which has implications for various sectors dependent on these technologies.

The exit of major global manufacturers from the MLC market has already begun to influence pricing structures. Recent reports from the market research firm TrendForce indicate that global MLC NAND Flash capacity is projected to decline by 41.7% in 2026, exacerbating existing supply-demand imbalances. The limited capacity expansion prospects in the short term have led to heightened procurement and pre-ordering trends since late Q1 2025, which have supported increasing prices in the market.

This trend raises important questions about the future of the semiconductor industry and the potential impacts on consumer electronics, data storage solutions, and broader technology applications. As the market pivots towards TLC and QLC technologies, industries relying on MLC NAND may face challenges in sourcing adequate supply, pushing them to adapt quickly to changing circumstances.