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Samsung Moves to Boost DRAM Output to Keep Apple From Buying Chinese Memory

The company says consolidating end‑fab work at Hwaseong with a new back‑end line will raise commodity DRAM supply to protect major customers.

Overview

  • Samsung is reallocating and expanding end‑fab capacity at its Hwaseong Campus Complex 1 to raise general‑purpose DRAM output by roughly 15 percent by the end of 2026.
  • The consolidation will let wafers move directly from main fabs to back‑end process lines in bulk, cutting transport time and increasing throughput without adding front‑end wafer fabs.
  • Reports published July 27–29 say the operational push is driven largely to meet Apple’s urgent memory needs and to reduce the chance Apple turns to lower‑cost Chinese memory suppliers under current U.S. sourcing limits.
  • Rising commodity DRAM prices, fueled partly by a multi‑year shift of capacity toward AI memory and tight market concentration among Samsung, SK hynix and Micron, have squeezed device makers’ margins and pushed up smartphone costs.
  • Industry observers and the recent U.S. class action alleging coordinated production decisions say longer‑term price relief depends on new fab capacity and will likely not arrive until 2027–2028, keeping short‑term legal and market risks in play.