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Samsung Invests Record $40.2 Billion in Chip Production Facilities, Focuses on Memory Chip Despite Industry Slump

2023-03-09 17:19:58Mr.Ming
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Samsung Invests Record $40.2 Billion in Chip Production Facilities, Focuses on Memory Chip Despite Industry Slump

Samsung Electronics announced in its latest financial report that it invested a record-breaking total of 53 trillion Korean won (approximately 40.2 billion US dollars) in facilities last year, with over 90% of the investment concentrated in its chip department. This represents a 10% increase in facility investment compared to the previous year, and the majority of the investment, 47 trillion 8717 billion won (about 36.3 billion US dollars), was spent on expanding the production facilities for chips.

According to analysts, Samsung's significant investment in storage chip production, such as investing in the third and fourth production lines at its Pyeongtaek plant, is the main reason for the increase in facility investment. Despite the downturn in the storage chip industry, 39% of Samsung's semiconductor facility investment is still focused on storage chips, indicating that Samsung is not afraid to spend more money to counteract economic headwinds.

In February, Samsung Display borrowed 20 trillion Korean won (approximately 15 billion US dollars) to maintain its semiconductor investment at last year's level. Moreover, Samsung Electronics plans to significantly increase its R&D investment in 2022, with a total expenditure of 25 trillion Korean won (about 18.9 billion US dollars), a 10% increase from last year.

Furthermore, the American market has rapidly become Samsung's largest sales source, with sales increasing by 13% to 66 trillion Korean won (about 49.9 billion US dollars) last year, accounting for 31.1% of total sales, up 1.9 percentage points from the previous year. On the other hand, Samsung's sales in mainland China declined by 8.4% to 55 trillion Korean won (about 41.4 billion US dollars), with its overall market share shrinking from 29.9% to 25.8%.

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