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Samsung spent 41 percent of memory capex in first quarter |
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Apr 13, 2007 at 03:38 PM |
 Samsung has said that it had spent 41 percent of planned capital spending for its memory chip division for the year in the first quarter. During a conference call with financial analysts, the company also said that DRAM memory capacity had declined due to a plan to convert some 200mm fabs to 300mm production that was now underway.
Capital spending for the memory division in 2007 is approximately $5.2 billion with approximately $2 billion of that total spent in the first quarter. The majority of spending was allocated to the continuing ramp of Line 15, Samsung's latest and largest 300mm facility, according to executives at the company.
Samsung executives noted that NAND flash capacity ramps were declining across the whole sector because of node migration challenges and capital spending constraints, in turn due to declining ASPs that topped 50 percent in the first quarter.
The company says that the rapid pace of node migrations will slow as a result of the technical challenges faced by manufacturers transitioning to sub-60nm for NAND flash. This transition will ease over-supply conditions from a bit growth perspective. Executives noted that they expect a shortage in NAND flash supply in the second half of the year.
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