Samsung Electronics will expand its chip manufacturing capacity at its largest plant in 2023
Despite predictions of an economic slowdown, Samsung Electronics intends to raise chip production capacity at its main semiconductor plant next year, according to a South Korean publication late on Sunday. The action contrasts with rival chipmakers’ reduction in expenditure due to a decline in demand and an excess of chips.
The perseverance of Samsung’s investment plans, according to analysts, will probably help it gain market share in memory chips and boost its share price when demand picks up. According to the Seoul Economic Daily, which cited anonymous 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 publication, 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 plant is P3, which last 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.
It stated in October that it was not thinking about purposefully reducing chip manufacturing, contradicting the general industry trend of reducing output to fulfil medium- to long-term demand.
Han Jin-man, executive vice president of Samsung’s memory unit, stated at the time, “We intend to adhere to our initial infrastructure investment plans.”