Samsung Invest US $ 18.6 billion for Chip and Screen Business

Samsung Invest US $ 18.6 billion for Chip and Screen Business
Samsung Electronics announced it will invest US $ 18.6 billion in South Korea. Funds are poured to make the company remains the leader of the chip and screen business in the market.

As quoted from Phone Arena, Samsung is reported to have invested more than US $ 10 billion every year for its chip maker department.

Samsung's chip is expected to begin to gain profits this year. Thus, the huge investment made by Samsung is certainly very reasonable.

Another factor that is the reason Samsung is investing in its home country is likely because South Korean new president Moon Jae-in invites big companies to invest their capital domestically. The goal is to create more jobs in the Kpop country.

It is estimated, Samsung's investment in the field of chips and screens with fantastic value that it will create at least 440 thousand jobs until 2021.

Just to note, the memory chips business is now getting quite a lot of demand along with the number of flagship smartphone produced by smartphone manufacturers.

Some industry observers predict the change will start in 2018, but will not make chip prices rise.

Along with investment in the chip field, Samsung also announced Samsung Display will invest US $ 870 million for a new OLED display factory in the country.

Now the company is reportedly holding 90 percent of the market share for OLED screens. To that end, Samsung intends to increase its production to meet the demand of OLED screens.

Reuters reported, Samsung's investment move is considered to convince investors the company is very capable of making big strides without their de facto leader, Vice Chairman Jay Y Lee. Lee is now detained for involvement in South Korea's previous bribery, Park Guen-hye.

Head of Corporate Analysts CEO Score Park Ju-gun called, "Samsung is getting more and more aggressive investing in the country because of the political climate in South Korea."

Park said after announcing plans to build a factory with a value of US $ 380 million in the United States, Samsung also needs to invest in the country.

Not only that, Samsung is also reportedly planning to add production lines at its NAND plant located in Xi'an China. Currently not known how the amount of investment planned to be disbursed company.

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