Samsung adjusts chip factory construction plan to respond to changes in market demand

 


【Lansheng Technology News】Although Samsung's semiconductor business faces continued challenges, the company remains optimistic about the market prospects in the second half of this year. To improve efficiency and better respond to market demand, Samsung is making some adjustments to its chip factories.


Specifically, Samsung is adjusting the construction schedule of its P4 factory in Pyeongtaek, South Korea, to prioritize the construction of PH2 clean rooms. Previously, Samsung had announced that it was suspending the construction of new production lines at the P5 factory.


Samsung is adjusting its construction plans based on market dynamics. Pyeongtaek is one of Samsung's main semiconductor manufacturing centers and is where Samsung's foundry business is concentrated and where the company produces memory chips. Currently, P1, P2 and P3 plants are in operation, and P4 and P5 are under construction.


With construction of the P5 factory temporarily stalled, Samsung will focus on completing P4's PH2 clean room, which will be dedicated to contract chip manufacturing. Samsung is working to expand its foundry capacity in a bid to win more customers from TSMC.


The P4 production line will also build a PH3 clean room for the production of memory chips such as DRAM. Samsung reportedly adjusted its construction plans because it believes demand for these products will rise in the near future and wants to prepare production capacity to meet demand.


Although Samsung previously said that the P5 production line was suspended for inspections, market analysts believe that Samsung is likely to be slowing down the pace of construction due to the market downturn. Samsung has been hit hard by tough market conditions and even canceled all bonuses for chip division employees this year.


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