Samsung planning to build a new chip plant

Samsung has recently revealed to the press that it expects a decline in revenues of the company in the third quarter of 2014, but hopes for a better situation in the fourth quarter of the year, with the release of new smartphones like the Galaxy Note 4, Galaxy A5, Galaxy A3 and Galaxy A7. The Gear S smartwatch from Samsung is also set for an October release date, so things might start looking up for the company by the time we pass into 2015.

Reportedly, Samsung will have a budget report almost identical to that of 2011, which would mean a dramatic drop in revenue and share values. Samsung says that this drop was mainly cause by their declining smartphone sales, as well as declining prices for TVs. Consequently, the chip business Samsung has been tampering well is supposed to surpass the smartphone division of the company in terms of revenue by the end of the year. In light of these new analyses, Samsung decided that it would be best if the company focused more on what was getting more popular: chipset. You’ve all probably heard about the Exynos SoC, which you can find in a certain Galaxy Note 4 variant as well as other Android smartphones on the market.

If Samsung decides that logic and memory chips were the way to improve its revenues and status, they would probably be right, since the company would be manufacturing chipsets for various other OEMs and their phones. That in turn would bring in a whole lot more revenue and profit for the company, since Exynos chips have performed surprisingly well so far, with great user reports and benchmark results as well.

Samsung will start building the new chip factory in 2015 and it will be located in Pyeongtaek, just off Seoul. The company is said to be investing roughly $15 billion into the new chip plant, but we don’t know whether they will be manufacturing logic chips or memory models. Samsung says the facility should be completed by 2017 and it should create 150.000 jobs when it opens. “The semiconductor industrial zone set to be established in Pyeongtaek will take a crucial role in the future of Samsung’s chip business,” said chief exec of Samsung, Kwon Oh-hyun. 

Categories: Tech

Tags: business, chipset, Exynos, galaxy, Samsung, SoC