Comprehensive report by surging journalist Yao Xiaolan
On June 1 local time, Samsung Electronics announced that it would expand its NAND flash chip production capacity in Pyeongtaek, South Korea.
Samsung Electronics has begun building a new domestic NAND flash chip production line to bet on future demand for personal computers and servers, as the new coronavirus has prompted more people to work at home, Reuters reported.
Samsung plans to mass-produce the chip in the second half of next year, a two-hour drive from Seoul, South Korea's capital, in Pingze.
Samsung said the additional capacity would also help meet the demand for 5G smartphones and other devices, although it recently delayed the deployment of 5G networks in Europe and other countries due to the health crisis.
Samsung did not disclose the amount of investment. Analysts expect investment to range from 7 trillion won ($5.7 billion) to 8 trillion won ($6.5 billion). According to the Korean times, it will cost 8.5 trillion won ($6.9 billion).
In addition, Samsung will add a second production line to its Xi'an factory in China, which is scheduled to start production in the first half of next year.
South Korea's chip exports rose 7.1% year-on-year in May, driven by home-based work trends and online courses, while Chinese PC makers resumed production and pushed up chip prices, the Ministry of trade said Monday.
DB Financial Investment analyst Eo Kyu-jin said: