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Samsung will spend another $ 9 billion on new plant for memory chips
24.04.2021 [21:07],
Vladimir Mironenko

Reuters, citing local online publication MoneyToday, announced Samsung Electronics’ intention to invest at least 10 trillion won ($ 9.2 billion) in the construction of a chip plant in South Korea, thereby increasing the initial financial investment by 62%. The plant will be located in Pyeongtaek, south of Seoul.

REUTERS / KIM HONG-JI

Late last year, the world’s largest chipmaker said it plans to spend about KRW 15.6 trillion on plant construction to expand its semiconductor business and offset declining smartphone revenues. This is the company’s largest investment in a single production facility.

The new plant is due to start operating in 20021. It is assumed that memory chips will be produced here. Mobile processors are also available depending on market conditions.

In response to a request for comment on this post, a company spokesperson stated that no decisions on additional investments in the construction of the plant have yet been made.

cnmeonline.com

Samsung’s plans to build a new plant raise concerns of experts about possible future price wars for semiconductor products.

Last year, Samsung’s semiconductor capital expenditure totaled KRW 14.3 trillion. Analysts believe that the current investment does not go beyond the planned expenses of the company, as this amount will be spent over several years.

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