Samsung reportedly plans to invest billions of dollars to expand its 3D NAND production facility in Xian, China. If the company proceeds with the plan, bit production capacity of the fab would increase significantly.

According to Chinese media, the world’s largest supplier of NAND flash memory reportedly intends to spend $8 billion on expansion of its fab in Xian. Back in 2017, Samsung already announced plans to invest $7 billion over the following three years to boost the production capacity of its Xian facility, so the new investment will be spent on a third expansion of the fab.

Physical expansion of the Xian production facility will allow Samsung to further increase its 3D NAND bit output, giving Samsung more physical capacity and helping to offset the longer and more intensive manufacturing process required for high layer counts in 3D NAND. According to a media report, Samsung's Xian fab can now process 120,000 wafer starts per month. After the expansion, it will reportedly increase its output to 130,000 wafer starts per month, but it is likely that these will be 3D NAND wafers with a higher number of layers.

Samsung has not formally confirmed the $8 billion investment plan, but earlier this year the company indicated that it would be ‘flexible’ in expanding the Xian production facility.

Samsung currently produces 3D NAND at three sites: in Hwaseong and Pyeongtaek in South Korea and Xian in China.

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Sources: Reuters, Pulse News