Samsung reducing DRAM investment to focus on NAND flash
At its investor relations event for institutional investors, Samsung has revealed that it’s going to reduce investment in DRAM to focus more on NAND flash. This is the first time that Samsung has directly confirmed its plans to reduce investment in DRAM. It has previously been reported that Samsung has seen a decline in DRAM sales that have hit the company’s bottom line.
Samsung’s NAND flash business is a cash cow for the company and it can make up for declining sales in the DRAM sector. Constant cost reduction has enabled Samsung to further increase its margins in the NAND sector from 17 percent to 25 percent this year. Samsung is now expected to increase its investment in production facilities for NAND flash memories as it seeks to keep competitors like SK hynix and Intel at bay. Samsung remained at the top of the global NAND flash market last year with a 31.6 percent market share and it’s not looking to concede that anytime soon.