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Samsung expands production in South Korea

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
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


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.