Samsung Electronics is looking to outsource the production of its memory controllers amid tight capacity at its own foundry, according to market sources.
Samsung continues to make smartphone APs and other chips that yield higher margins in-house, but has recently skipped memory controller orders placed by its affiliate due to tight capacity at its foundry, the sources indicated.
Samsung Foundry intends to take orders selectively in favor of major clients amid tight capacity, said the sources, adding that it has also given supply priority to products that yield higher margins.
Besides, Samsung has suspended mature-node chip production at its Austin fab, which was hit by a winter storm in February. Production at the fab has not been fully restored, bringing further constraints to its foundry supply, the sources noted.
Support from other foundries is now an alternative for Samsung to ease its tight supply of memory controllers, the sources said. Due to its tight supply of memory controllers, Samsung may suffer from a cutback in customer orders for eMMC and other embedded memory devices, the sources suggested.
Samsung Foundry, along with other foundries, will experience tight capacity through the second half of this year, the sources believe.
In other news, memory controller specialist Phison Electronics has reiterated its sufficient supply for embedded devices and SSDs. Phison, which already raised its flash controller chip prices by 20-30% in the first quarter, is also poised to make another 20-30% upward adjustment in its quotes in the second quarter.
