Samsung To Invest Heavily In Memory Chip Plants

Tammy Harvey
July 5, 2017

Samsung is also planning to expand the NAND chip plant within Xian in order to meet the demand for chips utilized within high end storage products it claimed.

Samsung also said it will add a production line to its NAND plant in Xi'an, China, though it has not yet set an investment amount or time frame.

The step will reportedly propel Samsung to record profit this year with the company pledging to create almost half a million jobs in four years. 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.

"Samsung is being more aggressive in domestic investments because of the current climate", said Park Ju-gun, head of corporate analysis firm CEO Score, as quoted by Reuters. This sizeable investment will focus particularly on research and development for memory chips to safeguard Samsung's lucrative status as the world's biggest chipmaker. 'Any oversupply issues will be temporary and limited to seasonally weaker periods'.

It is expected that its investments will create 440,000 jobs while production inducement effect will be around $141 billion (163 trillion KRW).

The latest move reportedly comes as a response to repeated calls to big corporations from the South Korean government to invest domestically as part of a job-creation plan.

In China, some South Korean firms have suffered from sales decline or have been forced to scale down operations after retaliatory measures from Beijing over the deployment of a United States anti-missile defence system outside Seoul, but component makers such as Samsung have not yet been affected.

Samsung also plans to invest six trillion won in its existing plant in Hwaseong to establish a semiconductor fabrication line with state-of-the-art infrastructure to prepare for the future semiconductor market.

The South Korean firm accounted for 40.4 per cent of global memory chip revenue in January-March, showed data from researcher TrendForce, making it hard for electronics makers to entirely avoid buying its chips.

The South Korean conglomerate celebrated its first shipments Tuesday from a semiconductor plant in Pyeongtaek, on the outskirts of Seoul, that recently began mass production.

Other reports by Ligue1talk

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