Thursday, March 15th 2018

Power Outage at Samsung NAND Flash Plant Cuts March Global Output by 3.5%

A power-outage on 9th March, at one of Samsung's NAND flash manufacturing plants located in Pyeongtaek, Korea, will have a notable impact on global NAND flash production. It reduced the global NAND flash output for the month of March 2018 by 3.5 percent, a number that isn't insignificant, and translates into non-volatile memory for millions of devices. It also trims Samsung's output by 11 percent for the month. SIlicon fabrication is a highly sensitive process, and the power-outage is said to have damaged up to 60,000 wafers of NAND flash chips.

The impact of this event on global prices of NAND flash memory, and devices based on it, remains to be seen. Any inflation could be nipped in the bud by Samsung and other NAND flash makers significantly increasing production through this quarter. Samsung will begin expansion of its NAND flash plant in Xi'an, China, which currently outputs 120,000 wafers per month, and is expected to put out 320,000 wafers a month after the expansion.
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