On Monday, Samsung announced that it has begun construction of a new domestic production line for NAND flash memory chips, betting on demand for personal computers and servers as the coronavirus prompts more people to work from home. The company is targeting the second half of next year to mass-produce the chips, used for storage, on the added line in its plant in Pyeongtaek city, which is within a two-hour drive from the capital Seoul.
The company said that the additional capacity will also help meet the demand for 5G smartphones and other devices, despite recent delays in deployments of 5G networks in Europe and other countries due to the health crisis.
Analysts said the range of investment would be between KRW 7 trillion and KRW 8 trillion.
Samsung is also developing its second Xian plant in China with an additional line, slated for production in the first half of next year.
According to a trade ministry statement on Monday, South Korea’s chip exports for May rose 7.1 percent from a year earlier, as working from home trends and online classes boosted demand for servers and PCs, and Chinese PC makers recovered production, driving up chip prices.
Eo Kyu-jin, an analyst at DB Financial Investment said that “Data server customers will likely continue to invest in beef up their infrastructure to demand drawn from customers’ increased online activities.”