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[Alpha Biz=(Chicago) Reporter Paul Lee] Samsung Electronics is planning to convert its NAND flash plant in Xi'an, China. Upgrade the current 128-layer (V6) NAND flash line to 236-layer (V8).
According to the industry on the 3rd, Samsung Electronics decided to switch its Xi'an plant in China from 128 dan to 236 dan process. We decided to start replacing the equipment from the beginning of next year and notified the related industry. The goal is to change the process by 2025.
Samsung Electronics has also started converting NAND processes in Pyeongtaek Plant 1 (P1). P1 was also producing 128-layer NAND, but decided to change it to 236-layer. The decision was made to reduce production of old products and supply 236-layer NAND, which will increase demand in the future, as 128-layer NAND is accumulated as inventory due to the economic downturn.
The 236-layer NAND is currently Samsung Electronics' most advanced NAND. Samsung Electronics plans to mass-produce next-generation NAND (V9) around 300 layers early next year, but 236 layers are the latest commercialized products.
The shift in China's Xi'an process drew attention due to regulations on U.S. semiconductor equipment. The Xi'an plant is a key plant responsible for about 40% of Samsung's NAND production. However, due to the deterioration of the market, 128-layer NAND was accumulated as inventory as it was made. For Samsung Electronics, it was urgent to change the draft process, but U.S. equipment regulations were a stumbling block. It is in a dilemma because it prohibits the export of equipment that can make NAND more than 200 layers to China.
Then the road opened in October. The U.S. government has finally decided to supply U.S. semiconductor equipment to Samsung Electronics and SK Hynix's Chinese plants without any separate approval procedures or deadline. As it became possible to bring in equipment without restrictions as it was designated as a "verified end user (VEU)," Samsung decided to switch to the Xi'an fleet process.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
