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Samsung to invest $24 billion in chips and displays this year

Samsung has announced that it would be spending a whopping 27 trillion won (approximately 24 billion US dollars) in semiconductors and displays this year.
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Published onOctober 27, 2016

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Samsung has announced that it would be spending a whopping 27 trillion won (approximately 24 billion US dollars) in semiconductors and displays this year.

Samsung said to be manufacturing 10nm Snapdragon 830 processor
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It’s true that Samsung has been steadily increasing the amount of money it’s investing in production facilities. In 2010, it was 21 trillion won, and the figure’s been going up by a trillion or so each year, and this year’s expected sum is the highest yet.

It looks like the two major investments will be in V-NAND flash memory chips and flexible OLED displays. Samsung is said to be investing 13.2 trillion won in the production of V-NAND chips, which are used for business servers that handle large amounts of data. The South Korean company will spend 10.9 trillion won for OLED displays – that is more than twice the sum that Samsung invested in displays last year.

The demand for V-NAND flash memory chips has been increasing steadily, and as for OLED displays, many analysts predict that there will be a major boom in OLED consumption next year. Apple and Chinese OEMs are expected to play a huge role, and with VR becoming more and more mainstream, OLED displays are bound to become the norm. Given all this, V-NAND and OLED technologies are low-risk areas where Samsung can safely expect to see market dominance.

V-NAND and OLED technologies are low-risk areas where Samsung can safely expect to see market dominance.

The company also reported that its Q3 operating profit dropped by almost 30 percent year-over-year, and its revenue fell by around 7 percent. Given the Galaxy Note 7 fiasco and the subsequent decline in Q3 earnings, and given the surging demand for chips and OLED displays, Samsung’s move to invest such a substantial amount of money in production facilities is undoubtedly a very strategic one.

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