Samsung To Have $1B Investment For US Chip Production
By Czarina Ara Lasco
Nov 03, 2016 05:36 AM EDT
Nov 03, 2016 05:36 AM EDT
By the end of June 2017, Samsung Electronics Co. Ltd. is planned to invest more than a billion dollars with the goal of boosting its production of system chips in the company's manufacturing facilities in Austin, Texas in the United States in order to meet the corporation's increasing demand.
The deal comes after Samsung SSNLF -12.28% declared last week that the company's capital expenditure for 2016 would get higher to a record 27 trillion won ($24 billion), while 13.2 trillion won of which is allocated for its semiconductor business.
Samsung Electronics Co. Ltd. is the world's second largest chipmaker following Intel, INTC which leads by 0.23%. The South Korean Smartphone manufacturer said in an official statement that the company's investment would enhance the production of chips for mobile and other electronic devices from its existing facilities in the city.
While most of the said company's semiconductor revenues arrive from its memory chip sales, Samsung has been trying to improve its earnings from its other product offerings including its very own Exynos mobile processors and its contract manufacturing transactions with several companies such as Qualcomm and Nvidia.
According to Samsung official statement, the said billion dollar investments will be accomplished in Samsung's Austin, Texas manufacturing facility by the first half of 2017 in an effort to boost System LSI production to be able to cope up with the growing demands of the industry for advanced system-on-chip products.
As to the amount of the production capacity that would be added, Samsung did not release any further details for its plan for larger investments in its facilities in Austin.
More so, Samsung did not give specifics about the projected impacts of the investments to the 2.3 million square foot facilities' output.
As of the present, Samsung Electronics Co. Ltd. has already employed nearly 3,000 employees at its manufacturing facilities in Austin.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2012 revenues, and 4th in market value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th and 36th-largest construction companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest life insurance company), Samsung Everland (operator of Everland Resort, the oldest theme park in South Korea) and Cheil Worldwide (the world's 15th-largest advertising agency measured by 2012 revenues).
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