Samsung Electronics’ semiconductor factory to be put into operation in 2017 at an investment of 15.6 trillion won (US$14.4 billion) will be dedicated to the production of DRAM chips, and the output from the factory will be adjusted in accordance with market conditions.
The factory, where the scheduled investment is larger than in any other place of business of the semiconductor business division of Samsung Electronics, is twice as wide as its plant in Kiheung and can accommodate up to five semiconductor production lines. Samsung Electronics accounted for 41 percent of the global DRAM market in the fourth quarter of last year. If Samsung Electronics increases its supply by 10 percent, the global DRAM supply is increased by approximately 4 percent.
In the meantime, Samsung Electronics is planning to add two NAND flash lines to its facilities in Xi’an, China. “It is said that Samsung Electronics will not set up a general NAND flash plant any longer, but concentrate on V-NAND from now on,” said an industry insider. The maximum monthly production capacity of the plant in Xi’an will increase from 40,000 to 300,000 wafer sheets once the construction of the two lines is completed.
According to industry experts, the quantitative growth strategy of Samsung Electronics is to increase the market dominance and share in the memory market. The company recorded a share of 42 percent in the DRAM market in 2011, but the percentage fell to 41 percent in the following year, and to 36 percent in 2013.