Samsung will reduce memory prices and expand production capacity

Earlier reports said Samsung, one of the world’s largest chipmakers, is planning to expand its chip production capacity next year. This year, due to factors such as the global economic downturn, industry giants such as TSMC, Intel, Micron, and SK Hynix have all delayed their capacity expansion plans, but Samsung does not seem to have stopped, forming a stark contrast.

According to Business Korea, Samsung is planning to expand DRAM production capacity and lower prices in its own way through the upcoming 2023 economic recession. In contrast to Samsung, rivals Micron and SK Hynix are planning to cut capital expenditures and lay off workers.

Samsung GDDR7

It is understood that Samsung will add a new production line for the new 12nm DRAM chip. In addition to expanding the production of DRAM and wafer foundry at the P3 factory in Pyeongtaek, South Korea, the production facilities of NAND flash memory at the P1 factory will also be upgraded and transformed into the production line of the 8th generation V-NAND. The related construction work is expected to be completed in the second half of next year.

In the third quarter of this year, Samsung’s share in the memory market dropped to 40.6%. Samsung hopes to grab market share from competitors by cutting prices and increasing supply, thereby consolidating its leadership. Samsung’s capital expenditure this year is $42.5 billion. In addition to continuously expanding production capacity, it is also betting on extreme ultraviolet (EUV) lithography technology and plans to add 10 more EUV equipment to the existing 40.