Samsung to increase chip production in 2023
2022.12.26 01:00
Samsung to increase chip production in 2023
Budrigannews.com – (OTC:) Samsung Electronics despite economic slowdown predictions, a South Korean newspaper reported late on Sunday that the company intends to increase chip production capacity at its largest semiconductor plant next year.
In contrast, rival chipmakers have reduced investment in response to decreasing demand and a glut of chips.
According to analysts, Samsung (KS:) It is likely that if it continues to adhere to its investment plans, it will gain market share in memory chips and support its share price when demand returns.
The Seoul Economic Daily, citing unidentified industry sources, reported that 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 4-nanometer chip capacity under foundry contracts, or in accordance with client designs.
The company’s largest chip manufacturing facility is P3, which began producing cutting-edge NAND flash memory chips this year.
According to the newspaper, Samsung intends to add at least ten extreme ultraviolet machines in the coming year.
Samsung withdrew its response to the report.
It defied the general industry’s tendency to reduce production to meet mid- to long-term demand when it stated in October that it was not considering cutting chip production intentionally.
Han Jin-man, Samsung’s executive vice president of memory business at the time, stated, “We plan to stand behind our original infrastructure investment plans.”
Interestingly, memory chip rival Micron Innovation Inc (NASDAQ:) said last week that it would cut its investments in fiscal 2023 from $12 billion in fiscal 2022 to $7 billion to $7.5 billion. It also stated that it would be “significantly reducing capex” plans for fiscal 2024.
Taiwanese chipmaker TSMC in October cut its 2022 yearly venture spending plan by something like 10% and sent out a more wary vibe than expected on impending interest.
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“The difficulties of No. 1 will be made worse by the downturn in the chip industry.” In a client note on Monday, Greg Roh, head of research at Hyundai Motor Securities, stated that “they have a positive impact on the market control of top companies such as Samsung.”
