SK Hynix is planning to mass produce 36-layer 3D NAND flash chips in the second half of this year. Also, it will start producing 48-layer products from next year, opening the era of 3D NAND Flash in earnest.

NAND-based flash memory retains data without power, and 3D NAND flash memory stacks memory cells vertically to maximize storage capacity in a small area.

During the conference call after its Q1 earnings release on April 23, SK Hynix said, “We have developed 24-layer 3D NAND flash chips and completed the preparation for mass production at the end of last year. The first to be mass produced will be the 36-layer products. Also, we will start preparing the mass production of the 48-layer 3D NAND flash memory chips from the end of this year so we can have cost competitiveness next year.”

A 3D NAND flash chip is a product that sparks keen development competition among global semiconductor businesses. While Samsung Electronics is expected to produce 48-layer 3D NAND flash chips later this year, overseas businesses such as Intel and Micron are jumping into the race.

According to data collected by market research firm IHS, Samsung Electronics came in first with US$9 billion (9.75 trillion won) in the global NAND flash market last year; Toshiba in second with US$7.8 billion (8.45 trillion won); Micron in third with US$4.6 billion (4.98 trillion won); and SK Hynix in fourth with US$3.1 billion (3.36 trillion won).

SK Hynix is rapidly narrowing the gap with other companies. In addition to 3D NAND flash chips, the company is planning to release 16 nm TLC-based NAND flash chips and increase its share to the latter half of 10 percent in Q2 and 40 percent by the end of the year. Also, it will launch TLC-based Solid State Drive (SSD) chips and expand its share to 20 to 30 percent in Q3. SK Hynix has announced that the construction of its new M14 DRAM factory in Icheon, Gyeonggi Province, is in its final stage. From next month, semiconductor production equipment will be stocked and start operating from the end of this year. Once the factory starts its operation, the DRAM production capability will reach up to the level of 15,000 wafers. The company showed the conservative position on microfabrication technology, in which semiconductor companies are currently competing.

It announced that it would unveil a late-10 nm DRAM sample product in June next year. Currently, Samsung Electronics is about to mass produce late-10 nano DMRA products. Due to the rise of exchange rates, the equipment investment cost has increased by the won. The investment this year will grow from a low 5 trillion won (US$4.62 billion) to mid 5 trillion won due to the rise of the exchange rates.

Until Q1, about 2 trillion won (US$1.85 billion) has been invested. DRAM accounts for 80 percent of the investment, while NAND flash accounts for 20 percent. On the same day, SK Hynix posted 4.818 trillion won (US$4.45 billion) in sales, 1.589 trillion won (US$1.47 billion) in operating profits, and 1.29 trillion won (US$1.19 billion) in net profits in Q1. It recorded 33 percent in the business profit rate and 27 percent in net profit margin. Even though the operating profit in Q1 increased 50 percent from 1.057 trillion won (US$975.9) a year earlier, the figure decreased 5 percent from 1.667 trillion won (US$1.54 billion) in Q4 last year, which was a historic record high.

By: DocMemory
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