As Chinese companies make an aggressive push in the global memory chip market, Samsung is taking steps to ensure that its lead does not erode. It’s investing more resources into the semiconductor business to better compete against Chinese companies who are reportedly being backed by their government.
Samsung has already announced plans to invest $13 billion in plants located in Pyeongtaek, Gyeonggi Province. The investment will be used to produce 3-D NAND chips and will enable the company to stay ahead of the competition. The response follows Chinese conglomerate Tsinghua Unigroup’s acquisition of half of XMC – China’s state-run chip manufacturer. Industry analysts view this move as helping China to establish a name for itself in the global memory chip market. Tsinghua Unigroup is expected to set up memory chip factories in China by investing $12 billion while XMC has its own plans to invest as much as $24 billion in a wafer plant. Samsung competitor SK hynix is also boosting its investment in this sector to take on the Chinese rivals.
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