Samsung is the biggest memory chip manufacture in the world. To retain its current position in the future, the company has officially announced its plans when investing about 18.6 billion dollar in the South Korea to boost the production of memory chips. A part of the money will also be invested for the production of the next-generation OLED displays, specifically foldable screen for smartphones.
According to the Samsung’s plan, the company promises to create about five hundred thousand jobs until 2021, when spending $12.5 billion into its new NAND factory in Pyeongtaek, South Korea. The investment was made after the demand for the memory chips of the market has been rising. With high demand along with the supply shortages, theirs price have been increasing for the recent years. That is why Samsung wants to set a new record profits this year.
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Regarding to some analysts, they state that the additional production capacity will possibly cause a little oversupply in early 2018, though the price will not decrease due to the strong demand.
As we said earlier, a part of the investment will also be poured into the next-generation OLED displays for smartphone. There will be around 1 trillion won (around $870 million) invested into the new foldable OLED display in its Home country. The demand for OLED panels is extremely high at present, but a few companies said that they would not be able to produce enough OLED displays for the smartphones. Google previously invested into LG’s display division
Samsung Display is currently the biggest manufactures about the OLED smartphone display area when it takes up over 90 percent on the market. Comparing to companies like LG, and some others, which are increasing their production capacity, it seems company is more willing to open its wallet and spend a big amount of money to remain the first position in the competition.