Samsung to Expand Memory Production

Article By : Jonas Klar, EE Times Asia

No memory chip demand let-up in sight, Samsung invests heavily.

Samsung has greenlit the expansion of its Pyeongtak memory chip production line in its native South Korea, Yonhap News reported on Wednesday.

With memory chips in short supply, the South Korean semiconductor giant is set to invest approximately $27 billion USD in its DRAM and NAND business. The Pyeongtak memory production facility opened its gates in July 2017, with the current production line set to operate at 70 percent capacity as a result this year’s scheduled investments. “The investment is aimed at better preparing for future market demand. Any details related to production will be determined after taking market situations into account,” Samsung commented in an email to Reuters.

News of the company’s plans to expand its memory business comes after a strong 2017 which saw the company make a record $14 billion profit driven primarily by its component business. In addition to investments in the existing facility, a second Pyeongtak production facility is also being planned. Exact ground breaking dates have not been announced, but mass production of chips in Pyeongtak’s second production unit could be set for 2020.

In the meantime, DRAM and NAND flash memory prices are set to increase further during 2018 due to strong market demand, according to Gartner.