Samsung aims to expand chip production at its largest chip manufacturing facility

According to a South Korean newspaper (via MoneyControl), one of the biggest chip producers in the world, Samsung Electronics, aims to expand its semiconductor production at its P3 factory in Pyeongtaek, South Korea. Apparently, the P3 factory in Pyeongtaek is the company's largest chip manufacturing facility.

This move is in contrast with the scaling back of investment by rival chipmakers, economic slowdowns in many regions across the globe, and falling demand. Industry experts believe that Samsung is eyeing to go ahead with the move to expand its chip production to grab a better market share among its rivals and also support its share price once the market recovers.

The expansion plans involve the addition of a 12-inch wafer capacity for DRAM chips. Moreover, Samsung also plans to expand the plant with an additional 4nm chip capacity, which will be built under the foundry contracts, i.e., according to Samsung's clients' designs. Furthermore, the company is also planning to add at least “10 extreme UV machines” in 2023. Samsung hasn't confirmed this information.

Samsung Electonics' competitor, Micron Technology Inc., announced last week that it will adjust down its investments in 2023, from $12 billion in 2022 to $7 billion to $7.5 billion next year. Because of the various macroeconomic factors, the Taiwanese chip giant, TSMC, reduced its annual investments by at least 10% in October 2022.

Sagar Naresh

Business 4nm DRAM Samsung Electronics Samsung Foundry South Korea Taiwan TSMC