Samsung invests $ 8 billion in Xi'an chip fab in response to increasing demand for NAND flash
According to businesskorea, Samsung Electronics will increase its $ 8 billion investment in its Xi'an chip factory in China to boost NAND flash memory chip production. Samsung Electronics said that as China launches commercial 5G services and Intel releases Ice Lake CPUs for servers, market demand may increase next year.
This is the second phase of Samsung Xi'an's flash memory chip project. The total investment for the second phase of the project is US $ 15 billion, with approximately US $ 7 billion in the first phase and US $ 8 billion in the second phase.
As early as August 2017, Samsung announced that it will invest $ 7 billion in the Xi'an plant that produces NAND flash memory chips over the next three years. This investment plan will be completed in March next year. This investment and forthcoming investment are expected to bring the plant's 3D NAND flash memory output to at least 130,000 pieces per month.
Market research company TrendForce said on December 12 that Samsung Electronics ’share of the global NAND flash memory market was 33.5% in the third quarter of this year, and runner-up Kioxia ’s share was 18.7%. Compared with the previous quarter, Samsung's market share dropped by 1.4 percentage points, and Kioxia's market share increased by 0.6 percentage points. In addition, Intel beat Hynix, and its market share rose from 8.7% to 10.9%, ranking fifth.
Over time, global demand for NAND flash memory may increase because 5G will lead to more large-capacity data stored in NAND flash memory. TV makers and content providers are expected to launch various 8K services at CES in Las Vegas next year, which is another demand factor. In addition, if Intel launches "Ice Lake" in the second half of next year, the demand for memory chips from cloud computing companies such as Microsoft, Google and Amazon may exceed market supply.
This is the second phase of Samsung Xi'an's flash memory chip project. The total investment for the second phase of the project is US $ 15 billion, with approximately US $ 7 billion in the first phase and US $ 8 billion in the second phase.
As early as August 2017, Samsung announced that it will invest $ 7 billion in the Xi'an plant that produces NAND flash memory chips over the next three years. This investment plan will be completed in March next year. This investment and forthcoming investment are expected to bring the plant's 3D NAND flash memory output to at least 130,000 pieces per month.
Market research company TrendForce said on December 12 that Samsung Electronics ’share of the global NAND flash memory market was 33.5% in the third quarter of this year, and runner-up Kioxia ’s share was 18.7%. Compared with the previous quarter, Samsung's market share dropped by 1.4 percentage points, and Kioxia's market share increased by 0.6 percentage points. In addition, Intel beat Hynix, and its market share rose from 8.7% to 10.9%, ranking fifth.
Over time, global demand for NAND flash memory may increase because 5G will lead to more large-capacity data stored in NAND flash memory. TV makers and content providers are expected to launch various 8K services at CES in Las Vegas next year, which is another demand factor. In addition, if Intel launches "Ice Lake" in the second half of next year, the demand for memory chips from cloud computing companies such as Microsoft, Google and Amazon may exceed market supply.