Samsung Announces $7 Billion USD Memory Expansion to Meet Demand for Smartphones and Other Applications
Samsung has made a memory expansion announcement, detailing than an amount of $7 billion is going to be added to increase the units of memory-related products, which includes NAND flash and DRAM chips. The interesting thing to note here is that the facility is going to be established in China, and as smartphone giants such as Huawei and Xiaomi aim for stretching their reach to other markets around the globe, it will come with an increasing demand of these components.
China Is the Biggest Consumer of Semiconductors – Other Players Including Samsung to Establish Their Manufacturing Bases There
Samsung is currently the largest producer of NAND flash and DRAM memory and its $7 billion investment is going to be spread over a time span of three years, starting with the year 2018. As per the latest reports, companies stationed in Korea exported around $66.4 billion of USD worth of semiconductors in China, a record high amount.
There are several Chinese smartphone manufacturers that will be requiring a use for NAND flash and DRAM memory, including Huawei, Xiaomi, Vivo and OPPO and since the aforementioned companies are going to be expanding to other countries real soon, the existing number of phone units should increase in the near future as well.
China at the same time is also looking to establish local manufacturing facilities to depend less on the likes of Samsung but it will definitely take a while before they are able to churn out the same volume as Samsung. In addition to memory and storage found in smartphones, these components will also find their way in notebooks as more and more of these machines start embracing mobile chipsets.
In addition to portable products, server-related applications will also require the use of hefty amounts of storage and memory. However, Samsung is not the only company that is attempting to gain a lead in this market. Both Toshiba and Western Digital have invested a large sum of money in Japanese production bases, hence the massive investment from Samsung’s side.