MLC Supply Cliff: Majors Exit & MXIC's Gain

As global majors exit the MLC market for advanced processes, a supply cliff has driven prices up. However, persistent demand from high-reliability sectors has transformed MLC into a high-margin niche. Macronix is strategically cutting NOR Flash output to boost MLC supply, filling the gap and solidifying its key supplier role.

Key Highlights

• Structural Supply Cliff: Global majors are exiting MLC for advanced processes, causing a sharp supply drop and price hikes with limited alternative capacity available.
• Niche Transformation: High-reliability sectors like automotive and industrial remain dependent on MLC due to validation barriers, transforming it into a high-margin niche product.
• Strategic Pivot: Macronix is leveraging its embedded market position by reducing NOR Flash output to expand MLC supply, filling the gap for long-term support.
• Synergistic Effect: This capacity shift tightens NOR Flash supply, supporting its pricing and stabilizing the supply-demand structure for both product lines.
• Risk Outlook: While the market has stabilized with fewer suppliers, potential long-term substitution by advanced technologies remains a pricing risk.