Samsung Expected to Spend Mammoth $18 Billion for Boosting Chip Production Capacity – Demand Increases as Smartphone Race Heats up

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Jul 5, 2017
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As demand for flash memory for mobile devices and other products head through a frenzy, Samsung wants to cement its position of being the largest memory chip producer in the world. In order to bring its plan to fruition, the company has intended to begin investment in a fabrication plant that will allow it to heavily reduce the disparity between supply and demand. Luckily for Samsung, it has the necessary capital to make all of this possible.

Samsung’s Plant Will Be Present as a Cutting-Edge Hub for NAND Flash Memory – Demand for Such Components Is Peaking Due to Increased Smartphone Shipments

Samsung’s current fabrication plant has the capacity to produce 200,000 300mm wafers per month, but with the massive investment being injected, that figure could nearly double by 2021. The company’s official has stated that the amount of money Samsung is spending will bring about the single largest fabrication plant in the industry. However, this is not the only course of action the company has envisioned as it stated on Tuesday that it would invest an additional $5.22 billion in an existing plant in South Korea’s Hwaseong.

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Unfortunately, Samsung did not care to detail the products that would be manufactured there. The company has definitely gone on the offensive, with other plans such as pouring $1.5 billion into a system chip factory in the U.S. state of Texas also included.

Currently, Samsung holds the highest market share in the world in memory chip production, with 35 percent, according to IHS Technology. With the ongoing struggle of Toshiba, Samsung aims to become the ultimate opportunist in gaining a huge advantage over its rival.

In short, the South Korean company wants to achieve a higher product yield in mass production of cutting-edge 64-layer 3D NAND flash memory than Toshiba, who is currently holding the number 2 spot. According to a securities analyst, Samsung is around a year ahead of Toshiba in mass production technology, and the sizable investment that the Korean giant is pouring, that should widen the gap even further.

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Samsung has near-limitless capital on its hands to Toshiba behind by miles, and we’re inclined to say that the former’s chances of being unrivaled in this industry hold immutable for the near future.

Source: Nikkei

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