Samsung investing $14 billion to build massive semiconductor plant

By Shawn Knight
May 8, 2015
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  1. samsung samsung semiconductor valley intel chip semiconductor chip maker plant production facility

    Samsung has broke ground on a massive chip manufacturing facility dubbed by the locals as Samsung Semiconductor Valley. The company is investing $14.26 billion into the project, the most money ever spent on a single semiconductor production line, according to a report from ET News.

    The facility will be built in Pyeongtaek City Gyeonggi-do, South Korea, with plans to open for business by 2017. Given that date, it’s possible that Samsung will use the facility to turn out 10-nanometer DRAM and other chips for Internet of Things devices.

    Samsung Semiconductor Valley will be roughly the size of 400 soccer fields, or nearly as large as Samsung’s two largest semiconductor plants combined. While no specifics were given, the facility will likely create a wealth of new jobs in the region.

    The South Korean tech giant has struggled as of late with its smartphone business largely due to companies like Huawei and Xiaomi operating at tiny margins. Semiconductor manufacturing, however, isn’t for newcomers and should be immune to such competition. Its creation alone will have others second-guessing their semiconductor strategy.

    At present, Samsung is the second largest semiconductor manufacturer in the world (Intel sits at the top of the mountain). The new facility may or may not change the order but regardless, many of the world’s top electronics and mobile makers rely on Samsung’s semiconductor business to power their devices.

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  2. RustyTech

    RustyTech TS Guru Posts: 814   +382

    Holy cow that's a lot of money!
  3. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,258

    Even refurbishing an existing fab runs to $US4-10bn - you certainly need to keep the wafer production lines fully occupied. Tooling alone is mind boggling. Intel just signed up for 15 litho tools for their upcoming 10nm/7nm/5nm processes at around $US90 million apiece.
  4. Let's hope AMD will get to use this new facility.

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