Samsung steps up in chip production despite tough economic conditions

News from the semiconductor industry keeps coming. According to reports, South Korean technology giant Samsung Electronics aims to increase production at its homeland facility. The industry is going through a period in which new investments are either stopped or reduced, but it seems that Samsung intends to continue its investments even then.

Samsung continues its investments

Samsung’s largest manufacturing facility in Pyeongtaek, South Korea, the P3, will benefit from the company’s investments and increase chip production at this facility. However, this investment move by Samsung is a bit interesting because the demands in the semiconductor market continue to decline and the economic recession has not lost its effect yet. On the other hand, according to experts, with this move, Samsung will have a strong chip production that will both increase its market share and support the share price when the industry improves.

Samsung’s plans to ramp up production include adding 12-inch wafers for DRAM chips to the manufacturing process. In addition, Samsung will increase its 4nm chip manufacturing capacity under foundry contracts, i.e. for the production of customer designs. In addition, investments will be made in 2023 to renew the technology in the existing facility.

Samsung Electronics rival Micron announced last week that it will reduce its investments. According to this statement, it is stated that Micron will invest 7-7.5 billion dollars in 2023. The firm had invested $12 billion in 2022. On the other hand, TSMC, which has 53 percent of the semiconductor market, will reduce its investments by at least 10 percent due to macroeconomic factors.