Samsung will invest more than $18 billion over the next four years to expand its memory chip and smartphone businesses in South Korea.
Samsung's investment announcement coincides with the start of mass chip production at its Pyeongtaek facility. Tech firms have been increasing their data centers and servers in order to increase data from mobile devices and motor vehicles as well as expectations that increased dependence on artificial intelligence means would mean more demand for data handling operations.
Samsung Electronics is also reviewing its plan to construct additional semiconductor line in Xi'an, China in order to actively respond to demands for memories in China. The fourth generation chip, according to Samsung, transmits data 50 percent faster than its predecessor, the 48-layer V-NAND chip.
Memory and flash fabber Samsung is boosting production, convinced that high demand for chips is here to stay. However, the shortages are expected to remain through this year, as new production lines reportedly won't make meaningful supply contributions until 2018.
"Pyeongtaek Semiconductor Complex is a new challenge for Samsung Electronics' future in semiconductor business." said Vice-Chairman Kwon Oh-hyun.More news: Treasury Department announces sanctions against Chinese bank
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Samsung will invest a total of 30 trillion won into its current Pyeongtaek line to expand its fabrication capacity by 2021.
It will also put KRW 6 trillion ($5.2bn) towards a new semiconductor fabrication line at its site in Hwaseong with the latest equipment, including Extreme Ultra Violet (EUV) kit, being installed.
In response to rising market needs, Samsung, across both Samsung Electronics and Samsung Display, plans to reinforce its manufacturing capabilities by investing more than 37 trillion won into its global production facilities. The existing factory is operating at full capacity. It is heard that Samsung is now discussing with South Korean Government and Chinese Government in order to construct additional line in Xi'an.
Samsung concluded by claiming the investment on the plants would eventually lead to the creation of up to 440,000 jobs through to 2021 which will have a stimulating effect on the economy as well.