Samsung Expands Production of NAND Flash in Xi'an, China
In the current situation that Nand Flash flash memory is still in short supply and market prices remain high, South Korea's Samsung, the global leader in Nand Flash flash memory, recently announced that it will officially start the Nand Flash in Xi'an, China, which will be officially launched at the end of this month. The expansion plan for the memory factory was formally started on the 28th and is expected to be completed in 2019.
It is understood that the total amount of the project is as high as US$7 billion. The three-year expansion plan during the project period was announced by Samsung in August 2017. At present, the first production line of the Samsung Xi'an plant was built in 2014, with a monthly production capacity of 120,000 pieces. Today, the new production line is under construction. After the completion of the new production line, Samsung will be able to add another 200,000 wafers per month.
However, although the production line of the new Nand Flash flash memory is extremely important to Samsung, Samsung once faced giving up. In 2017, it was affected by the incident of the anti-missile missile system belonging to the South Korean Ministry. At that time, Samsung was asked by the new Minister of Industry, Trade and Resources, Paik Ungyu, to rethink investment in Xi’an, China, and prioritize investment in the country.
Samsung currently has the highest market share of NAND Flash flash memory in the world with a market share of 39%. In early March, it was reported that the company will invest 30 trillion KRW in the construction of a new plant in Pyeongtaek, South Korea. It is planned to be completed by the end of 2019, and it is expected that the production capacity of DRAM and NAND Flash will each be half of that.
In fact, Samsung's revenue from NAND Flash flash memory reached US$6.17 billion in the fourth quarter of 2017, up 9.8% from the previous quarter. The main reason for the continued high price of memory questions is the demand for smart phones and cloud server market. Shipments and average prices have been increased. In this regard, in addition to Samsung, the international manufacturers of NAND Flash flash memory, including Toshiba and Micron, are also expanding their production capacity. Coupled with the fact that China's Yangtze River Storage is expected to open a large capacity in 2018, it will inevitably affect the market price, and the market is also expected to impact the profitability of the downstream supply chain.
It is understood that the total amount of the project is as high as US$7 billion. The three-year expansion plan during the project period was announced by Samsung in August 2017. At present, the first production line of the Samsung Xi'an plant was built in 2014, with a monthly production capacity of 120,000 pieces. Today, the new production line is under construction. After the completion of the new production line, Samsung will be able to add another 200,000 wafers per month.
However, although the production line of the new Nand Flash flash memory is extremely important to Samsung, Samsung once faced giving up. In 2017, it was affected by the incident of the anti-missile missile system belonging to the South Korean Ministry. At that time, Samsung was asked by the new Minister of Industry, Trade and Resources, Paik Ungyu, to rethink investment in Xi’an, China, and prioritize investment in the country.
Samsung currently has the highest market share of NAND Flash flash memory in the world with a market share of 39%. In early March, it was reported that the company will invest 30 trillion KRW in the construction of a new plant in Pyeongtaek, South Korea. It is planned to be completed by the end of 2019, and it is expected that the production capacity of DRAM and NAND Flash will each be half of that.
In fact, Samsung's revenue from NAND Flash flash memory reached US$6.17 billion in the fourth quarter of 2017, up 9.8% from the previous quarter. The main reason for the continued high price of memory questions is the demand for smart phones and cloud server market. Shipments and average prices have been increased. In this regard, in addition to Samsung, the international manufacturers of NAND Flash flash memory, including Toshiba and Micron, are also expanding their production capacity. Coupled with the fact that China's Yangtze River Storage is expected to open a large capacity in 2018, it will inevitably affect the market price, and the market is also expected to impact the profitability of the downstream supply chain.