Speed Management Revived: Samsung Electronics to Invest Up To 30 Trillion Won in Pyeongtaek Plant | BusinessKorea

Saturday, February 24, 2018

Samsung Electronics will make an investment worth of 30 trillion won in its semiconductor complex in Pyeongtaek, South Korea.
Samsung Electronics will make an investment worth of 30 trillion won in its semiconductor complex in Pyeongtaek, South Korea.
Seoul, Korea
7 February 2018 - 9:15am
Cho Jin-young

Samsung Electronics will begin to invest up to 30 trillion won (US$27 billion) in Pyeongtaek Semiconductor Plant 2 in two days after vice chairman Lee Jae-yong’s release from prison.

According to the semiconductor industry on February 6, Samsung Electronics will hold a management committee meeting presided over by Kim Ki-nam, head of the device solution division (DS) and approve an investment plan for Semiconductor Line 2 at the Gudeok Industrial Complex in Pyeongtaek, Gyeonggi Province. Since July of last year, Samsung Electronics has been producing 3D NAND flashes at Pyeongtaek Line 1 which cost 15.6 trillion won (US$14.4 billion). The company has decided to invest 30 trillion won in Line 1 by pouring an additional 14 trillion (US$12.6 billion) into the expansion of DRAM production.

Industry watchers predict that Line 2 will be built on the same scale as Line 1. In this case, it is forecast that investment in Line 2 construction will reach up to 30 trillion won. "We are planning to make decisions on production items, investment amounts, and time to begin operation by taking the semiconductor market into consideration,” a Samsung Electronics official said. “We expect to be able to respond quickly to ever-changing demand for memory semiconductors.”

“Samsung Electronics has discussed the investment in Pyeongtaek Line 2 for a long time regardless of the court’s handing down a sentence to vice chairman Lee,” said a representative of Samsung Electronics in reference to the investment decision.  However, in the Korean business world, it is being construed as a sign of the revival of speed management unique to Samsung.

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