[News] Samsung’s Xi’an Plant Set to Upgrade to 286-Layer NAND against Rising Compeition from China

According to a report from ijiwei, citing Business Korea, Samsung Electronics is upgrading its Xi’an plant in China by transitioning to a 286-layer (V9) NAND flash process.

This effort aims to counteract the ongoing market decline and strengthen Samsung’s competitive edge against rising Chinese semiconductor firms like YMTC, which, as reported by Business Korea, has recently begun mass-producing 294-layer NAND.

As the report highlights, since 2023, Samsung has been working to transition its 128-layer (V6) NAND process at the Xi’an plant to a 236-layer (V8) production line.

The company has now decided to advance further by establishing a V9 production line, upgrading to a 286-layer process. Samsung plans to introduce the required equipment within the first half of 2025 and aims to set up a production line in the second half of the year, with a monthly capacity of approximately 2,000 to 5,000 wafers, as the report points out.

The report notes that the Xi’an plant is Samsung’s only overseas memory production base and is key to the company’s global supply chain, accounting for approximately 40% of its total NAND production.

Notably, as the report mentions, the Biden administration in 2023 granted Samsung “Validated End-User (VEU)” status, a decision of critical importance. This status allows Samsung to manufacture NAND with over 200 layers in China.

As the report further states, Samsung has also been working on establishing a 400-layer (V10) NAND mass production line at its Pyeongtaek Plant 1 (P1) since the second half of 2024, with initial mass production potentially beginning in the second half of 2025.

Samsung and SK hynix Reportedly Cutting Q1 2025 NAND Output

Meanwhile, as noted by a report from etnews, through tech migration, Samsung and SK hynix have reportedly started reducing their NAND flash production. Industry sources mentioned in the report indicate that both companies’ NAND production in the first quarter of 2025 will drop by over 10% compared to the second half of 2024.

According to the analysis by TrendForce, NAND Flash prices have been in decline since 3Q24, and suppliers remain pessimistic about demand in the first half of 2025.

Read more

• [News] Samsung and SK hynix Reportedly to Cut NAND Production by 10% in Q1 Amid Tech Migration
• [News] Samsung, SK hynix and Micron Reportedly Cut NAND Production amid Slowing Demand
• NAND Flash Manufacturers to Resume Production Cuts in 2025 to Ease Supply-Demand Imbalance and Stabilize Prices, Says TrendForce

(Photo credit: Samsung)