Samsung Electronics revealed that its new South Korean-based chip plant will begin production in the first half of 2017. As smartphone earnings begin to slow, the company hopes that the new plant will provide more growth.
Based out of the city of Pyeongtaek, Samsung plans on investing 15.6 trillion won or $14.4 billion in the factory, which is the largest amount of money Samsung has ever committed to a single facility.
“The Pyeongtaek semiconductor plant will play a central role in solidifying leadership in the mobile and server markets, which have shown rapid growth in demand recently, and securing share in the next-generation internet of things market,” Samsung said in a statement.
It’s obvious that the Korean tech giant has big plans and high hopes for this particular plant, as the company plans on investing yet another 10 trillion won to boost the plant’s capacity. That won’t be an immediate investment, and there was no word on when that is to happen, but we’ll probably hear about it closer to when the plant begins production in 2017.
It’s not clear as to what Samsung’s new plant will be producing, but there are rumors saying that it plans to produce DRAM memory chips. Another division of the plant could be allocated to producing mobile processors, which certainly isn’t too far-fetched of an idea, especially with Samsung’s move away from ARM chips. In the end, the tech giant will likely adapt the plant to market demands at the time of production.
source: Reuters
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