Samsung to invest the eye-watering $14 billion in a new chip foundry

Samsung to invest the eye-watering $14 billion in a new chip foundry
Samsung's audit sheet already revealed the staggering amount of R&D spending - $13.8 billion - that the company invested in memory and processing chips, screen technology, and more last year. This is roughly three times Apple's research spending, but the company is not done, it seems. Samsung Electronics announced today that it will pour in the princely $14 billion in a new chip factory, which will be coming online as soon as the the first half of 2017.

The plant will be built in the city of Pyeongtaek, south of Seoul, so that Samsung can keep a closer eye on production. The silicon-churning department has already become a significant money machine for the world's second-biggest chip maker by revenue, but with the new $14 billion plant Samsung is apparently setting even loftier goals for itself there. Local media is reporting that the exponential growth in the chip-making business is bet on to offset the inevitable slowdown in the maturing smartphone market.

As per Samsung's press release: "The Pyeongtaek semiconductor plant will play a central role in solidifying leadership in the mobile and server markets, which have shown rapid growth in demand recently, and securing share in the next-generation internet of things market." The factory is reported to focus predominantly on DRAM memory in the new factory, with mobile chipsets picking up the slack when demand requires. 

Samsung has reportedly already scored production the eventual Apple A9 processor that will go into the next iPhone, but these are mainly produced in the company's Texan foundry, while the new chip factory in the home turf will likely be partially dedicated to chipsets for the next phones in the Galaxy S flagship franchise of Samsung.

source: Reuters

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29 Comments

1. AnTuTu

Posts: 1612; Member since: Oct 14, 2012

Holly F :O Go hard Sammy :)

3. f35hunter

Posts: 240; Member since: Dec 12, 2013

Samsung wants to take on Qualcomm and TSMC

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

They already beat TSMC and since Qualcomm is now going to use Samsung to make their chips, Samsung has them beaten too. See Samsung actually spends money. If Samsung Electronics wasn't making money, they wouldn't have money to build a $14B factory for production.

10. Pinocchio

Posts: 141; Member since: Apr 14, 2015

A real innovative company!

18. InspectorGadget80 unregistered

Truly a innovative company. You spend money on R N D not buying up your competition or patent b.s. products that already exist

25. ShaikhJGI

Posts: 359; Member since: Jan 10, 2014

Awesome post buddy +1000.

19. guest

Posts: 372; Member since: Jun 13, 2012

Uh you guys realize this is to increase DRAM capacity right? Much different than producing SoC's. The only companies this will be hurting is MU and Hynex. You will more likely see an increase in the amount of RAM in your phone instead of a node shrink in the AP.

2. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

So cool Sammy...

4. BLUEBLASTER

Posts: 930; Member since: Feb 23, 2014

One day I wish for some company to spend that amount into Battery Research.

7. brrunopt

Posts: 742; Member since: Aug 15, 2013

Just trowing money at things dont make them happen.. We are still trying to figure out how to make batteries with higher density ...

5. Taters

Posts: 6474; Member since: Jan 28, 2013

They should factor these costs into the GS6 and GS7 and probably the GS8. And for the iPhone 6s they should factor in them charging you for 10 year old software with a new skin while the rest goes into their pockets. I still don't get how the moronic ifans and Samsung haters don't see this when they say Samsung is just as greedy as Apple. I mean it's common sense that a 4th grader should be able to figure out. Yes Samsung is ultimately a business and is out there to make money but they sure put back a heck of a lot more than Apple does into the industry. Apple just puts everything in their pockets,

16. hound.master

Posts: 1044; Member since: Feb 27, 2015

Yeah If you even look to the history of this company Apple was always a vampire a money vampire that sucks the money out of peoples pocket about Samsung I don't agree with their pricing too specially for S6 but atleast they make you feel that it worse it by giving you sth unique but what about iPhone with those outdated hardware they can obviously put a lot better things in iPhone.

26. ShaikhJGI

Posts: 359; Member since: Jan 10, 2014

Yes completly Agreed. What the heck Apple is doing with that whopping $185 billion cash pile up? I don't understand why Apple can't invest it somewhere & bring new advanced technologies to the market.?? Why Apple. Apple can start atleast 5 Big new companies with that amount of Cash pile on. Sorry Apple but you are too greedy to be honest :(

29. Ahovking

Posts: 711; Member since: Feb 03, 2015

Its a war chest, that can be used to quickly out bid a compeditor or to carry the compainy though rough times, Apple almost went backrupt during the 90s, and it proberly has some religous thing now where its building a huge war chest so if anything happens it can still operate at a lost for years...its very smart move. Also Compare past Galexy phones to eachother and you'll find that the new price of the S6 and S6 egde is unjustified and a compete rip off just like the iphone (if you think a cured glass is justifiin enough than your a blind). Personly if you are stupid enough to buy a Iphone or a Samsung phone then you dont deserve that money.

27. Trex95

Posts: 2381; Member since: Mar 03, 2013

Samsung the biggest Apple fan for your info.

6. vuyonc

Posts: 1090; Member since: Feb 24, 2014

Everyone will leapfrog over 20nm planar on to some 14nm FinFET node by 2016 I can't wait :D

8. arch_angel

Posts: 1651; Member since: Feb 20, 2015

The money Samsung puts in to R&D is amazing and it shows how much in pays off in their products its the reason that Samsung's phones will all ways be the best. You can say all you want about apple's iPhone and its incredible success but they have never been and never will be the best phone, at least not if apple continues to spend so little on R&D and i don't see them changing there greedy ways anytime soon.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

They will when iPhone sales start dropping. As long as idiots are willing to pay $650 for 2 year old hardware, then there is no reason to sped more in R&D.

28. ShaikhJGI

Posts: 359; Member since: Jan 10, 2014

$650? Average iPhone price across the world considering all storage variants stands at $785 isn't thats a shame? iSheeps please wake up guys, come out of that status symbol. Let Apple sales drop & when they comeback with really cool & advanced tech "of its time", we all will buy it together. I swear.

9. GazWho

Posts: 7; Member since: Apr 09, 2015

WHY NOT JUST BUY ARM OR NVIDIA MOBILE CHIP BUSINESS

13. Kakarotto

Posts: 255; Member since: Dec 07, 2010

Why should they do that if they can make better chips on their own?

14. ph00ny

Posts: 2031; Member since: May 26, 2011

There are rumors of possibility of samsung acquiring AMD

15. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Since 2009

24. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because they aren't Apple. Apple has to by others technology because they are incapable of creating anything. Samsung actually makes stuff so no need to buy...right?

11. pendragon0202

Posts: 164; Member since: Feb 23, 2015

This new Pyeongtaek plant will go operational in 2017. It will be one of the largest semiconductor plant in the world being larger than the existing two plants - Suwon and Yong-In combined. According to ETnews in Korea, this new plant will most likely employee 10 nm FinFET technology.

17. hound.master

Posts: 1044; Member since: Feb 27, 2015

I'm sure by 2017 many things will change. Chances are NVIDIA and Intel make better chipsets by that time.

12. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Finally competition to Qualcomm in few years!!!

20. Topcat488

Posts: 1415; Member since: Sep 29, 2012

This is why "I" support Samsung... Samsung supports its home workers! Unlike "Apple" who move almost ALL its labor force out of the country i only support them because "ihave" to. Samsung creates more factory iphone jobs in America than Apple, and it builds factories in its OWN Country, as much as possible. O.o

22. pendragon0202

Posts: 164; Member since: Feb 23, 2015

True... Most of Exynos chips are built at the plant in Austin, Texas.

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