Seoul, Dec. 26 (BNA): Samsung Electronics plans to increase chip production capacity at its largest semiconductor plant next year, despite expectations of an economic slowdown.
The move contrasts with cutting back on investment by rival chipmakers amid slumping demand and a glut of chips, according to Reuters.
Analysts said Samsung’s insistence on the investment plans will likely help it gain market share in memory chips and support its share price when demand recovers.
The Seoul Economic Daily reported, citing unnamed industry sources, that Samsung plans to expand its P3 plant in Pyeongtaek, South Korea, by adding 12-inch capacity DRAM memory chips.
It will also expand the plant with an additional 4nm chip capacity, which will be made under foundry contracts – that is, according to customer designs – the paper said.
P3, which began production of high-end NAND flash memory chips this year, is the company’s largest chip manufacturing facility.
Samsung plans to add at least 10 UVA machines next year, the paper said. Samsung declined to comment on the report.
Taiwanese chipmaker TSMC in October cut its annual investment budget for 2022 by at least 10%, and made a more cautious note than usual about upcoming order.
“The downturn in the chip industry will add to the difficulties for No. 2 and below chip companies, and will have a positive impact on the market dominance of large companies such as Samsung,” Greg Roh, head of research at Hyundai Motor Securities, said in a statement. Monday client note.
FAE