Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for clue delivery! CTOnews.com August 16 news, according to the Korea Electronics Times reported that in order to overcome the depressed memory market conditions, Samsung Electronics plans to stop some of its NAND flash memory production equipment located in Pyeongtaek, South Korea.

Industry sources revealed that Samsung is currently considering stopping the production of some equipment in the NAND Flash production line of the P1 plant, which is mainly responsible for the production of the 6th generation V-NAND of the 128-layer stack, among which the equipment will be discontinued for at least one month.

Foreign media said that in view of the continued downturn in the market, the industry speculated that Samsung's NAND Flash production may be reduced by about 10%, and Samsung also officially announced the memory production reduction plan in the first quarter 2023 earnings report released in April. Samsung also said in its second-quarter earnings report that Samsung will focus on reducing NAND Flash production in the second half of 2023.

Semiconductor companies typically use "methods of keeping equipment running during production cuts without producing wafers," mainly because it takes extra time and economic costs to "re-establish processes and achieve yields" during restart if the equipment is completely shut down, but Samsung is currently considering stopping the equipment, so it can be seen that Samsung is indeed "determined" to cut costs significantly.

CTOnews.com reported earlier that Samsung's Device Solutions (DS) division, including semiconductors, lost 8.94 trillion won in the first half of 2023 alone (currently about 48.723 billion yuan), so "cost reduction" is clearly the focus of Samsung's current storage goal.

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