SK Hynix is struggling to close its NAND process gap as older production lines have slowed its transition to advanced technology. As of the second quarter, 176-layer products still accounted for about 50% of its output, while Samsung had completed a shift centered on 236-layer products. Omdia data put Micron’s 232-layer share at 53% and YMTC’s at 68%. During the NAND price upcycle, companies with larger advanced-process shares generally see better cost and profit improvement. SK Hynix’s NAND revenue share, including Solidigm, fell from 21.4% in the fourth quarter of last year to 16.4% in the first quarter of this year, while YMTC’s rose from 11.5% to 16.2%. SK Hynix has prioritized equipment investment in DRAM and HBM, reducing NAND investment for three consecutive years from $3.5 billion in 2023 to $2.9 billion in 2025. The company is now considering impairment charges on older NAND assets to optimize costs.