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Singapore Becomes Beachhead Helps Micron Launch Offensive in NAND Flash Market
Micron is one of the top three monopolists in the DRAM market, while it lags behind in the NAND flash memory market. Massive investments in Singapore, where Micron has been creating a base for the production of NAND memory for over 15 years, was converted in 2021 into the company’s third NAND factory in this state, and this is a chance to catch up with industry leaders Samsung, SK Hynix and the Kioxia / WD tandem.
Micron manufacturing facility in Singapore. Image source: Micron
It should be noted that the Singapore authorities are going to meet Micron and not only. Singapore has the lowest tax burden on investments and capital expenditures – 79 points on a 100-point scale, where 100 points are the highest tax on capital expenditures and investments in the United States. In Japan, by the way, the tax burden on capital expenditures is estimated at 99 points, and in South Korea – at 81 points. As we can see, Singapore strives to remain attractive for foreign investment, which is what Micron is using.
Although Micron has a market share of only 11% of the NAND market, it has mastered the most advanced and sophisticated 3D NAND memory industry. Singapore-based facilities have been massively releasing the world’s densest 176-layer 3D NAND flash memory since October last year. Probably, this record will hold on for a couple of quarters, but it can be beaten by Samsung, SK Hynix and even the Chinese company YMTC, which announced the imminent start of production of 196-layer 3D NAND.
Image source: Micron
Micron has a hard time. Especially after breaking off NAND development and manufacturing cooperation with Intel in 20221. And worst of all, Intel’s flash business has agreed to buy South Korean SK Hynix. When that happens by 2025, SK Hynix could move into second place in the market, pushing away the Kioxia / WD tandem. I wonder how much the Micron will do in this time? Today it is full of enthusiasm, and the DRAM and NAND markets delight manufacturers with the promise of higher product prices. The Stars Are Aligned, Wish the Micron the Best of Luck.