From Xi’an Factory: Samsung’s Pioneering 236-Layer NAND Strategy
Recently, memory manufacturers Samsung and SK Hynix have been granted an indefinite exemption by the United States, allowing them to equip their Chinese factories with manufacturing apparatus imbued with American technology without necessitating specific authorization. Presently, Samsung possesses a NAND flash memory plant in Xi’an and additional packaging facilities in Suzhou.
As per Business Korea, Samsung has resolved to elevate the capabilities of its Xi’an plant, initiating an expansive expansion, and priming to transition to a 200-layer NAND process. In anticipation of this shift, Samsung has procured an array of novel equipment, forecasting a delivery by the year’s end. Concurrently, Samsung envisages the sequential introduction of avant-garde production machinery next year, setting the stage for the manufacture of flash products utilizing the 8th-generation V-NAND technology with 236 layers.
Two pivotal factors underscore Samsung’s decision to refurbish the Xi’an factory. The first hinges on the NAND flash market’s inertia, showing no discernible signs of revival. Despite production cutbacks instigated in April, the landscape remained static. To safeguard its vanguard position in this domain, opting for a process enhancement ensures product competitiveness and price equilibrium. After all, in comparison to the 6th generation V-NAND technology, the 8th iteration curtails wafer costs by approximately 30%, optimizing the market’s supply-demand dynamics. The Xi’an facility, being a paramount production hub for 128-layer flash products employing the 6th generation V-NAND technology, naturally witnessed a significant plummet in operational rates.
The United States’ indefinite exemption serves as the secondary catalyst, spurring Samsung to expedite the modernization of its production tools. Samsung’s NAND flash factory in Xi’an stands as its solitary overseas semiconductor storage production nexus. The inaugural factory, backed by a hefty investment of 10.87 billion USD, commenced production in May 2014. By 2017, construction of the second plant was underway, with successive investments amassing 15 billion USD, culminating in its full-scale operation in March 2022. This facility, boasting the zenith of global NAND flash production capacity, contributes to over 40% of Samsung’s NAND flash output and more than 10% of the global NAND flash yield.
