Recently, the semiconductor industry received a significant announcement: Samsung Electronics plans to officially exit the MLC NAND (Multi-Level Cell NAND) business in June 2025 and cease taking orders for related chips. This decision has attracted widespread attention within the industry. After all, Samsung, as a global giant in the semiconductor sector, has long held a pivotal position in the MLC NAND field. However, with the rapid development of semiconductor technology, new storage technologies such as TLC (Triple-Level Cell NAND) and QLC (Quad-Level Cell NAND) have gradually emerged. These emerging technologies offer greater advantages in terms of storage density and cost-effectiveness, prompting Samsung to make strategic adjustments.

MLC NAND was once a key technology in the storage domain. By storing multiple bits of information in each memory cell, it achieved a balance between cost and storage density. It was widely used in storage products such as embedded multimedia cards (eMMC), particularly in embedded devices and consumer electronics. However, as technology has advanced, the limitations of MLC NAND have become increasingly apparent. Its slow write speeds, high power consumption, and insufficient durability make it unable to meet the high storage performance requirements of emerging application areas such as artificial intelligence, the Internet of Things, and big data.

In contrast, TLC and QLC NAND have further improved storage density and cost-effectiveness by increasing the number of bits in each memory cell. Although they still need improvement in terms of durability and write speed, these emerging technologies have gradually matured with the continuous optimization of error correction algorithms and process technologies and have gained widespread market recognition. Samsung realized that focusing resources on more promising technological areas such as TLC and QLC NAND will help it maintain a leading position in future market competition.

Customer Reactions and Supply Chain Adjustments

Samsung's decision to exit the MLC NAND business has had a profound impact on customers who rely on its products. Reports indicate that Samsung not only notified customers of its intention to stop taking orders but also increased the prices of its MLC NAND products. This has prompted several customers, including LG Display, to urgently seek alternative suppliers. LG Display is one of the major customers of MLC NAND, using Samsung's MLC NAND extensively in its 4GB eMMC (embedded multimedia card) for large OLED panels. In addition to Samsung, LG Display's eMMC suppliers also include ESMT and Kioxia, with ESMT's eMMC products also using Samsung's MLC NAND packaging. With Samsung's exit, LG Display will be left with only Kioxia as its supplier, thus accelerating its efforts to diversify its supply chain.

Industry Restructuring and Accelerated Technological Transition

Samsung's exit from the MLC NAND business is an inevitable result of technological iteration in storage. Although MLC NAND has certain advantages in cost and storage density, its limitations in write speed, power consumption, and durability have gradually become apparent. In comparison, TLC and QLC NAND have significantly narrowed the gap with MLC through process improvements and error correction algorithm optimizations. In particular, QLC NAND, with its higher storage density and more competitive pricing, is rapidly eroding the remaining market share of MLC.

According to market research firms, the share of MLC NAND in global NAND shipments has dropped to 1.3% - 1.5% in 2024, and is expected to further shrink to around 0.6% with the cessation of production. Meanwhile, the market share of QLC NAND is steadily increasing, projected to reach 20% in 2024.

From an industry-wide perspective, Samsung's decision will have a far-reaching impact on the global semiconductor storage market. On one hand, it will change the competitive landscape of the MLC NAND industry, prompting other manufacturers to readjust their strategic layouts. On the other hand, it will also drive the entire semiconductor storage market to transition to more advanced technologies. In the future, TLC and QLC NAND will be widely used in more fields, and emerging technologies such as 3D NAND, PCM (Phase-Change Memory), and MRAM (Magnetoresistive Random Access Memory) will also gradually emerge, bringing more possibilities to the storage market.

Industry Impact and Future Outlook

Samsung's exit from the MLC NAND business has not only affected its customers and supply chain but also had a profound impact on the entire storage industry. In fields such as industrial control, medical, and automotive, where data reliability is highly demanded, MLC NAND still has certain market demand. However, with Samsung's exit, the supply chains in these areas will have to plan product upgrades or seek alternative solutions in advance.

In the long run, Samsung's focus on the TLC and QLC NAND product lines will help it maintain competitiveness in the high-capacity storage market. At the same time, this decision also reflects the harsh reality of the semiconductor industry—only through continuous innovation can one maintain a leading position in fierce market competition.

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