Samsung will pump $10 billion in its semiconductor business this year

samsung profit misses estimates on phone output, chip prices

General

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Samsung's semiconductor business has been showing stellar performance which is why it's not surprising to see that the company is going to invest more into it. Unprecedented demand has contributed to the growth of the semiconductor business so much so that it's the best performing division at Samsung, and the company now plans to pump in as much as $10 billion into it in 2015.

Senior vice president of Samsung's semiconductor division Jeeho Baek said during a conference call with analysts that the company invested around $9.36 billion in this division last year and that it plans to “maintain similar volume this year.” In 2015 Samsung will be increasing its production capacity for memory chips and will add another production line at its facility in Hwaseong to produce DRAMs, it expects to have the new production line up and running by the end of this year. Samsung is also going to start construction on a new plant in Pyeongtaek next month and it expects production to begin at this facility by 2017.

Recent reports have suggested that Samsung's semiconductor business might see further growth once Qualcomm taps it to produce the Snapdragon 820 on the 14-nm process, even Apple and NVIDIA are reportedly considering using Samsung's 14-nm and 20-nm processes for their next-gen chips.

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Adnan Farooqui - Executive Editor

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First Samsung device: SGH-E900

Adnan Farooqui is a long-term writer at SamMobile. Based in Pakistan, his interests include technology, finance, Swiss watches and Formula 1. His tendency to write long posts betrays his inclination to being a man of few words.