In an attempt to stay ahead of its competitors, Samsung announced plans on Tuesday to invest $18.6 billion USD into its memory chip and smartphone display manufacturing divisions.
Of that $18.6 billion USD, Samsung will invest 14.4 trillion won ($16.1 billion CAD) towards its new factory in Pyeongtaek, South Korea. It will put another 6 trillion won ($6.73 billion CAD) towards a new production line in Hwaseong, South Korea.
In all, the investment is expected to create 440,000 jobs by the end of 2021. Samsung already invests about $10 billion USD into its chipmaking business annually.
In addition, while unlikely to address the short term flash memory supply shortage plaguing the industry, the investment is expected to eventually lead to oversupply. However, market analysts interviewed by Reuters don’t predict flash memory chip prices will fall as a result.
Samsung’s investment is still good news for consumers; popular electronics like the Nintendo Switch have been in short supply due to the demand and short supply of memory chips.
Samsung Display, the company’s display manufacturing division, also announced plans to invest an additional 1 trillion won($1.12 billion CAD) into its OLED production. The move likely comes in response to demand from Apple for its next iPhone.