Samsung invests $27 billion into a second memory plant in Pyeongtaek

Samsung invests $27 billion into a second memory plant in Pyeongtaek

Samsung invests $27 billion into a second memory plant in Pyeongtaek

Samsung Electronics expects the demand for memory chips to continue to grow over the next few years, prompting a pre-emptive investment of $27.7 billion in a second semiconductor plant in Pyeongtaek. 

This facility is code-named the “P2-Project”, which is set to be completed before the second half of 2019. At this time it is unknown what will be created within this facility, though DRAM and NAND production are likely candidates. Production allocation is expected closer to the facility’s completion date, after more accurate projections on product demand can be made. The construction of this new facility is designed to meet future demand for Samsung’s chip designs. 

Sadly, this facility is not likely to enter mass production until 2020, though the company’s first Pyeongtaek facility is currently ramping up production to help meet today’s demand for NAND. This planned increase in chip production is great news given today’s supply constrained market, though PC builders will be undoubtedly disappointed by how long it will be before this new facility is up and running. 

  

Samsung invests $27 billion into a second memory plant in Pyeongtaek

When combined with the expansion of Samsung’s other facilities it is clear that the company sees demand for DRAM and NAND increasing over the next few years. Hopefully, this increase in chip supply will be able to outpace any increases in demand, as today’s pricing of NAND and DRAM are already excessive. 

The creation of these new facilities is also great news for Samsung’s suppliers, the lesser known creators of the machinery that makes such complex chip designs possible. This investment in new facilities will allow these companies to continue to grow and prosper, which will allow them to continue pressing forward with increasingly accurate machinery. 

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