Samsung to invest $18.6 billion to stay ahead of competition in chips and displays
Samsung invests more than $10 billion annually in its chip-making departments on regular basis. The company's memory chips are expected to yield record profits this year, so further investments in the field certainly make a lot of sense.
According to Reuters, this move could also reassure investors that Samsung is still fully capable of making big moves without its de facto leader, Vice Chairman Jay Y. Lee, who's currently on trial for bribing the former South Korean president – Park Guen-hye.
According to Park, the Korean giant also needs to show some more initiative at home, after announcing it will build a $380 million plant in the US.
Samsung also said it's planning to add a production line to its NAND plant in Xi'an, China. However, no investment amount or time frame has been set.
Today, Samsung also announced that its screen-making arm, Samsung Display, will invest around $1 trillion won ($870.3 million) on a new OLED display plant in South Korea. The company currently holds over 90% of the market share for OLED displays, and it's expected to drastically increase its production to meet the demand for this type of panels.
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