Samsung and SK Hynix slow down capacity expansion plans

As a result of the downward pressure on the pricing of both DRAM and NAND flash memory, both Samsung and SK Hynix are putting production capacity expansion plans on hold. The pricing of both memory types is expected to decline through the first half of 2019.

DigiTimes writes new 3D NAND production capacity from Samsung is unlikely to go online until the first half of 2019. Furthermore, the South Korean electronics giant put the 1ynm DRAM chip production expansion at its Hwaseong and Pyeongtaek plants on hold. Similarly, SK Hynix slowed down its 3D NAND chip production expansion efforts:

Industry leader Samsung, which used to supply 3D NAND chips for its own SSDs and other products, has started shipping the memory externally in the third quarter of 2018, according to the sources. Samsung is also slowing down the pace of expanding its 3D NAND chip output, with new production capacity unlikely to go online until the first half of 2019, the sources said.

Samsung has also put on hold its plans to build additional new production capacity for 1ynm DRAM chips at its fabs in Hwaseong and Pyeongtaek, the sources continued. The chip vendor previously planned to build an additional 30,000 wafers monthly for DRAM memory starting the third quarter of 2018, the sources said.

In addition, SK Hynix has decided to slow down the pace of its new 3D NAND chip capacity expansion project, the sources noted.