The global NAND Flash industry will see an annual increase of just 6% in its total wafer capacity in 2017, according to analysis by DRAMeXchange, a division of TrendForce. As the pace of the industry-wide transition to 3D-NAND architecture accelerates, supply of 2D-NAND memory will drop sharply, leading to shortages next year. Furthermore, many suppliers are still working on the mass production of 3D-NAND memory. Until the industry in general is able to apply 64-layer 3D-NAND solutions to OEM storage products, the market supply for 3D-NAND memory will remain tight. In the meantime, NAND Flash prices will continue to go up and boost suppliers’ revenues.
China’s National Integrated Circuitry Investment Fund (here referred to as “National IC Fund”) has committed to invest nearly RMB 70 billion into the domestic semiconductor sector since its creation in 2015. Approximately 60% of the committed investment amount has been allocated to building semiconductor wafer fabs, according to TrendForce’s analysis. After finishing providing capital for projects related to semiconductor manufacturing, the National IC Fund is expected to concentrate its investments on the development of the domestic fabless IC design industry.