Samsung Electronics has announced to spend about $14.7 billion on a new chip production plant in South Korea, a major step to boost on its semiconductor business. The aim of the new plant is to increase Samsung’s competitiveness in the semiconductor industry,
Samsung is already the world’s biggest memory chip maker and the new plant will definitely help boost its competitiveness in the semiconductor industry.
Samsung said in a statement today that the construction of the new chip plant will begin next year in Pyeongtaek, a city south of Seoul and is expected to be operational in 2017.
The plant in Pyeongtaek will make either logic or memory chips. A final decision on the type of chips had not been made yet.
“Right now the only part of the company that is bringing in steady profits is the semiconductor division, so it looks like the company will keep investing in the business” said IM Investment analyst Lee Min-hee.
“The investment will significantly influence the shaping of Samsung’s future semiconductor business” Kwon Oh-hyun, co-chief and a vice chairman of Samsung Electronics, said in the statement.