Samsung to invest an additional $18 billion in memory chips
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Samsung Electronics – already the world’s largest chip manufacturer – is planning to expand its chip manufacturing facilities in South Korea and elsewhere in order to address a growing demand for memory chips.
The company accounted for nearly half of all global memory chip sales in the first quarter of this year, and it is by a long way the world’s largest chip manufacturer.
Samsung plan to increase investments in its Pyeongtaek plant to $26 billion by 2021. The plant, which now has begun mass production, will focus on the production of Samsung’s fourth-generation vertical NAND (V-NAND), which stacks memory cells vertically. A further $5 billion will be committed to expanding production at its manufacturing plant in Hwaseong, also in South Korea.
It will also develop its 3D NAND memory chip plant in Xi’an, China, in order to meet demand for components for high-end electronic storage products. A second semiconductor fabrication line will be added to the one currently in operation in the city.
Samsung have said that its $18 billion investment could help create as many as 440,000 jobs by 2021.
Samsung suffered a blow to its quarterly profits and international reputation after a high-profile mass recall of its Galaxy Note 7 smartphone in September 2016, following reports that some batteries erupted into flames as a result of a manufacturing defect causing excessive heat to be generated. The Galaxy Note 7 was quietly returned to the market this week, repackaged as the Galaxy Note Fan Edition (FE) at two-thirds the original price.
Despite this drawback, Samsung reported huge profits last year thanks to its chip manufacturing business, which supplies to other tech giants, including Apple.
Meanwhile, Samsung Display is considering plans to establish a new OLED manufacturing plant in Asan, South Korea, by the end of next year.