Samsung could follow Micron by outsourcing DDR5 and SSD production to third parties to focus on more lucrative HBM and…
- Samsung is shifting additional DDR5 and SSD production to outside manufacturers
- The company needs internal factory space for advanced HBM production
- DDR5 module assembly remains simpler than advanced HBM packaging processes
Samsung Electronics is shifting all additional production of conventional memory modules onto outsourced partners going forward.
The company is directing capacity growth for DDR5 modules and SSDs toward external firms, reserving its in-house capacity for the more advanced HBM packaging process.
Industry sources say this reflects Samsung's mounting need to use scarce back-end capacity more efficiently.
A deliberate pivot toward outsourced capacity
“Samsung Electronics lacks space to expand existing back-end production lines needed to manufacture semiconductors for artificial intelligence (AI), so it is reallocating space and equipment at packaging plants in Cheonan and Onyang to advanced packaging lines, including HBM,” a person familiar with the matter said.
“The company has decided to handle most increases in conventional memory module...
Copyright of this story solely belongs to www.techradar.com. To see the full text click HERE
