Despite estimates of an economic downturn, Samsung Electronics intends to expand chip production capacity at its greatest semiconductor power station next year, according to a South Korean media outlet late on Sunday.
In contrast, rival chipmakers have reduced their investment due to declining demand and chip oversupply.
Analysts believe that Samsung’s persistence in investing will help it boost sales of memory chips in the market and assist its share price once demand starts to recover.
According to the Seoul Economic Daily, citing unnamed industry sources, Samsung intends to expand the P3 factory located in Pyeongtaek, South Korea, by incorporating a 12-inch wafer capacity for DRAM memory chips.
The plant will also be expanded with an additional 4-nanometer chip capacity, which will be manufactured under foundry contractual agreements that is, as per the client designs as stated in the paper.
P3, the firm’s largest chip production plant, started the manufacturing of NAND flash memory chips with cutting-edge technology this year.
According to the newspaper, Samsung plans to add at least ten extremely ultraviolet pieces of machinery next year but Samsung did not respond to the report.
In October, it stated that it was not planning intentionally reduce chip production, disobeying the industry’s trend of reducing production to meet mid-term to long-term demand.
“We plan to stand behind our original infrastructure investment plans,” Han Jin-man, executive vice president of memory business at Samsung, said then.
Source: money.usnews.com
Micron Technology Inc, a competitor in memory chips, announced last week that it would reduce its financing in fiscal 2023 somewhere between 7 billion USD and 7.5 billion USD, down from 12 billion USD in fiscal 2022. It would also significantly reduce capital expenditure plans in fiscal 2024, according to the firm.
Taiwanese chipmaker TSMC reduced its 2022 annual fund budget by at least 10 percent in October, sounding more careful than usual about future 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 Monday.
Source: money.usnews.com
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