According to Korean media The Elec, Samsung Electronics plans to officially stop the production of 2D NAND flash memory storage this year and comprehensively transform related old production lines to adapt to the rapidly growing demand for artificial intelligence computing power and high-bandwidth memory (HBM).
The report pointed out that Samsung’s production line 12 at its Hwaseong base in South Korea is currently mainly used to produce 2D NAND, and this process is already an “old technology.” The production line has a monthly production capacity of about 80,000 to 100,000 12-inch wafers. However, with the general trend of 3D NAND completely replacing planar NAND, its original purpose is no longer in line with the market direction. Samsung did not choose to simply shut down the facility, but instead converted a large number of its still valuable wafer manufacturing equipment to the DRAM metallization process, which is the formation of metal wire paths inside the DRAM chip that connect the memory cells.
After completion of the transformation, Hwaseong Line 12 will be used to produce Samsung’s sixth-generation 10 nm-class 1c DRAM. This process node will be used for the next generation HBM4 products. Samsung expects that by the second half of this year, its total monthly 1c DRAM production capacity will increase to approximately 200,000 wafers. The Hwaseong renovated production line will operate in conjunction with Pyeongtaek's P3 and P4 production lines to provide more production capacity support for HBM4.
2D NAND flash memory was first introduced in the late 1990s and has been in mass production for many years. However, in recent years, major storage manufacturers have gradually shifted their focus to stacked structure 3D NAND. Compared with traditional planar NAND, 3D NAND has obvious advantages in capacity density, reliability and overall performance, and is suitable for meeting the needs of data centers and high-end terminal equipment. Samsung plans to completely stop 2D NAND production in March this year to free up more manufacturing space for 3D NAND and other high value-added storage products.
Industry insiders believe that by transforming the original 2D NAND production line into DRAM and HBM-related production capacity, Samsung is expected to further consolidate its position in the global high-bandwidth storage market. Against the current background of tight memory supply, increasing the effective production capacity of advanced DRAM and HBM will also help alleviate the tight storage supply and upward price pressure to a certain extent.