Samsung’s early MLC NAND exit sparks scramble for supply

May 28, 2025 — Samsung Electronics is set to exit the MLC NAND Flash segment ahead of schedule, informing clients it will stop taking orders by June and raising prices to discourage new demand. The move has triggered urgent stockpiling across the industry as customers scramble to secure alternative supply.

Originally slated for the second half of the year, Samsung’s exit has now been fast-tracked. Once existing inventory is depleted, production will cease entirely. The shift is causing considerable disruption in sectors dependent on MLC NAND, with module vendors like Phison, ADATA, and Transcend expected to benefit from redirected demand.

Despite growing adoption of higher-density TLC and QLC NAND in consumer and enterprise markets, MLC NAND continues to serve critical roles in industrial, IoT, automotive, and smart TV applications due to its balance of durability and performance. Samsung’s withdrawal, as the segment’s largest supplier, has amplified concerns of an impending supply crunch.

Industry insiders also report that LG Display, another major Korean electronics firm, is already facing difficulties sourcing MLC NAND from Samsung and has begun seeking alternative vendors, underscoring the scale of the disruption.

NAND Flash technologies are categorized by bits per cell: SLC (1 bit), MLC (2 bits), TLC (3 bits), and QLC (4 bits). While SLC offers unmatched reliability, its lower capacity and higher cost have shifted mainstream adoption toward TLC and QLC. Still, MLC remains essential in applications requiring high endurance and data integrity.