Samsung Electronics (SSNLF) has announced that it is pumping 20.4 trillion won ($18 billion) of new investment into growing its semiconductor manufacturing facilities in South Korea.
While consumers may first associate the brand with smartphones and televisions, Samsung is the world’s largest producer of memory chips. According to data compiled by Bloomberg, semiconductors generated almost half of the company’s operating revenue in 2016. The latest round of investments means that those revenues are set to swell further.
In a company statement issued Tuesday, Samsung announced that by 2021 investments in its Pyeongtaek plant—which has already seen 15.6 trillion won ($13.5 billion) of spending—would rise to 30 trillion won ($26 billion). A further 6 trillion won ($5 billion) is being committed to boosting production at Hwaseong.
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Samsung’s investment announcement coincides with the start of mass chip production at its Pyeongtaek facility. Advancements in the automotive industry, artificial intelligence and the so-called Internet of Things, are expected drive demand for semiconductors in the coming years.
