Samsung Plans Major Expansion Next Year despite High Probability of Economic Slowdown

Local South Korean newspaper reported that next year Samsung Electronics plans to increase its chip production capacity at its largest semiconductor plant, despite predictions from economists and analysts for an economic slowdown.

The move contrasts with the cutting of investment by rival chipmakers along with falling demand and oversupply of chips globally.

The analysts said that the persistence of Samsung with investment plans will likely help the market share in memory chips and support the share price when demand recovers. 

The company plans to focus on expanding the P3 factory in Pyeongtaek by adding 12-inch wafers capacity for DRAM memory chips and will also expand the plant with additional 4-nanometer chip capacity, which will be made under foundry contracts. 

In October 2022, Taiwanese chipmaker TSMC cut its annual investment budget at least 10% and warned the market of upcoming demand.