Samsung Electronics to spread chip production at largest plant by next year

It is being revealed that Samsung plans to expand its P3 factory in Pyeongtaek, South Korea.

Samsung Electronics to spread chip production at largest plant by next year

Reportedly, Samsung Electronics intended to increase chip production capacity. They plan the same at its largest semiconductor plant next year. In spite of expecting an economic slowdown, one of the South Korean newspaper reports late recently.

This move depicts the scaling back of investment by competitor chipmakers that arise with the decrease in demand. While analysts have said that Samsung’s continuous demand in regard to investment plans will probably help it. To take market share in memory chips and also support its share price when demand going to recovers.

According to an unknown source, it is being revealed that Samsung plans to expand its P3 factory in Pyeongtaek, South Korea. It is achieved by adding a 12-inch wafers capacity for DRAM memory chips.

They will also expand the plant with an extra 4-nanometer chip capacity. The same will be made under foundry contracts, which means as per the client designs.

Notably, the P3 which started making cutting-edge NAND flash memory chips is the company’s biggest chip manufacturing facility. In addition to this info, Samsung is planning to sum at least 10 ultraviolet machines by next year, the newspaper said.

Samsung stands behind their original infrastructure investment plans

Notably, in October, it is been said that they were not opting to cut chip production intentionally. As this goes against the broader industry’s capacity to scale back output.

“We plan to stand behind our original infrastructure investment plans,” Han Jin-man, executive vice president of memory business at Samsung, said then.

Also, memory chip competitor Micron Technology Inc said last week that it would accommodate its investments in fiscal 2023 between $7 billion and $7.5 billion. As compared with $12 billion which is in the fiscal year 2022 respectively. It would also be “significantly reducing Capex” plans in fiscal 2024.

Besides, TSMC’s October 2022 shrinks its 2022 annual investment budget by at least 10% and affects a more attentive note than usual forthcoming demand.

“The chip industry downturn will add to the difficulties of No. 2 and below chip companies, and have a positive impact on the market control of top companies such as Samsung,” Greg Roh, head of research at Hyundai Motor Securities, said in a client note on recently.

JOIN US ON TELEGRAM GOOGLE NEWS

Exit mobile version