Apparently, it has come to notice on the basis of analysis that Samsung Electronics has initiated to cut production of NAND flash. This basically focusing its memory semiconductor plant in Xian, China.
As per Taiwanese market research firm Trendforce recently, Samsung Electronics will be going to manage its NAND production capacities. These predictions are for the second quarter of this year which is 620,000 units of 12-inch wafers per month. Talking in terms of percentages then it’s a 5.34 percent reduction in production with respect to the fourth quarter of last year.
To be specific, in the second quarter, the South Korean semiconductor behemoth tends to big production cuts in its Xian semiconductor plant. Notably, this unit is the chipmaker-only memory production base. While, in the case of China’s Xian Plant 1, it is predicted to cut production to 110,000 sheets per month. This is a 12 percent reduction from 125,000 sheets per month in the fourth quarter of 2022. Additionally, Xian plant 2 is forecasted to roll out 135,000 sheets. The same is about 7 percent from the earlier 145,000 sheets.
This Xian plant is responsible for about 40 percent of Samsung Electronics’ aggregate NAND production. It primarily produces 128-layer V6 NAND flash memory. In addition to this news, on April 7, Samsung Electronics revealed the production cut in memory semiconductors. Along with a disclosure of provisional earnings in the first quarter.
The company said, “We focused on an advanced process with high technical difficulties and a conversion to DDR5 and LPDDR5 DRAM,” adding, “We are adjusting memory production to a meaningful level.”
Whereas, as industry insiders analyzed that this production cut will be mainly in the making of DRAM, the same depicts the high profitability.
Although, industry watcher believes that Samsung Electronics has a very high share. This is approximately 30 percent of the global NAND flash market. Also, the unmatched cost competitiveness, opt to cut NAND flash production. Since the present memory market condition is gloomy.