[Post-Corona Strategy] Samsung Electronics Maintains Huge Lead Over Latecomers Through Aggressive Investment

Samsung Electronics Pyeongtaek Campus (Photo by Samsung Electronics)

[Asia Economy Reporter Changhwan Lee] Samsung Electronics is building large-scale NAND flash and foundry (semiconductor contract manufacturing) lines at its Pyeongtaek plant in Gyeonggi Province to overcome the COVID-19 crisis and secure future markets.

Last month, Samsung Electronics began cleanroom construction for NAND flash production at Pyeongtaek Line 2 and plans to start mass production in the second half of 2021. This investment is aimed at responding to the mid- to long-term expansion of NAND demand driven by the advent of the 4th Industrial Revolution, including artificial intelligence (AI) and the Internet of Things (IoT), as well as the spread of 5G.

In particular, with the recent acceleration of the 'untact' lifestyle trend, Samsung Electronics' strategy is to proactively invest to secure future market opportunities. The expanded line from this investment will mass-produce Samsung Electronics' cutting-edge V-NAND products.

Samsung Electronics also plans to build foundry facilities at the same plant to meet the increasing demand for advanced products based on EUV (extreme ultraviolet) technology. This investment is part of the follow-up measures related to Samsung Electronics' 'Semiconductor Vision 2030' announced in April last year.

Samsung Electronics continues large-scale foundry investments to achieve global No. 1 status in the system semiconductor sector. Since starting the industry's first EUV-based 7-nanometer semiconductor mass production at the Hwaseong S3 line in 2019, Samsung has continuously expanded ultra-fine process production capacity through the Hwaseong V1 line in 2020. With the operation of the Pyeongtaek line in 2021, the production scale of products based on ultra-fine processes below 7 nanometers is expected to increase even more steeply.

Additionally, Samsung Electronics plans to first mass-produce 5-nanometer products, which maximize productivity, at Hwaseong in the second half of this year, followed by main production at the Pyeongtaek foundry line.

Jung Eun-seung, President of Samsung Electronics' DS Division Foundry Business, emphasized, "We will continue solid growth in the foundry business through strategic investments and continuous recruitment of personnel."

This content was produced with the assistance of AI translation services.