Samsung Electronics has stepped up its buying of NAND flash chips from outside sources, while reallocating its own NAND flash lines for the production of mobile DRAM parts, a strategic move towards more flexible production in order to expand its presence in the market for embedded memory solutions particularly embedded multi-chip package (MCP) devices, according to industry sources.

　　Embedded MCP memory solutions are being deployed rapidly in smartphones as well as other mobile devices. This popular component is a single package combining different memory technologies including NAND flash and mobile DRAM.

　　Samsung already dominates the global mobile DRAM market with more than 50% market share. While allocating more of its available capacity to the production of mobile DRAM chips, Samsung intends to expand the purchase of NAND flash parts from outside, the sources indicated. Such moves are aimed at outputting more eMCP and other embedded storage devices to meet the growing market demand, the sources said.

　　The market for eMMC and eMCP memory devices has been in a tight situation since 2013, due to brisk demand coming from the smartphone and tablet sectors. Acknowledging the huge market potential, Samsung is looking to own a significant portion of the available production capacity worldwide, the sources believe.

　　In addition, manufacturing mobile DRAM chips is currently more profitable than producing NAND flash parts, the sources continued. Also in a move to ensure a steady supply of all chips, Samsung is partnering with fellow NAND flash companies while increasing its in-house production of mobile DRAM products, the sources said.

　　The sources did not disclose any supplier names.