Samsung Is to Boost DRAM Production by Upgrading Existing Fabs

Amidst high demand for dynamic random-access memory, South Korean giant Samsung Electronics has decided against building new manufacturing facilities: instead of physical expansion, the company is focusing on optimizing existing capacity and transitioning to more advanced process nodes.

Line Optimization in Pyeongtaek and Fab Conversion in Hwaseong 

A key element of Samsung's strategy to increase DRAM production is transitioning from the 1b process node to the more advanced 1c node, alongside re-equipping its operational fabs. Equipment is being actively upgraded at the Pyeongtaek site; it accounted for 49.5% of the company's DRAM output last year, and that share is expected to rise to 55.4% next year. 

Simultaneously, in Hwaseong, legacy 2D NAND lines are being repurposed for DRAM testing and packaging. Converting these established lines enables volume scaling without unnecessary expenditure, though it does carry technological limits. 

According to Omdia forecasts, Samsung's DRAM output will grow by 6% this year (reaching 8.2 million wafers) and by just 1.3% next year.

Cost-Cutting Amid SK Hynix's Aggressive Push 

While Samsung strives for maximum efficiency across existing lines, its primary competitor, SK Hynix, is taking a more aggressive route. 

SK Hynix plans to increase its wafer processing volume by nearly 10% this year, bringing the total to 6.66 million units. As a result, Samsung's lead over SK Hynix in DRAM output, which stood at 27% last year, could narrow to 13.6% by the end of next year. 

Analysts note that during memory shortages, SK Hynix's expansion strategy offers greater flexibility to saturate the market, whereas Samsung relies on process-node advancements and product quality.