Samsung might establish second semiconductor production line at Pyeongtaek facility

We’ve heard reports about a significant capacity increase at Samsung’s Pyeongtaek fab since last year as the company was believed to have allocated $14 billion for that purpose. According to a new report out of South Korea, Samsung is now thinking about setting up a second semiconductor chip production line near Seoul as it anticipates rising demand for semiconductors.

The report claims that Samsung executives are in talks with officials in Pyeongtaek about setting up a new chip production line in the city that lies some 70 kilometers outside Seoul. It also adds that no specific size or timing of investment has been determined as yet.

Samsung yet to make final decision

Samsung started mass production at its new semiconductor fabrication line in Pyeongtaek in July last year. It was initially focused on mass production of Samsung’s fourth-generation V-NAND memory product. Samsung started constructing the new facility in May 2015 and was able to get the fab line up and running in just over two years, the company likes to point out that this is the largest single fab in the industry.

The company said last year that it’s going to further improve its manufacturing capabilities by investing close to $30 billion in its global production facilities. It certainly has the money to invest in these endeavors and with its semiconductor division driving record profits for the company, it won’t be surprising if Samsung does decide to establish a second line at the Pyeongtaek facility.

A Samsung Electronics executive quoted in the report says that while the company has reviewed the possibility of adding another line, no final decision has been made yet. If and when the decision to establish a second line is made, it would be the company’s first major investment ever since Samsung’s heir apparent Lee Jae-yong was released from prison.


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