Samsung is going to invest heavily in the production of memory chips in the first half of 2021

Samsung is one of the top manufacturers of memory and storage chips in the world. The company is not going to slow down next year. Samsung is reportedly planning to increase its monthly production capacity by 100,000 12-inch wafers in the first half of 2021. Due to the need to work and study from home, the demand for memory and storage chips has increased while the prices have fallen. In the second quarter alone, average selling prices for DRAM and NAND chips fell by 10%. Samsung expects demand and pricing to go up next year as the companies have started using their inventory and making investments.

Samsung is going to allocate its next significant investment to DRAM and NAND flash chip production. Half of the investment will go towards boosting DRAM production at the Pyeongtaek Line 2 (P2) plant, and the other half will go towards boosting NAND flash production at the Xi'an and P2 plants. It took an investment of $10.8 billion to build Samsung Semiconductor's first plant in Xi'an with a monthly production capacity of 100,000 wafers. The P2 plant manufactures 200,000 12-inch wafers per month. Imagine how huge the investment needed to increase chip production by 100,000 wafers would be.

Samsung is also planning to enhance the development of its 3nm process based on Gate-All-Around technology. The company is reportedly planning to invest about $116 billion to move to mass production of 3nm chips in 2022.

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