Samsung Electronics to expand chip production at its largest plant

Samsung Electronics plans to extend chip manufacturing capability at its largest semiconductor plant subsequent yr, regardless of forecasts of an financial slowdown, a South Korean newspaper reported late on Sunday.

The transfer contrasts with the scaling again of funding by rival chipmakers amid falling demand and a glut of chips.

Analysts have mentioned that Samsung’s persistence with funding plans will seemingly assist it take market share in reminiscence chips and assist its share worth when demand recovers.

Samsung plans to increase its P3 manufacturing unit in Pyeongtaek, South Korea, by including 12-inch wafers capability for DRAM reminiscence chips, the Seoul Economic Daily reported, citing unnamed business sources.

It will even increase the plant with extra 4-nanometre chip capability, which might be made beneath foundry contracts – that’s, in line with shoppers’ designs – the paper mentioned.

P3, which began manufacturing of cutting-edge NAND flash reminiscence chips this yr, is the corporate’s largest chip manufacturing facility.

Samsung is planning so as to add no less than 10 excessive ultraviolet machines subsequent yr, the newspaper mentioned.
Samsung declined to touch upon the report.

In October it mentioned it was not contemplating deliberately chopping chip manufacturing, defying the broader business’s tendency to cut back output to satisfy mid- to long-term demand.

“We plan to stand behind our original infrastructure investment plans,” Han Jin-man, govt vice chairman of reminiscence business at Samsung, mentioned then.

In distinction, reminiscence chip rival Micron Technology Inc mentioned final week it could alter down its investments in fiscal 2023 to between $7 billion and $7.5 billion, in contrast with $12 billion in fiscal 2022. It would even be “significantly reducing capex” plans in fiscal 2024, it mentioned.

Taiwanese chipmaker TSMC in October lower its 2022 annual funding finances by no less than 10% and struck a extra cautious notice than normal on upcoming 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 analysis at Hyundai Motor Securities, mentioned in a consumer notice on Monday.

Stay on prime of technology and startup news that issues. Subscribe to our day by day publication for the newest and must-read tech news, delivered straight to your inbox.