Samsung’s
three-legged cluster in Korea connecting Giheung, Hwaseong and
Pyeongtaek will be completed. As a mother fab that produces advanced
NAND chips, Samsung Electronics’ Pyeongtaek plant will become the
production base of the fourth-generation 3D NAND chips in 64-layer with
the world’s best technology. The world’s largest semiconductor factory
will start operating in July. With other competitors, such as Micron and
SK Hynix, having not succeeded in mass producing the fourth-generation
NAND chips yet, Samsung is planning to dominate the semiconductor market
through the so-called “super-gap” strategy.
Samsung Electronics currently operates the system semiconductor plant
in Giheung and the DRAM chip plant in Hwaseong. With the NAND flash
chip plant in Pyeongtaek, the company has established a dream of
semiconductor triangle and prepared the ground for the long-term seizure
of power in the global semiconductor market. In addition, Samsung will
expand its system semiconductor plant and DRAM plant in Giheung and
Hwaseong as well as promote Pyeongtaek plant and the Xian plant in China
as the production base of NAND flash chips.
Once the Pyeongtaek plant starts operation in earnest, Samsung’s NAND
flash production will dramatically increase. According to market
intelligence company IHS Markit, Samsung Electronics has the NAND
production capacity of 450,000 wafers a month and more than half of them
are 3D NAND memory chips. 3D NAND flash is a type of flash memory in
which the memory cells are stacked vertically in multiple layers to
increase capacity. As the Pyeongtaek plant is said to mass produce only
3D NAND chips, Samsung Electronics is highly likely to expand its share
in the 3D NAND market which sees demand surge.
However, the total 3D NAND production of the Pyeongtaek plant in the
second half of this year after starting operation will be 70,000 to
80,000 units as of wafers. An official from the semiconductor industry
said, “In the initial stage of operation, production is limited. After
one to two years, the rate of operation will hit its stride.”
Accordingly, the Pyeongtaek plant is expected to account for 10 to 20
percent of Samsung Electronics’ semiconductor business for a while.
Samsung Electronics seeks to strengthen its unrivaled position in the
rapidly growing NAND market by operating the Pyeongtaek plant as soon
as possible. NAND is a memory chip that retains data even if power is
turned off and its demand in mobile devices, including high-performance
smartphones, is skyrocketing.
IHS
Markit said that Samsung Electronics’ share in the NAND flash market
increased from 32 percent in 2015 to 36.1 percent in 2016. An official
from the semiconductor industry said, “When Samsung mass produces the
fourth-generation NAND memory chips and lower the price of the second
and third-generation NAND products, other producers will be hit hard.
Samsung will be able to expand its market share to 40 percent even if
other semiconductor companies join forces through the acquisition of
Toshiba.”
In particular, Samsung has set up the fourth-generation NAND mass
production system and started developing the fifth-generation NAND at
the same time. During the annual shareholder meeting held at the end of
last month, Samsung Electronics Vice Chairman Kwon Oh-hyun said, “We are
planning to continuously widen the technical gap by developing an
advanced process, including a fifth-generation V-NAND, in time.”
An expert in the semiconductor market said “Concerns over oversupply
and expectations for new demands caused by the fourth industrial
revolution co-exist in the market. Samsung’s market dominating power in
the future will be determined by how much Samsung can differentiate its
products and strategy through the Pyeongtaek plant.”
http://www.businesskorea.co.kr/english/news/ict/17805-three-legged-chip-cluster-completed-samsung-electronics-start-operating-world%E2%80%99s
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