Samsung to invest $18.6 billion to stay ahead of competition in chips and displays

Samsung to invest $18.6 billion to stay ahead of competition in chips and displays

Samsung Electronics today announced that it will invest $18.6 billion in South Korea, in order to extend its lead in the memory chip and smartphone display markets. The investment should create nearly half a million jobs in Samsung's home country, according to the tech behemoth.

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.

Another big factor for Samsung to invest at home could be the fact that South Korea's new president, Moon Jae-in, has repeatedly called for big companies to invest domestically, in order to create more jobs in the country. Samsung's latest investment is expected to create 440,000 jobs by 2021.

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.

Park Ju-gun, head of corporate analysis firm CEO Score, commented for Reuters, saying that “Samsung is being more aggressive in domestic investments because of the current [political] climate.”

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.

Both of these moves make a lot of sense, considering the current industry trends. Memory chips are in high demand right now, as more and more high-end mobile devices are produced. Chip makers have been struggling to keep up, and at the current time supply is somewhat limited. Some industry experts predict that will change in the beginning of 2018, but it will not affect chip prices.

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.

via Reuters

FEATURED VIDEO

14 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

Samsung doing what it does best. Always taking calculated risks and investing big on R&D to keep the lead in tech. That's why Samsung continues to receive awards for the best display in the market... For three years running now.

3. Hallyu

Posts: 790; Member since: Jul 21, 2015

Even JDI which consists of big Japanese companies still can't compete with Samsung's display department. Oh wait those companies are stoned-age huts, by the way. LOL

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

Not sure why you had to specifically mention Japan's JDI, though... As they aren't the only Display OEMs in the world: There ere many others: Emerging Display Technologies Corp from Taiwan. Arçelik from Turkey Czech Republic's OCZ Vrchlabí Logic Technologies Ltd from the United States. CCE from Brazil and Fabelec from Mexico. So, Japan Display Industry isn't the only which can't complete with Samsung Display.

12. SayMobile

Posts: 152; Member since: Jan 29, 2014

this is one company who really wants to do and change something , unlike some who just want to sit on the pile of cash stock living on the past glory

2. Hallyu

Posts: 790; Member since: Jul 21, 2015

That's my boy! Innovation and customers service are Samsung's top priority. We gonna see haters meltdown by this article. LOL

4. Plasticsh1t

Posts: 3088; Member since: Sep 01, 2014

The "meltdown" is pretty obvious with your comment.

7. ahmuzencab

Posts: 192; Member since: May 12, 2017

If customer service was a top priority they’d have stores everywhere instead of me having to wait 1-2 weeks for my phone to be serviced :( Actual stores. Not rinky dink kiosks with halfwit hires.

6. you_sukk_it

Posts: 219; Member since: Apr 11, 2017

I hope they push past qualcomm. I hate that company.

9. AmashAziz

Posts: 2869; Member since: Jun 30, 2014

While you still use qualcomm's processors in your phones. Or their modems.

8. mudcat626

Posts: 213; Member since: Jul 13, 2016

Lol, the Japanese are the sole manufacturers of the equipment to produce oldest. Of course there will be more manufacturers, now that Apple is moving to oled. Samsung can't produce enough for Apple. Apple will be assisting these companies for the panels they need. So of course Samsung will need more capacity. Samsung also have to compete with TMSC, which, in reading is ahead as a foundry. So Samsung is investing to stay relevant. They make their money on displays and chips, certainly don't make any money on their phones.......

10. Macready

Posts: 1793; Member since: Dec 08, 2014

Hahaha..... $68 billion profit for their mobile division just the past 5 years, 11 billion profit since the beginning of last year, not counting their current quarter. Yeah, sure enough "they don't make money on their phones".... Next cool story please.

11. Khyron

Posts: 397; Member since: Sep 28, 2015

next big thing to come flexible display where Samsung is miles ahead from competition

13. alexiboat

Posts: 14; Member since: Nov 13, 2016

I like how Samsung is leading in this fields. I can't use their phones cos of android os with that ui

14. omnitech

Posts: 1131; Member since: Sep 28, 2016

Eh, a little overkill no Samsung? I mean I still haven't seen a display as nice as the GS6 from a non Samsung phone yet. Don't think this is really necessary unless you are going all out on flexible and foldable displays. The Note 9 or 10 folding out into a tablet for Note taking?

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.