Samsung plans to focus on cutting 5 of NAND production capacity in Xi‘an factory

Source: Tiantian IC

    According to BusinessKorea, Samsung has started reducing production of NAND flash memory, mainly focusing on its storage semiconductor factory in Xi‘an.

    According to TrendForce, a market research firm, Samsung will adjust its NAND production capacity to 620000 12-inch wafers per month in the second quarter of this year. Compared to the fourth quarter of last year, this number reduced production by 5.34%.

    Especially in the second quarter, Samsung will significantly reduce production at its semiconductor factory in Xi‘an. For the first factory in Xi‘an, it is expected to reduce production to 110000 pieces per month, a 12% decrease from 125000 pieces per month in the fourth quarter of 2022. In addition, Xi‘an Second Factory is expected to release 135000 tablets, a decrease of about 7% from the previous 145000 tablets. The Xi‘an factory accounts for approximately 40% of the total production of Samsung Electronics NAND. We mainly produce 128 layer (V6) NAND flash memory.

    On April 7th, Samsung Electronics announced a reduction in production of memory semiconductors. At that time, the company explained, "We focus on advanced processes with high technical difficulty and the conversion to DDR5 and LPDDR5 DRAM. We are adjusting memory production to a meaningful level." Industry insiders analyzed that Samsung will mainly reduce production of DRAM this time.

    Samsung is planning to reduce production by focusing on the DRAM production line in Huacheng Park instead of the production line in Pingze Park. It is expected that the production line in Huacheng Plant will undergo a reduction of at least 3-6 months. Industry insiders say that although production capacity has increased, the total wafer investment in February and March this year has decreased by about 5-7% compared to the same period last year (through technology reduction).

    However, industry observers believe that Samsung has chosen to cut some of its NAND production capacity due to the current bleak memory market situation.