Tuesday, August 29, 2017

Samsung To Invest $7 billion in Chip Plant

Xian Chip Plant in China
Samsung a renowned electronics giant, is looking forward to strenghtening its lead in the NAND memory chip sector with a massive billion dollar investment in China.

Samsung who is also the world’s largest semiconductor company said Tuesday it will invest $7 billion (7.87 trillion won) to speed up its NAND memory production in its Xian plant in China. Samsung opened the world’s largest semiconductor plant in Pyeongtaek, Gyeonggi Province, last month, seeking to meet surging demand for state-of-the-art 3D NAND flash chips.

Currently, Samsung has approved $2.3 billion of the new investment over the next three years.

A Samsung official quotes “The investment is aimed at meeting rising demand for NAND flash products in the mid-to-long term,” 

Samsung is currently the world’s largest chipmaker in both DRAM (used for computers) and NAND flash (used for mobile devices) memory sectors.

The company will discuss the plan with the Chinese government, as they hope to achieve incredible results within this year and start production in 2019.

Recently, the global chip market is in short supply and Samsung is taking advantage of the memory chip “super cycle,” which helped it reach a record profit in the second quarter of the year.

Last month, Samsung reported an operating profit of 14.07 trillion won in the cited period and its chip business was the key driver at 8.03 trillion won.

The global NAND memory market was worth $37 billion and Samsung notched a 36.1 percent market share over distant runner-up Toshiba’s 17.4 percent.

Last month, Samsung announced it would invest 37 trillion won in expanding manufacturing facilities for chips and display panels by 2021.

Author:

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