Samsung begins investing in second NAND chip production facility at Pyeongtaek

Eyeing booming demand for chips, especially for servers, Samsung has begun investing in a second production facility at Pyeongtaek; it first chip production line at Pyeongtaek began mass production in July 2017.

On Wednesday, South Korean news agency Yonhap reported, Samsung Electronics Co has begun investing in a second memory plant at its Pyeongtaek production facilities in South Korea.

In 2017 Samsung had stated it plans on investing 14.4 trillion won in a new NAND memory chip facility in Pyeongtaek.

Chipmakers are ramping up their production facilities to meet booming demand for semiconductors.

Samsung declined to comment on the Yonhap report.

“After this year’s scheduled investment into the first Pyeongtaek line is over, it will be operating at more than 70 percent capacity,” wrote Lee Jong-wook, an analyst at Samsung Securities, in a note.

In late January, Samsung posted a record annual profit driven by a so-called memory chip “super-cycle,” in the wake of growing indications and expectations that the demand for semiconductors, including chips used for servers, will remain strong in 2018.

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