Despite predictions of an economic slowdown, Samsung Electronics intends to increase chip production capacity at its largest semiconductor plant next year, according to a South Korean newspaper late on Sunday.
The action contrasts with rival chipmakers' reduction in investment due to a decline in demand and an excess of chips.
The persistence of Samsung's investment plans, according to analysts, will probably help it gain market share in memory chips and support its share price when demand picks up.
According to the Seoul Economic Daily, which cited unnamed business sources, Samsung intends to increase the capacity of its P3 factory in Pyeongtaek, South Korea, by adding 12-inch wafers for DRAM memory chips.
According to the paper, it will also increase the plant's capacity for 4-nanometer chips, which will be produced under foundry contracts, that is, in accordance with clients' designs.
The company's largest chip manufacturing facility is P3, which this year began producing cutting-edge NAND flash memory chips.
Next year, Samsung intends to increase its inventory by at least 10, according to the newspaper.
Samsung made no response to the report.
It stated in October that it was not thinking about purposefully reducing chip production, defying the general industry trend of reducing output to meet medium- to long-term demand.
"We plan to stand behind our original infrastructure investment plans," Han Jin-man, executive vice president of memory business at Samsung, said then.
In contrast, memory chip rival Micron Technology Inc. announced last week that it would reduce its investments in fiscal 2023 from $12 billion to between $7 billion and $7.5 billion. Additionally, it would "significantly reduce capex" in fiscal 2024, according to plans.
Taiwanese chipmaker TSMC expressed greater caution than usual about upcoming demand in October by reducing its annual investment budget for 2022 by at least 10%.
"The chip industry downturn will add to the difficulties of No. 2 and below chip companies, and have a positive impact on the market control of top companies such as Samsung," Greg Roh, head of research at Hyundai Motor Securities, said in a client note on Monday.
(Source:www.cnbctv18.com)
The action contrasts with rival chipmakers' reduction in investment due to a decline in demand and an excess of chips.
The persistence of Samsung's investment plans, according to analysts, will probably help it gain market share in memory chips and support its share price when demand picks up.
According to the Seoul Economic Daily, which cited unnamed business sources, Samsung intends to increase the capacity of its P3 factory in Pyeongtaek, South Korea, by adding 12-inch wafers for DRAM memory chips.
According to the paper, it will also increase the plant's capacity for 4-nanometer chips, which will be produced under foundry contracts, that is, in accordance with clients' designs.
The company's largest chip manufacturing facility is P3, which this year began producing cutting-edge NAND flash memory chips.
Next year, Samsung intends to increase its inventory by at least 10, according to the newspaper.
Samsung made no response to the report.
It stated in October that it was not thinking about purposefully reducing chip production, defying the general industry trend of reducing output to meet medium- to long-term demand.
"We plan to stand behind our original infrastructure investment plans," Han Jin-man, executive vice president of memory business at Samsung, said then.
In contrast, memory chip rival Micron Technology Inc. announced last week that it would reduce its investments in fiscal 2023 from $12 billion to between $7 billion and $7.5 billion. Additionally, it would "significantly reduce capex" in fiscal 2024, according to plans.
Taiwanese chipmaker TSMC expressed greater caution than usual about upcoming demand in October by reducing its annual investment budget for 2022 by at least 10%.
"The chip industry downturn will add to the difficulties of No. 2 and below chip companies, and have a positive impact on the market control of top companies such as Samsung," Greg Roh, head of research at Hyundai Motor Securities, said in a client note on Monday.
(Source:www.cnbctv18.com)
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