Samsung Electronics decided a budget of $18 billion. The purpose of this portfolio will be to consolidate its position as an authority in the memory chip market. The company is going to unlock new additions in this area for smoother expansion in the global industry.
Samsung Will Modernize Its South Korean Plants by 2021
Samsung is already the best producer of memory chips and smartphones in the world. Yet the company knows too well that being on top doesn’t assure you longevity, but it has to earn it. As a consequence, the company is going to redirect 20.4tn won or around $17.7 billion to streamline its chip plants in South Korea. The deadline for this grand project is the year of 2021.
Samsung’s factory in Pyeongtaek located 44 miles south of Seoul has just started being operational. The company invested around $13 billion and two years in creating the biggest plant in the world from scratch. The chip plant NAND in Xian, China is also going to be refurbished so as to better accommodate the high demand for chip tech in storage products.
Over the past years, Samsung’s production has been undermined by a series of low-tier rivals in China. These small competitors are offering challenging prices that are hard to assimilate when it comes to a giant factory. At the other end, Apple menaces the high-tier sector of the company with its unbeatable iPhone.
Samsung’s Presence in the Memory Chip Market Assured a Prosperous Quarter Despite Smartphone Issues
On top of an extremely aggressive smartphone market, the company suffered a serious setback last year. This was when a major recall of Galaxy Note 7 was organized as their batteries started to explode, injuring their owners. Nonetheless, the firm managed to pull off a spectacular financial year mainly thanks to its dominant presence in the memory chip market.
Samsung reported the most fruitful quarterly net profit for the past three years in April. Its production covered 40% of global demand for memory chips. As a consequence, the company intends to secure even more sales in this sector through its new $18 billion investment in its plants.
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