Samsung Factory Blackouts Or Global Nand Supply May Be Blocked For A Short Time.

According to local media in South Korea, Samsung's NAND factory in Ping Ze in March 9th suddenly suffered an unexpected power failure for 30 minutes. Although an uninterrupted power supply can respond to an emergency of about 20 minutes, in CVD (chemical vapor deposition), diffusion, etching, and ion implantation, a 60 minute blackout may affect 60% of the input wafer (that is, waiting for the wafer to be processed). Under normal circumstances, more than 20 minutes of any power failure will cause more than half of the input wafer scrap. Due to the power failure in Ping Ze plant, global NAND supply is expected to temporarily tighten in March, and it is expected that the accident will reduce the global NAND inventory level.
Citibank analysis shows that Samsung's NAND capacity of 11% in March is expected to be affected. At present, the NAND capacity of Samsung's Ping Ze plant is 90K wafer per month, and the two tier DRAM/NAND equipment is being installed. Despite uninterrupted power supply, it is expected that the blackout will still affect 60% of the capacity. If the total capacity of Samsung NAND is calculated by 514k / month, it is estimated that 11% of Samsung's NAND chip shipments will be scrapped in March. At present, the global NAND capacity is 1557k per month per month, so the global NAND supply in March 2018 is expected to decline by 3.5%.
But Samsung has accident insurance, so the blackout has limited impact on it. Samsung's memory wafer fab has insured the accident, and the accident will receive an insurance compensation, so it has little impact on Samsung's profits. In addition, due to its ample NAND inventory preparation, Samsung's sales and operation will not be affected.
Citibank pointed out that Samsung and DRAM will continue to maintain strong growth by 1xnm and 1ynm drivers. In terms of SK Hynix, strong server DRAM and SSD demand in 2018 will set a new profit record for the company.