Samsung has announced at an event in Shaanxi province that it will double its NAND memory chip production capacity in China, right news amidst the severe shortage of NAND chips that has been experienced for nearly two years.
Samsung will double its NAND production capacity in China
Samsung has announced that it will invest nearly $7 trillion over three years, all with the intention of increasing its NAND memory manufacturing capacity to meet the enormous demand. With this new investment, Samsung will be able to produce 200,000 silicon wafers with a size of 300 mm2 by 2020.
We recommend you read our post about Samsung losing 60,000 NAND memory wafers due to a power outage.
Samsung’s decision to make this investment in China would be due to his desire to improve relations with the country, the most significant consumer of NAND memory worldwide, so the Korean has seen a great opportunity to make a lot of money.
Samsung will double its NAND production capacity in China
Increased investment in China is likely to mitigate the country’s protectionist policies, and by investing more in a second assembly line at its Xi’an manufacturing plant, Samsung is also looking to reduce the risk from over-densified manufacturing facilities in South Korea.
This measure should help to increase the availability of memory chips over the next few years, but could also cause smartphone manufacturers to assemble more significant quantities, creating a new shortage situation, and restarting the cycle once again.