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    Samsung denies expanding chip production in the US amid row with Japan

    Business
    By 

    Last updated: July 22nd, 2019 at 10:51 UTC+02:00

    Samsung has denied that it's making additional investments to increase chip production in the United States. Local media reports had suggested that the company was considering this since South Korea's trade row with Japan is threatening its business. Samsung was reportedly thinking about increasing chip production in the United States.

    Samsung already runs a foundry business in Austin, Texas. Reports suggested that the facility could see an expansion. Samsung currently produces chips for corporate customers in Austin. The manufacturing line was established in 1996 and Samsung has invested $17 billion in it so far.

    No new chip plant being set up in the US

    Japan has imposed strict export controls on materials that key South Korean companies like Samsung heavily rely upon. These curbs have impacted Samsung's display and chip production. Samsung is now trying to find alternate suppliers to ensure that it can keep manufacturing the products that account for the bulk of its revenues.

    The reports claimed that Samsung had been thinking about constructing an additional chip plant in the United States. The plan was said to have picked up steam as South Korea and Japan's trade row shows no sign of settling. Some analysts fear that it could become a long-term row between the two Asian economic giants.

    However, company officials said today that no additional investments are being considered in the United States for chip production. Expansion is not ruled out if foundry orders increase but that would be unreleased to the trade row. “But it’s not likely that the US expansion would be a solution to the Japanese export restrictions,” a company official was quoted as saying.

    Via Business United States

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