Samsung’s Massive $14 Billion Plant Will Help Chip Maker To Keep Its Lead

Ramish Zafar
Posted May 7, 2015
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When it comes to spending, one thing’s for sure, Samsung has enough resources to outspend most manufacturers in the market, Apple included. The Korean electronic giant’s resources have come into play quite strongly this year, with Samsung’s launch of the 14nm Exynos 7420 Octa, which has clearly managed to shake things up the mobile processor market by a large margin. And looks like Samsung’s determined to outspend its competition even more, as the company has announced that its going to build a new plant just outside Seoul at Pyeongtaek.

Samsung To Build New Chip Foundry Costing $14 Billion In South Korea

Samsung’s planned to have a busy time this year. Following its advancements in chip fabrication, the South Korean manufacturer has orders lined up from the likes of Apple, for its A9 on this year’s iPhone, to Qualcomm, for the US chip giant’s Snapdragon 820. Not only this, but Samsung’s also got its own chip plans as well. The company’s Mongoose cores for future Exynos processors have already received software instructions, and stand in line to compete directly with Qualcomm’s Kryo cores for the Snapdragon 820 mentioned above. The new plant is expected to start production by 2017.

“The Pyeongtaek semiconductor plant will play a central role in solidifying leadership in the mobile and server markets, which have shown rapid growth in demand recently, and securing share in the next-generation internet of things market,”according to Samsung. The company’s also expected to invest another 9 Billion to further boost the factory’s capabilities, make it one of the most ambitious projects currently in the industry. According to local news sources, Samsung’s expected to manufacture DRAM chips at the new facility, though we’d be surprised if all that capital isn’t also diverted towards chip manufacturing where Samsung is clearly in a position to build a long lasting lead. Stay tuned and let us know what you think in the comments section.

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