What cant be ignored is that Samsung, the industry leader, has also taken frequent actions in the field of flash memory recently. On June 1, it announced that it would expand the production of NAND flash memory chips in the pingze factory of South Korea. Meanwhile, the companys flash memory project in Xian is also continuously expanding investment, and plans to build the worlds largest flash memory chip manufacturing base.
Observer network noted that affected by the above news, a shares early today, photoresist, semiconductor, domestic chips and other plates have strengthened. In terms of stocks, core micro, North Huachuang, China micro, Beijing Junzheng, Huate gas, Huafeng measurement and control and other integrated circuit concept stocks all rose sharply.
Phase I mainly realizes technological breakthrough
According to Ziguang group, the national memory base project of Yangtze River storage is jointly invested and constructed by Ziguang group, national integrated circuit fund, Hubei science and technology investment group and Hubei integrated circuit fund. It is planned to build 3dnand flash memory chip factory in two phases, with a total investment of 24 billion US dollars.
Among them, the first phase of the project started construction at the end of 2016, and the progress is smooth. The 32-layer and 64 layer storage chip products have achieved stable mass production.
At the commencement ceremony, Zhao Weiguo, chairman of Ziguang group and Changjiang storage, said that since the construction of the first phase of the national memory base project started, it has become a world leading memory chip factory from a wasteland, realizing the leap of technical level from following to running.
In 2018, Yangtze River storage broke through 32-layer 3D flash memory, 3-4 years behind foreign countries; in 2019, it realized 64 layer technology mass production, and 2 years behind foreign countries; in April this year, Yangtze River storage successfully developed 128 layer qlc3d flash memory, if mass production was achieved at the end of 128 layers, the technology gap with Samsung, Hynix, Meguiar and other foreign manufacturers would be narrowed to 1 year, and the first phase of technology breakthrough task has been basically completed. The brokerage analysis said.
Huachuang securities analysis pointed out that memory is the basic core chip of information system, which can best represent the scale economic benefits and advanced manufacturing technology of integrated circuit industry, and it is also the integrated circuit product with the largest import amount in China. In recent years, the prices of memory, solid-state drive and graphics card are rising repeatedly, which is rooted in the fact that the memory chip is in the hands of a few foreign manufacturers. Localization will reduce the cost of domestic semiconductor products and increase the orders of upstream equipment companies.
On June 9, based on the second quarter data, semi (International Semiconductor Industry Association) adjusted its forecast of the scale of global wafer factory equipment expenditure in 2021, from the previously estimated $65.7 billion to a record $67.7 billion, with an expected year-on-year growth rate of 24%. Among them, the storage factory has the largest equipment expenditure, which is expected to reach 30 billion US dollars.
According to the statistics of securities companies mentioned above, as of June 20 of this year, the number of domestic equipment manufacturers winning the bid in Yangtze River storage ranked in the following order: North Huachuang (56 sets won the bid), Yitang (46), Zhongwei company (38), shengmei semiconductor (18), huahaiqingke (11), precise measurement electronics (8), Shenyang tuojing (5), Zhongke feice measurement (3), Ruili (2), covering etching, deposition Detection, cleaning and CMP.
Samsung and Hynix are expanding their production
In fact, the global flash market is still highly concentrated and monopolized by foreign manufacturers. In the first quarter of 2020, Samsung, Jiaxia (Toshiba), western data, Meguiar, Hynix, Intel, etc. accounted for more than 99% of the global flash market.
At the end of March, the survey of dramexchange showed that although the spread of the new crown made the kinetic energy of terminal product shipment particularly weak in the first quarter of 2020, in the field of nandflash, due to the contraction of supply in the whole year of 2020 and the conservative capital expenditure of major suppliers, the average price of nandflash in the first quarter still rose by about 5% in the off-season.
Looking forward to the second quarter, the agency pointed out that the buyer attitude of data centers in North America and China market is still quite positive, and enterprise SSD has become the most obvious out of stock product in all application categories. As the proportion of enterprise SSD in the overall nandflash shipments continues to increase, the strong price performance will also drive the overall nandflash average price to rise at least 5% in the second quarter.
With the increase of storage demand driven by housing economy and the increase of price, leading manufacturers have begun to expand production.
On June 1, Reuters reported that Samsung Electronics announced that it would expand its NAND flash memory chip production capacity in Pyeongtaek, South Korea, to bet on future demand for personal computers and servers, as the new coronavirus prompted more people to work at home.
Samsung plans to mass produce the chip in the second half of next year, and the new capacity will help meet the demand for 5g mobile phones and other devices, the report said. Analysts expect Samsung to invest between 7 trillion won and 8 trillion won ($6.5 billion).
Seven months ago, Samsung announced the launch of the second phase of the Xian flash memory chip (NAND) project, with an investment of 8 billion US dollars (56.3 billion yuan). After the completion of the project, 130000 pieces of capacity will be added every month, making Xian the largest flash chip manufacturing base in the world.
Meanwhile, according to DIGITIMES in April this year, SK Hynix will increase nandflash capacity at M15 plant in South Korea.
According to the report, previously, SK Hynix reduced nandflash wafers in 2019 by more than 10% compared with 2018 due to the oversupply of the market, which also slowed down the ramp up speed of its production capacity. However, SK Hynix may also be considering increasing the speed of production increase under the stimulation of Samsung investment acceleration.
Tieliu, a columnist of observer.com, previously analyzed that due to the small market share of Chinese enterprises in nandflash and DRAM, nandflash and DRAM are monopolized by a few large international companies, especially Korean enterprises, which have a very high market share, the price of memory chips is easily affected by the decision-making of monopoly enterprises Changjiang storage has made a breakthrough in 64 layer NAND, which will effectively alleviate the situation of single dependence on import supply in NAND in the future.
Source: Wang Fengzhi, editor in charge of observer network_ NT2541