Samsung expands production in South Korea

Samsung expands production in South Korea

The increase in demand made Samsung expands its production line.

Yesterday, Samsung declared it had started the construction of a domestic line for NAND flash memory chips in South Korea. The move comes after the demand for personal computers and servers increased since more people started working from home due to the pandemic. The chip exports from South Korea increased by 7.1% compared to the same time last year.

By the end of this year, the company wants to mass-produce the chips, and to fulfill the demand for 5G smartphones, regardless of the delays in Europe and several other countries.

Experts say that the investment ranges around $5.7 billion.

Moreover, Samsung plans to expand the Chinese Xi’an plant starting the first half of 2021.

The largest chipmaker in the world faces some competition from TSMC. Earlier this year, the company started a project in the U.S. to build a $12 billion chip factory in Phoenix. After the announcement, the stock price for TSMC went higher by 2.32%.

Samsung stock price gained 0.99% during yesterday’s trading session.

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Sources: reuters.com, markets.businessinsider.com


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