The memory market is red hot and it is time to invest in the next upturn. If you are a semiconductor memory company, you need bricks and machines. It has not yet been successful to move memory production to foundry so there is a direct correlation between capital investments and future revenue. Samsung is already dominant in the NAND market and has decided to keep it that way by approving a 7B$ investment in a new NAND fab in China.
The scale of this investment should be seen in relations to the capital investments of the other players in the industry. The chart shows the capital investments for the entire company and not a specific investment into memory capacity. However, it is still pretty obvious who is investing in the future and who is sitting watching. Western Digital became the 2nd largest NAND company in Q2 overtaking a struggling Toshiba. Both companies are investing very carefully at the moment and combined it would take both their entire group capital investment for 5 years to pay for the Samsung fab. Both number 4 and 5, Hynix and Micron are signicanlty more aggressive but still some distance from Samsung. Their investment is however fully made into memory capacity.
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