Samsung Electronics China fab operation rate gets a massive 70% boost

Samsung Electronics lowered its China fab operation rate to 20 to 30% in the second half of last year, and now due to the NAND price rebound, the rate got a massive 70% boost. However, this increased policy will reportedly reduce the burden on domestic materials and component companies.

As per the report, Samsung Electronics China fab operation rate has exceeded 70% because of the bounce in NAND price that began in the fourth quarter of last year. To be mentioned, the prices of NAND began to rebound in October of last year and have been on the rise for five months.

Overall, the fab operation rate which the South Korean tech giant reduced to 20-30% to respond to the deterioration of the memory industry is now gradually increasing the operation rate as inventory adjustments progress. On the other side, production cuts and demand recovery have also increased Global NAND sales.

An official familiar with Samsung Electronics matters explained, “Recently, the Xian fab’s utilization rate has exceeded 70%,” adding, “This increase in utilization rate has been influenced by the increase in sales of smartphones by Chinese companies due to the patriotic consumer craze in China.”

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FYI, China Fab is Samsung Electronics’ only overseas memory production base and is known to have a monthly production capacity of 200,000 12-inch units. This is approximately 40% of Samsung Electronics’ total NAND production. However, as the conversion to the 8th generation (236 layers) process is currently underway, monthly production is expected to have decreased somewhat.

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