Samsung Eyes Production Ramp At Leading Chip Plant As Rivals Curtail Ambitions

Samsung Eyes Production Ramp At Leading Chip Plant As Rivals Curtail Ambitions
  • Samsung Electronics Co, Ltd SSNLF looks to ramp chip production capacity at its largest semiconductor plant next year, despite forecasts of an economic slowdown.
  • Samsung plans to expand its P3 factory in Pyeongtaek, South Korea, by adding 12-inch wafers capacity for DRAM memory chips, Reuters reports.
  • Samsung will also expand the plant with an additional 4-nm chip capacity made under foundry contracts.
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  • P3, which commenced production of cutting-edge NAND flash memory chips this year, is Samsung's largest chip manufacturing facility.
  • The report further added that Samsung plans to add at least ten extreme ultraviolet machines next year.
  • Rival chipmakers scaled back investments amid falling demand and an abundance of chips.
  • Analysts have said that Samsung's diligence with investment plans will likely help it win market share in memory chips and support its share price on-demand recovery.
  • Memory chip rival Micron Technology Inc MU looked to curtail its investments in FY23 to $7 billion - $7.5 billion versus $12 billion in FY22. It also looked to reduce capex plans in FY24 significantly.
  • In October, Taiwanese chipmaker Taiwan Semiconductor Manufacturing Company Ltd TSM cut its 2022 annual investment budget 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.
  • Price Action: TSM shares traded higher by 0.43% at $75.21 in the premarket on the last check Tuesday.
  • Photo Via Company

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