Samsung plans $18.6 b capex to widen chip lead

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The company held an internal ceremony to mark the start of the mass production with the attendance of around 100 executives.

Samsung added that it is considering adding more semiconductor production lines in its factory in Xi'an, China.

"Pyeongtaek Semiconductor Complex is a new challenge for Samsung Electronics' future in semiconductor business." said Vice-Chairman Kwon Oh-hyun.

Samsung has announced that it plans to spend around $18.6 billion to build and upgrade different production facilities that manufacture NAND memory chips. According to Samsung Electronics on Tuesday, the fab would be turning out 3D VNAND flash memory of 64-layer die in a capacity of 256-Gb (gigabit per second) to meet consumer demand for superfast and super-performing storage to power mobile devices and PCs with a goal to make the version its mainstream along with 48-layer flash by the end of the year.

Samsung said that it aims to secure competitiveness in the components sector by promoting large investments in its semiconductor and display production lines while at the same time contribute to creating jobs in the country and developing overall IT industry.

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In a company statement issued Tuesday, Samsung announced that by 2021 investments in its Pyeongtaek plant-which has already seen 15.6 trillion won ($13.5 billion) of spending-would rise to 30 trillion won ($26 billion). The manufacturer laid out plans in May to invest roughly 10 trillion won at a plant in the Chinese city of Xi'an and recently said it would put $1.5 billion into a system chip factory in the US state of Texas.

To expand the giant's display division, Samsung Display is reviewing plans to establish a new organic light emitting diode (OLED) panel factory in Asan, South Chungcheong by 2018.

The Samsung claim that these investments will create almost half a million new jobs.

Some analysts said Samsung's production technologies are at least a year ahead of rivals such as Toshiba and SK Hynix. It is heard that Samsung is now discussing with South Korean Government and Chinese Government in order to construct additional line in Xi'an. Samsung's first semiconductor line in Xi'an, which was completed in 2014, is now in full operation.

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