Why it matters: The memory market has been steadily declining in terms of price and demand, but Samsung is still going all-in on finishing work on EUV (Extreme Ultra Violet) lines at its Hwaseong factory in South Korea. Samsung has doubled its investment on a contract related to finishing work on that line, putting those record profits made in the last couple years to good use.
Samsung is preparing to double its previous investment in a contract related to its new EUV lines at the company's Hwaseong facilities. Samsung announced construction plans for Hwaseong in 2017, and broke ground in 2018 with completion scheduled for 2020. According to Reuters, the contract relates to "finishing work on the line."
Samsung added 739 billion won to the original 723 billion won contract, signed back in September 2018, bringing its total value to around $1.29 billion. The work for this particular line is expected to be completed by April 2020. Samsung began investing in its Hwaseong factory during the burgeoning demand for memory, which saw memory prices driven out of reach for many consumers. However, the memory market is a bit different these days.
Samsung is set to be dethroned by Intel as the world's largest chip maker, and Samsung issued an unprecedented warning regarding their first quarter earnings, all amidst the declining memory market.
Still, Samsung sits atop the current memory triumvirate, so resting on its laurels isn't an option if it wants to fend off Micron and SK Hynix. Besides, Samsung needs to put some of those record profits to good use.