Menu
Samsung to invest $14.7 billion in new fab

Samsung to invest $14.7 billion in new fab

Samsung has a significant and growing business in memories and logic chips used in mobile devices and for enterprise computing

Samsung Electronics is investing 15.6 trillion Korean won (US$14.7 billion) in a new chip plant in South Korea to meet growing demand from smartphones, enterprise computing and the emerging 'Internet of Things' market.

Construction of the fab in a 790,000 square meter site in Godeok Industrial Complex in Pyeongtaek will begin during the first half of next year, with operations scheduled to begin sometime during the second half of 2017, Samsung said Monday.

Samsung, which is providing its third-quarter earnings guidance Tuesday, said in July its second-quarter profit fell nearly 20 percent year-on-year as a result of price competition in mid and low-end phones from Chinese manufacturers and sluggish demand in Europe.

The company's revenue at 52 trillion won in the second quarter was down by about 9 percent from the same quarter last year. Samsung also blamed its poor performance in the second quarter on weaker demand worldwide for tablets.

Its semiconductor business, which includes memory and logic chips, had revenue of close to 9.8 trillion won in the second quarter, up by nearly 13 percent from the same quarter last year.

A Samsung spokeswoman said a decision has not been taken yet on what type of chips would be made at the new fab and the manufacturing process. The company said in July it was on track to roll out 14-nanometer manufacturing process in volume by the end of this year.

The company also forecast strong demand for DRAMs and NAND flash storage in the second half of this year coming from mobile phones and high adoption of SSDs (solid-state drives) by enterprises and PC makers. The company has wafer fabrication facilities in Giheung and Hwaseong near Seoul and in Austin, Texas. It also does integrated circuit assembly and testing in Onyang in South Korea and Suzhou, China.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesconsumer electronicsComponentsSamsung Electronics

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments