According to Reuters, Samsung Electronics has begun to build a new domestic NAND flash memory chip production line to bet on the future demand for personal computers and servers because of the new crown virus More people work from home.
Samsung plans to mass-produce the chip in the second half of next year. The production line is located in Pyeongtaek, South Korea, a two-hour drive from Seoul, the capital of South Korea.
Samsung said that the extra capacity will also help meet the demand for 5G smartphones and other devices, although it has recently been delayed in Europe and other countries due to a health crisis The pace of the country’s deployment of 5G networks.
Samsung did not disclose the specific investment amount. Analysts expect that the investment will range from 7 trillion won (about 5.7 billion US dollars) to 8 trillion won (about 6.5 billion US dollars). According to the Korea Times, it will cost 8.5 trillion won (about 6.9 billion US dollars).
In addition, Samsung will add a second production line at its Xi’an plant in China, which is scheduled to be put into operation in the first half of next year.
The Korean Ministry of Trade announced on Monday that South Korea’s chip exports in May increased from a year earlier due to the demand for servers and personal computers driven by work-at-home trends and online courses. At 7.1%, at the same time, Chinese PC manufacturers resumed production and pushed up chip prices.
DB Financial Investment analyst Eo Kyu-jin said: “Data server customers may continue to invest to enhance their infrastructure to meet the increased online activity of customers Demand.”