Industry: Chinese smartphones help NAND prices rebound, Samsung's production capacity rebounds
Mar 15,2024
As NAND flash memory prices have gradually rebounded in recent months, Samsung Electronics has begun to increase production. According to industry reports in South Korea, the capacity utilization rate of Samsung's Xi'an factory has been restored to around 70%, which will help alleviate the burden on upstream raw material and component suppliers.
Industry insiders have stated that the main factor contributing to the growth of NAND's production capacity is the preference of Chinese consumers for domestic brands, which has driven an increase in smartphone sales. At present, the Xi'an factory is Samsung's only overseas storage chip production base, with a 12 inch crystal month production capacity of 200000 pieces, accounting for 40% of Samsung's NAND total production. It is reported that the factory is transitioning to the 236 layer NAND process.
It is understood that in response to the deteriorating market conditions, Samsung will reduce the capacity utilization rate of its Xi'an factory to 20% -30% in the second half of 2023. As inventory adjustments end and production capacity gradually recovers, it is expected that Samsung's recent increase in production capacity will drive revenue growth, leading to a turning point in the long-term downturn.
Industry insiders in the semiconductor industry have stated that recent customer requests to increase inventory levels have led to an increase in NAND shipments compared to 2023. In addition, semiconductor related material suppliers have also pointed out that companies such as Dongjin Semiconductor and SoulBrain have seen an increase in NAND raw material shipments recently.
According to South Korean news, Samsung is also beginning to pay attention to mobile solid-state drive products and is establishing an independent design department for such products, alongside the computer and mobile phone businesses. Research firm Omdia predicts that the global consumer grade solid-state drive (SSD) market will grow from approximately $8.3 billion in 2023 to $11.3 billion in 2024, and reach $14.3 billion by 2025.
Industry insiders have stated that the main factor contributing to the growth of NAND's production capacity is the preference of Chinese consumers for domestic brands, which has driven an increase in smartphone sales. At present, the Xi'an factory is Samsung's only overseas storage chip production base, with a 12 inch crystal month production capacity of 200000 pieces, accounting for 40% of Samsung's NAND total production. It is reported that the factory is transitioning to the 236 layer NAND process.
It is understood that in response to the deteriorating market conditions, Samsung will reduce the capacity utilization rate of its Xi'an factory to 20% -30% in the second half of 2023. As inventory adjustments end and production capacity gradually recovers, it is expected that Samsung's recent increase in production capacity will drive revenue growth, leading to a turning point in the long-term downturn.
Industry insiders in the semiconductor industry have stated that recent customer requests to increase inventory levels have led to an increase in NAND shipments compared to 2023. In addition, semiconductor related material suppliers have also pointed out that companies such as Dongjin Semiconductor and SoulBrain have seen an increase in NAND raw material shipments recently.
According to South Korean news, Samsung is also beginning to pay attention to mobile solid-state drive products and is establishing an independent design department for such products, alongside the computer and mobile phone businesses. Research firm Omdia predicts that the global consumer grade solid-state drive (SSD) market will grow from approximately $8.3 billion in 2023 to $11.3 billion in 2024, and reach $14.3 billion by 2025.