Samsung to invest $14.7 billion in new fab

Samsung has a significant and growing business in memories and logic chips used in mobile devices and for enterprise computing

Samsung Electronics is investing 15.6 trillion Korean won (US$14.7 billion) in a new chip plant in South Korea to meet growing demand from smartphones, enterprise computing and the emerging 'Internet of Things' market.

Construction of the fab in a 790,000 square meter site in Godeok Industrial Complex in Pyeongtaek will begin during the first half of next year, with operations scheduled to begin sometime during the second half of 2017, Samsung said Monday.

Samsung, which is providing its third-quarter earnings guidance Tuesday, said in July its second-quarter profit fell nearly 20 percent year-on-year as a result of price competition in mid and low-end phones from Chinese manufacturers and sluggish demand in Europe.

The company's revenue at 52 trillion won in the second quarter was down by about 9 percent from the same quarter last year. Samsung also blamed its poor performance in the second quarter on weaker demand worldwide for tablets.

Its semiconductor business, which includes memory and logic chips, had revenue of close to 9.8 trillion won in the second quarter, up by nearly 13 percent from the same quarter last year.

A Samsung spokeswoman said a decision has not been taken yet on what type of chips would be made at the new fab and the manufacturing process. The company said in July it was on track to roll out 14-nanometer manufacturing process in volume by the end of this year.

The company also forecast strong demand for DRAMs and NAND flash storage in the second half of this year coming from mobile phones and high adoption of SSDs (solid-state drives) by enterprises and PC makers. The company has wafer fabrication facilities in Giheung and Hwaseong near Seoul and in Austin, Texas. It also does integrated circuit assembly and testing in Onyang in South Korea and Suzhou, China.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags consumer electronicsSamsung ElectronicssmartphonesComponents

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?