Samsung to invest $18 billion in memory chip business

Lucy Hill
July 5, 2017

Samsung Electronics' plant in Pyeongtaek is the world's biggest plant based on single semiconductor line.

Samsung may expand its semiconductor manufacturing capacity in Xi'an, China, by adding a second fab there.

"With the dedication and support of our employees, customers and partners, our new Pyeongtaek campus represents a new chapter in Samsung's semiconductor operations", said Kwon Oh-hyun, vice chairman and CEO of Samsung Electronics, at the ceremony.

Samsung is planning to invest 21.4tn won (about $18.6bn, £14bn) in South Korea to extend its lead in memory chips and next-gen smartphone displays, the company said on Tuesday, 4 July.

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As global chipmakers shift their focus to higher capacity V-NAND chips, Samsung announced goals last month to shift half of its NAND chip production to the fourth generation 64-layer chip.

Samsung said its South Korea investment could create up to 440,000 jobs through 2021 and will help boost the economy. The manufacturer laid out plans in May to invest roughly 10 trillion won at a plant in the Chinese city of Xi'an and recently said it would put $1.5 billion into a system chip factory in the US state of Texas.

Samsung will invest a total of 30 trillion won into its current Pyeongtaek line to expand its fabrication capacity by 2021. Samsung uses OLED screens for its high-end Galaxy smartphones. Although amount of investments has not been decided yet, it is likely that Samsung Display will invest significant amount of fund since it will be constructing a new industrial complex. It routinely invests more than $10 billion in chips annually, helping it stay ahead of competitors such as cross-town rival SK Hynix and Japan's Toshiba Corp.

The announcement also came after newly elected South Korean President Moon Jae-In set tackling rising unemployment as his top priority. It is heard that Samsung is now discussing with South Korean Government and Chinese Government in order to construct additional line in Xi'an. The factory's production capacity is equivalent to around 200,000 300mm wafers per month, but Samsung's additional investments likely will almost double that figure by 2021.

Other reports by TheDailyFarc

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