Skymedi was founded in 2003, Samsung had been one of the major shareholders of the company. As a matter of fact, the company was considered the next big thing in the storage solution industry. However, as Samsung changed its policy in NAND controller chip, Skymedi began to fall, and almost hit bottom.

Samsung Electronics, through its investment arm Samsung Venture Investment Corporation (SVIC), had started disposing of its Skymedi shares in 2013.

SVIC invested in Skymedi since April 2008, and has been one of Skymedi’s major shareholders.

The fact is the price of NAND controller chip fluctuates according to the competitive market. Specifically, Phison Electronics Co. and Silicon Motion Technology Co. are big names in the industry.

Source said that Skymedi laid off 70 percent of workforce has rocked the industry, it’s another warning sign of the shrinking market.

Moreover, the company originally had 48 employees and after it implemented the workforce reduction plan in November, 30 workers have been laid off. It plans to lay off two more employees in February and March 2016, respectively.