Samsung's Xi'an Plant Plans 236-Layer NAND Upgrade

On November 2, industry experts disclosed Samsung Electronics' strategic initiative to renovate its NAND flash memory facility situated in Xi'an, China. This extensive endeavor involves the upgrading of the existing 128-layer (V6) NAND flash production line to a more advanced 236-layer (V8) configuration. The commencement of equipment replacement is slated for early next year, with a clear objective of accomplishing the transition by 2025.

Driven by the economic challenges, there has been a buildup of 128-layer NAND flash memory inventory. In response, Samsung has made a pivotal decision to curtail the production of older products and shift its focus towards catering to the surging demand for the cutting-edge 236-layer NAND technology. This strategic shift reflects Samsung's commitment to embracing advanced manufacturing processes.

Notably, this upgrade extends beyond the Xi'an facility to include the NAND technology at the Pyeongtaek Fab 1 (P1), which is also in the process of transitioning from 128 layers to 236 layers.

The significance of this Xi'an facility upgrade stems from previous U.S. semiconductor equipment regulations that had imposed restrictions on the export of equipment capable of manufacturing NAND flash memory with over 200 layers to China.

It's worth mentioning that the Xi'an factory holds pivotal importance within Samsung's operations, contributing to roughly 40% of the company's total NAND production. However, the challenging market conditions and an increasing inventory of 128-layer NAND products have necessitated immediate process enhancements.

In an interesting turn of events, in October of this year, the United States granted Samsung the status of a "Validated End User (VEU)," facilitating the import of equipment without the need for individual applications. In light of this, Samsung has decided to optimize its front-end factory processes.

The number of NAND flash memory layers signifies the number of stacked memory cells, and higher layer counts result in greater storage capacity. As of the current landscape, 236-layer NAND represents the pinnacle of Samsung Electronics' NAND technology. Furthermore, Samsung is poised to initiate mass production of the next-generation NAND technology (V9), boasting approximately 300 layers, at the onset of the upcoming year.