Industry data shows that demand of personal computers, servers and other consumer electronics has been increasing constantly since coronavirus kicked in forcing individuals to stay and work from home hence the need for the devices in their homes.
Tech giant Samsung Electronics Co (KRX: 005930) has announced that it will be building an additional domestic memory chip line for NAND flash memory chips to cater for increasing demand of PC’s and servers.
Data released by Trade Ministry of South Korea shows chip export of the country in May increased by 7% in comparison to those exported in May 2019. This increase has resulted to increased chip prices.
This new plant will be located in Pyeongtaek city, a two hour drive from South Korea capital Seoul and it will be aiming to start mass production of the chips at the plant in the second half of the year.
In additional Samsung says the new plant will also aid in production of 5G smartphone components among other devices, this comes months after deployment of 5G infrastructure in Europe has been slowed due to health crises.
The company failed to disclose how much it will cost establishing the upcoming plant, however, analysts were quick to estimate a range of the investment placing it at anything in between 7 trillion won ($5.70 billion) to 8 trillion won.