Samsung expands chip production

Despite economic slowdown predictions, Samsung Electronics is said to be planning to increase chip production capacity next year at its largest semiconductor plant, the P3 factory in Pyeongtaek, South Korea. In contrast, other chipmakers, such as TSMC and Micron Technology, have reduced investment in response to a glut of chips and declining demand. 

Samsung expands chip production

The Seoul Economic Daily reports that Samsung will expand the capacity of the P3 factory to accommodate 12-inch wafers for DRAM memory chips and 4-nanometer chips for foundry contracts, which require chips to be produced in accordance with the designs of customers. This year, Samsung's most important chip manufacturing facility, the P3 factory, began producing cutting-edge NAND flash memory chips. In the coming year, the company intends to add at least ten extreme ultraviolet machines.

According to analysts, Samsung's persistence with its investment plans will likely assist the company in gaining market share in memory chips and support the stock's price when demand returns. Contrary to the general tendency of the industry to reduce production to meet mid- to long-term demand, Samsung stated in October that it was not considering cutting chip production intentionally. Han Jin-man, Samsung's executive vice president of memory business, stated, "We intend to stand behind our original infrastructure investment plans."