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South Korea's Samsung Electronics Plans to Expand Chip Production Capacity Next Year

Update time : 2023-01-05 11:19:21

South Korea's Samsung Electronics plans to expand the production capacity of its largest semiconductor plant next year, despite the uncertainty of the development prospects of the relevant industry, according to South Korean media reports on the 25th.

Citing anonymous sources within the industry, the Korea Economic News reported that Samsung Electronics plans to expand the production capacity of its P3 plant in Pyeongtaek, South Korea. The plant will add 12-inch wafer capacity for DRAM memory chips.
According to the report, the P3 plant is Samsung Electronics' largest chip manufacturing plant, which will add 4-nanometer chip capacity under a foundry contract; Samsung Electronics plans to purchase at least 10 new extreme ultraviolet lithography machines next year.
Citing analysts, Reuters reported that Samsung Electronics continues to invest in its chip business, which may help it fight for market share in memory chips when demand picks up, as well as boost the company's share price.
According to the Korea Times, as of the second quarter of this year, Samsung Electronics accounted for 43.5% of the DRAM chip market share, followed by South Korea's SK Hynix with a 27.4% share, the U.S. Micron Technology Inc. accounted for about 24.5%.
Unlike Samsung Electronics Co. plans to continue to invest in the chip business, Micron Technology Inc. 21 announced its intention to lay off 10% of its workforce in response to softening demand for consumer electronics and chips. SK Hynix executives said in a second-quarter earnings meeting that its capital expenditures will remain flexible in response to market conditions.
Although Samsung Electronics is busy with the long-term layout, but the short-term sales of memory chips is still not optimistic. According to Goldman Sachs Group recently forecast, Samsung Electronics semiconductor business fourth-quarter operating profit of about 1.5 trillion won, down 83 percent year-on-year.
Samsung Electronics announced in August that it broke ground on a semiconductor research and development center south of the South Korean capital Seoul. The company plans to invest about 20 trillion won in the R&D center by 2028 to boost the company's position in the chip sector.

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