Stefan Mileschin

Samsung is to build a new memory chip production line in China in late March as part of a cunning plan to boost NAND flash technology to meet future demand.

The tech giant said in August last year that it expected to invest $7 billion over the next three years to expand its NAND memory chip production in China’s northwestern city of Xi’an, but had not said when.

The rapidly growing data centre market, which needs more memory capacity to handle increasing data traffic, is expected to underpin revenue growth and margins for Samsung’s NAND Flash business in 2018, research provider Trendforce said.

Samsung’s revenue from NAND in the fourth quarter of 2017 rose 9.8 percent from the previous quarter to $6.17 billion, Trendforce said, as demand from both smartphone and server markets lifted shipments and average price.

Samsung will formally begin the process near month-end at Xi’an, earmarked for NAND flash production, the spokesman said but did not give any other details.

DRAM chips are seeing robust demand from servers NAND flash chip shipments and price movements are moving within what Wall Street expects, but there’s a chance that supply will become tighter again in the second half of 2018 due to rising demand.

The expansion is not expected to affect memory chip supply until 2019 at the earliest, analysts said.

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