Samsung Electronics to scale up its chip production capacity by 2023

In contrast to Samsung Electronics, its rival Micron Technology said in a statement that it would scale down its investments in fiscal 2023 to between $7 billion and $7.5 billion, compared with $12 billion in fiscal 2022. While another rival Taiwanese chipmaker TSMC has reduced its 2022 annual investment budget by at least 10%.

Electronic and tech giant Samsung Electronics; despite the forecasts of an economic recession is planning to scale up its chip production capacity by 2023 at its largest semiconductor plant next year; according to media reports. The move of Samsung Electronics is opposite to that of other rival players in the Chip-manufacturing segment such as Micron Technology and TSMC; amid falling demand.

According to market experts; Samsung Electronics’ brave investment plans will support it in securing a market share in memory chips segment and support its share price when demand recovers. Electronic giant plans to increase the capacity of its P3 factory in Pyeongtaek, South Korea, by adding 12-inch wafers capacity for DRAM memory chips, media sources reported. Samsung Electronics will also expand the plant with an additional 4-nanometre chip capacity, which will be made according to clients’ designs sources said. 

It is to be noted that P3, which is producing units for cutting-edge NAND flash memory chips is the company’s largest chip manufacturing facility. In contrast to Samsung Electronics, its rival Micron Technology said in a statement that it would scale down its investments in fiscal 2023 to between $7 billion and $7.5 billion, compared with $12 billion in fiscal 2022. While another rival Taiwanese chipmaker TSMC has reduced 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 on Monday.

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