Samsung Launches World’s Largest Semiconductor Factory

Recently, Samsung Electronics announced it would begin manufacturing within the world’s largest semiconductor factory as soon as July. Located in Pyeongtaek, Korea and equipped with state-of-the-art technology, the fab will begin mass producing fourth-generation 3D NAND chips in 64-layer — something competitors have not managed to achieve on this scale as of yet.

In the beginning stages, industry leaders project a relatively small output of 70,000 to 80,000 units by the end of 2017. As the fab picks up the pace, the Pyeongtaek plant will produce up to 20% of all semiconductors manufactured by Samsung Electronics.

The ever growing NAND market continues to dominate the electronics industry. Samsung currently has an unrivaled production number compared to other companies. By the time the new plant is up and running, Samsung will control up to 40 percent of all NAND production in the world.

Samsung’s Role in the Global Semiconductor Market

As a technological giant, to say Samsung leads the industry is an understatement. This expansion completes a triumvirate of fabs in Korea and one in China, all of which are increasing their capacity in accordance with the shift to 3D NAND production. Here’s the takeaway:

  • Samsung continues to drive down the price of second and third-generation NAND products by flooding the market,
  • By meeting increasing demand for fourth generation products, Samsung retains an edge and other manufacturers will have to close the production gap in order to compete.
  • Research and development of fifth generation chips is already underway.

As an industry giant with the capital to invest in production, expansion and R&D all at once, Samsung is in good standing. While a Toshiba acquisition could benefit competitors, it won’t be enough to overtake Samsung’s lead.

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