Daily Management Review

Samsung invests $ 18.6 billion in South Korea


07/04/2017


Samsung Electronics announced its intention to invest more than 21.4 trillion won ($ 18.6 billion) in the development and expansion of its production facilities in South Korea by 2021.



Nyusen
Nyusen
The company explained the desire to expand the production line by the overall growth in the world market demand for microchips. Samsung said that by 2021 it intends to spend 14.4 trillion won ($ 12.6 billion) to increase capacity of its fourth-generation V-NAND flash memory collection plant in the city of Pyeongtaek. Construction of the plant began in May 2015, now it is the largest in the industry.

Samsung also plans to send 6 trillion won ($ 5.26 billion) to its cluster to develop memory chips in the city of Hwaseong. In addition, the company is exploring the possibility of building a new plant for OLED technology in South Korea by 2018. Almost 1 trillion won ($ 0.88 billion) will be spent for these purposes. 

In addition, the company is considering a possibility of adding a semiconductors production line at its Chinese plant in Xian. The first line was built in 2014 and is now operating at full capacity, the company explained.

With new investments, Samsung expects to strengthen its global production network and accelerate the overall development of the IT industry. Samsung emphasizes that the latest trends in the industry - the development of the Internet of things, artificial intelligence, big data, automotive technologies - have sharply increased the demand for new high-tech products. Industry sources and analysts said that the lack of NAND chips is now more acute than ever because of the increased use of high-quality data storage systems, data centers and virtual reality systems.

In terms of the memory technology development, Samsung is ahead of its competitors, namely, Toshiba and SK Hynix. Each year, Samsung invests more than $ 10 billion in semiconductor business, which will soon allow the company to become a market leader.

Experts believe that growing production capacity in the flash memory market can lead to too large supplies of products in early 2018. However, the price crisis is unlikely to happen since smart phone manufacturers prefer to purchase more capacious drives.

According to preliminary data of Nomura analysts in April-June of 2017, sales of semiconductor products brought $ 15.1 billion to Samsung, while the same figure for Intel was $ 14.4 billion. It is expected that this year Samsung's semiconductor revenue will reach $ 63.6 billion, while Intel will finish the year with a result of $ 60.5 billion.

source: theguardian.com






Science & Technology

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

Based On One Photo, Research Shows A.I. Can Detect The Sexual Orientation Of A Person

Cyber Crime Risks Are Substantial, Systemic, Says SEC Chief

Tech Titans, Amazon & Microsoft, Partner To Integrate Their Respective A.I. ‘Voice Assistants’

SpaceX Selects Technical University Team’s Hyperloop As The Winner Of The ‘Fast Pod’

Market of autonomous cars will accelerate by 2025

AHA Customers In Iceland Enjoy The First ‘Drone Delivery Service’ In The World

World Politics

World & Politics

Hurricane Maria could not extinguish the love for her pets and other animals for this Puerto Rican couple

Strong 3.4 magnitude earthquake detected coming from North Korea’s nuclear test site

Even As Kim And Trump Trade Threats, South Korea Approves $8 Million Aid For The North

From October 1 Uber is banned in London

Concerns about the far-right party are growing in Germany

Fight for clean air: 7 countries against internal combustion engines

Japan, India Agree To Deepen Defence With China In Mind

Myanmar's Rohingya Crisis May Be Taken Advantage Of By Terror Groups