Samsung to outsource Image Sensor Production
Samsung Electronics has signed an agreement with UMC (UMC) to produce image sensors and display drivers at UMC’s P6 plant in Nanke, Taiwan, which will have a production capacity of 27,000 wpm, running primarily at 28nm. Most of the plant’s capacity is expected to be allocated to Samsung when the plant opens in 2023. As part of the deal, Samsung is expected to sell 400 units of unspecified fab equipment to UMC.
Samsung’s image sensor demand has outstripped its production ability even as Samsung is planning to expand its internal production capacity by 20% to 30% this year through the conversion of one of its DRAM fabs. A number of South Korean equipment suppliers are expected to benefit from Samsung’s CIS expansion, so if Samsung’s UMC deal changes that long-term timeline, expectations would have to be adjusted, but given that the UMC fab is not expected to be in production until 2023, we expect Samsung’s current internal CIS expansion plans will continue this year.
Samsung’s image sensor demand has outstripped its production ability even as Samsung is planning to expand its internal production capacity by 20% to 30% this year through the conversion of one of its DRAM fabs. A number of South Korean equipment suppliers are expected to benefit from Samsung’s CIS expansion, so if Samsung’s UMC deal changes that long-term timeline, expectations would have to be adjusted, but given that the UMC fab is not expected to be in production until 2023, we expect Samsung’s current internal CIS expansion plans will continue this year.
RSS Feed