Citing work-from-home induced demand Samsung starts construction of new NAND flash memory production line

On Monday, in a statement Samsung Electronics Co Ltd said, the construction for a new domestic production line for NAND flash memory chips has begun following an increase in demand for personal computers and servers since the coronavirus induced lockdowns has boosted the number of people working from home.

Samsung expects the new production line to kick in sometime during the second half of next year.

The new line is being added in its plant in the city of Pyeongtaek, which is around two-hours away from its capital, Seoul.

The boost in capacity will also help meet demand for upcoming 5G smartphones and other devices, said Samsung.

Although Samsung did not mention the amount it will invest in this new production line, according to analysts, it will range between 7 trillion won ($5.70 billion) and 8 trillion won.

Incidentally, Samsung is also expanding its second plant in Xian, China with an additional line, which will go into production in the first half of 2021.

South Korea’s chip exports for May 2020 rose by 7.1% from a year earlier.

According to a statement from South Korea’s trade ministry, the recovery of production by Chinese PC makers have driven up chip prices.

“Data server customers will likely continue to invest in beef up their infrastructure to demand drawn from customers’ increased online activities,” said Eo Kyu-jin, an analyst at DB Financial Investment.

($1 = 1,227.9900 won)

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