Samsung to invest $18 billion in memory chip business

Samsung Electronics will invest nearly $18bn in its chip business, the South Korean firm said Tuesday, as it seeks to expand its lead in the global memory chip and smartphone markets.

The world’s top maker of smartphones and memory chips will invest 20.4tn won ($17.7bn) by 2021 to expand and upgrade its chip plants in the South Korean cities of Pyeongtaek and Hwaseong, it said in a statement.

The factory in Pyeongtaek, 70 kms (44 miles) south of Seoul, is the world’s biggest and has recently started production after Samsung Electronics spent 15.6tn won over the past two years to build it.

The company also plans to expand its NAND chip plant in the Chinese city of Xian to meet booming demand for the chips used in high-end storage products, it said.

It did not elaborate on when and how much money it plans to invest there.

In smartphones, Samsung has been increasingly sandwiched by smaller Chinese rivals in the low and mid-end markets, and by Apple’s iPhone in the high-end segment.

It also suffered a blow to its reputation after a humiliating mass recall last year of its Galazy Note 7 smartphone over faulty, exploding batteries.

But the firm managed to post stellar profits partly thanks to the robust chip business, which supplies not only to its own handset unit but also other electronics giants including Apple.

Samsung – which accounted for more than 40% of global memory chip sales in the first quarter of this year – posted in April its biggest quarterly net profit in more than three years.

“Our clients are having difficulty securing enough semiconductor chips due to growing global demand for high-tech gadgets,” it said.

“We plan to actively respond to those demands by making aggressive investments on our production lines at home and abroad,” it said.

Analysts say a global shortage of chips may persist throughout 2017, driving prices higher and benefiting major suppliers such as Samsung and another South Korean chipmaker, SK Hynix.

Average prices for DRAM chips used in PCs and servers, and NAND flash chips used in handsets are expected to jump 53 percent and 28 percent respectively this year, according to market researcher IC Insights.

The announcement also came after newly elected South Korean President Moon Jae-In set tackling rising unemployment as his top priority.

Samsung said its investment would eventually help create as many as 440,000 jobs through 2021, including indirectly, and help bolster Asia’s fourth-largest economy.

The Guardian

Other News

Hanoi approves controlled pilot of two technology projects

Hanoi approves controlled pilot of two technology projects

The two projects involve an intelligent autonomous transportation system developed by Phenikaa-X JSC and a technology for producing mixed rare-earth oxides with a purity of over 95% on a semi-industrial scale developed by the Mining Technology and Construction Consultancy JSC.

Banking industry in AI era: When data becomes competitive advantage

Banking industry in AI era: When data becomes competitive advantage

In just a few years, AI has evolved from an experimental technology into an “assistant” for many banks, supporting everything from customer service, credit approval, and fraud detection to risk management. However, as the technological gap between institutions narrows, a new question is emerging: What will determine banks' competitive advantage in the AI era?

Bac Ninh considers establishing AI centre of excellence

Bac Ninh considers establishing AI centre of excellence

A meeting has been held in Bac Ninh to discuss potential cooperation with Plug and Play in developing the northern province’s innovation ecosystem and establishing an artificial intelligence (AI) centre of excellence, with Standing Vice Chairman of the provincial People’s Committee Mai Son receiving a delegation from the global innovation platform.

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

The project aims to assess the safety, reliability and readiness of autonomous vehicles under real traffic conditions, as well as the effectiveness of autonomous public transport and compatibility with existing systems. Its results will contribute to developing technical standards, operating procedures and management models suited to Hanoi’s traffic conditions.

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

As Vietnam accelerates digital transformation and high-tech development, Singapore’s experience and the engagement of global technology companies demonstrate that human resources preparation must stay ahead of the curve. The ability to filter knowledge, collaborate, innovate and effectively use AI will increasingly become essential to helping workers adapt to a changing labour market and strengthening the competitiveness of Vietnam’s economy in the new era.

Protecting national security amid digital transformation, cyberspace

Protecting national security amid digital transformation, cyberspace

Cybersecurity, information security and data security risks must be identified and addressed early and from afar, with appropriate defensive measures ready to neutralise threats and protect national interests in cyberspace, said Lieutenant General Le Xuan Minh, Director of the Ministry of Public Security’s Department of Cybersecurity and Hi-tech Crime Prevention (A05).

Mekong Delta launches first robotics, AI research institute

Mekong Delta launches first robotics, AI research institute

Dr. Nguyen Van Quang, Rector of Nam Can Tho University, said the university is developing a value chain covering training, research, technology development, testing, technology transfer and commercialisation. The model is designed to link research more closely with practical needs, ensuring that technologies generate products and products create value for society.

Vietnam positioned to harness AI wave, World Bank report says

Vietnam positioned to harness AI wave, World Bank report says

The WB report identifies Vietnam as one of the few economies outside the European Union (EU) to have adopted a comprehensive AI regulatory framework as early as 2025. Vietnam applies a risk-tiered approach similar to that of the EU AI Act, imposing different obligations depending on whether an AI system poses “unacceptable,” “high,” “low” or “minimal” risks. The approach is viewed as a strategic step towards ensuring safe and transparent AI governance.

AI offers both opportunities, challenges for Vietnam's growth

AI offers both opportunities, challenges for Vietnam's growth

Dr. Ho Duc Thang, a full-time member of the National Assembly’s Committee for Cultural and Educational, said productivity is the key to sustaining double-digit economic growth, and AI has greater potential to improve productivity than any previous technology.

Top leader unveils people-centred vision for new development model

Top leader unveils people-centred vision for new development model

Vietnam's growth model, long fueled by low-cost labour, resource extraction, contract manufacturing, expanded investment, and capital accumulation, has run out of road. The country now needs a sweeping reform agenda to shift from extensive growth to a model driven by productivity, knowledge, science and technology, innovation, and digital transformation.