A power failure has destroyed 3.5% of NAND Flash memory production
As if NAND Flash prices were not already high enough, an incident at one of Samsung's South Korean factories could cause additional price increases in the coming period
A half-hour power strike at a Samsung plant near Pyeongtaek in South Korea may have long-term effects on NAND Flash costs, unplanned production cuts causing a 3.5% drop in chip stocks NAND, anticipated globally for March. But for Samsung, the loss is over 11% of the monthly output, with additional costs likely to increase prices across the supply chain.
Samsung's upside-down factory on March 9 is used to produce state-of-the-art V-NAND solutions, putting up to 64 NAND Flash chips in a single high-capacity module. These come with smartphones and SSD for PC
It must be said that such power cuts are not entirely unexpected. Probably, Samsung had prepared additional NAND chips to cover the need for this month, thus avoiding too much financial loss
The good news is that Samsung has already prepared substantial stocks of Galaxy S9 and S9 + handsets, the pressure on NAND chip stocks being lower during this period. Probably, until the next wave of launches in the smartphone market expected between August and September, the delays will be resolved