© Reuters. FILE PHOTO: The emblem of Samsung Electronics is seen at its workplace constructing in Seoul, South Korea South Korea, October 11, 2017. REUTERS/Kim Hong-Ji
SEOUL (Reuters) – Samsung Electronics (OTC:) plans to extend chip manufacturing capability at its largest semiconductor plant subsequent 12 months, 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 stated that Samsung (KS:)’s persistence with funding plans will possible assist it take market share in reminiscence chips and assist its share value when demand recovers.
Samsung plans to broaden its P3 manufacturing facility in Pyeongtaek, South Korea, by including 12-inch wafers capability for DRAM reminiscence chips, the Seoul Financial Each day reported, citing unnamed trade sources.
It’s going to additionally broaden the plant with further 4-nanometre chip capability, which might be made below foundry contracts – that’s, in response to purchasers’ designs – the paper stated.
P3, which began manufacturing of cutting-edge NAND flash reminiscence chips this 12 months, is the corporate’s largest chip manufacturing facility.
Samsung is planning so as to add at the least 10 excessive ultraviolet machines subsequent 12 months, the newspaper stated.
Samsung declined to touch upon the report.
In October it stated it was not contemplating deliberately chopping chip manufacturing, defying the broader trade’s tendency to cut back output to fulfill mid- to long-term demand.
“We plan to face behind our unique infrastructure funding plans,” Han Jin-man, govt vp of reminiscence enterprise at Samsung, stated then.
In distinction, reminiscence chip rival Micron Know-how Inc (NASDAQ:) stated final week it might alter down its investments in fiscal 2023 to between $7 billion and $7.5 billion, in contrast with $12 billion in fiscal 2022. It could even be “considerably lowering capex” plans in fiscal 2024, it stated.
Taiwanese chipmaker TSMC in October lower its 2022 annual funding funds by at the least 10% and struck a extra cautious observe than normal on upcoming demand.
“The chip trade downturn will add to the difficulties of No. 2 and beneath chip firms, and have a optimistic affect available on the market management of prime firms akin to Samsung,” Greg Roh, head of analysis at Hyundai Motor Securities, stated in a consumer observe on Monday.
